FAC Explorer

Finding 964048 (2023-006)

-
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-03-28
Audit: 299718
Organization: Plan International Inc. (NY)
Auditor: Pricewaterhousecoopers LLP

AI Summary

  • Core Issue: Documentation for sole-source arrangements is lacking, violating federal guidelines.
  • Impacted Requirements: Competitive bidding is required for vendors above $165; justification must be documented.
  • Recommended Follow-Up: Implement policies to retain documentation and conduct re-tendering before extending contracts.

Finding Text

Ref 2023-006: Documentation needs to be maintained to justify the rationale for sole-source arrangements Federal Agency: United States Agency for International Development (USAID) for Nigeria OTL Program: Nigeria OTL Assistance Listing: 98.001 (Nigeria OTL) Award #: 72062021CA00006 NGA100152 (Nigeria OTL) Award year: FY23 Pass-through: Plan USA, Inc. Criteria: Under 2 CFR 200.320(c) vendors above a micro-purchase threshold (currently $165 for Nigeria OTL, which is more restrictive than the threshold in the Uniform Guidance) require a competitive process that includes soliciting multiple bids/quotes to justify best value. The Uniform Guidance requires purchasing decisions to be documented, including sole source justification, as applicable. Condition : We identified five transactions totalling $6,096 with two vendors where long-term arrangements (LTA) were in place for the two vendors but documentation was not retained to demonstrate that a competitive bid process had been performed prior to entering into the LTA. We identified four transactions totalling $5,183 with one vendor where an LTA was in place, but the LTA was extended with the same vendor without management documenting their rationale for sole sourcing this arrangement. The original LTA dates back to 2018 and multiple vendors were initially considered and documentation retained to demonstrate the initial tender at this point. However, documentation was not retained regarding subsequent considerations around maintaining this supplier under a sole source arrangement. Cause: Plan’s accounting policy is silent on a re-tender process should Plan choose to continue to use the same vendor and as such LTAs were extended without retaining documentation that is required in such instances under the Uniform Guidance. Effect: This could lead to missing out on better prospective vendors that management could do business with. There is also a possibility of management bias to continue using the same vendor. Recommendation: Management should put in place policies and procedures that require retaining documentation to justify the rationale for purchasing decisions consistent with the Uniform Guidance. We suggest that management performs a re-tendering process at the end of any LTA prior to extending the contract or otherwise documents the rationale for maintaining these suppliers under a sole source arrangement. Views of Responsible Officials and Management’s Corrective Action Plan: Views of responsible officials and management’s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 387600 2023-003
    Significant Deficiency
  • 387601 2023-004
    Significant Deficiency Repeat
  • 387602 2023-003
    Significant Deficiency
  • 387603 2023-004
    Significant Deficiency Repeat
  • 387604 2023-003
    Significant Deficiency
  • 387605 2023-004
    Significant Deficiency Repeat
  • 387606 2023-006
    -
  • 387607 2023-003
    Significant Deficiency
  • 387608 2023-004
    Significant Deficiency Repeat
  • 387609 2023-003
    Significant Deficiency
  • 387610 2023-004
    Significant Deficiency Repeat
  • 387611 2023-007
    -
  • 387612 2023-003
    Significant Deficiency
  • 387613 2023-004
    Significant Deficiency Repeat
  • 387614 2023-003
    Significant Deficiency
  • 387615 2023-004
    Significant Deficiency Repeat
  • 387616 2023-003
    Significant Deficiency
  • 387617 2023-004
    Significant Deficiency Repeat
  • 387618 2023-003
    Significant Deficiency
  • 387619 2023-004
    Significant Deficiency Repeat
  • 387620 2023-003
    Significant Deficiency
  • 387621 2023-004
    Significant Deficiency Repeat
  • 387622 2023-003
    Significant Deficiency
  • 387623 2023-004
    Significant Deficiency Repeat
  • 387624 2023-003
    Significant Deficiency
  • 387625 2023-004
    Significant Deficiency Repeat
  • 387626 2023-003
    Significant Deficiency
  • 387627 2023-004
    Significant Deficiency Repeat
  • 387628 2023-003
    Significant Deficiency
  • 387629 2023-004
    Significant Deficiency Repeat
  • 387630 2023-003
    Significant Deficiency
  • 387631 2023-004
    Significant Deficiency Repeat
  • 387632 2023-003
    Significant Deficiency
  • 387633 2023-004
    Significant Deficiency Repeat
  • 387634 2023-003
    Significant Deficiency
  • 387635 2023-004
    Significant Deficiency Repeat
  • 387636 2023-003
    Significant Deficiency
  • 387637 2023-004
    Significant Deficiency Repeat
  • 387638 2023-003
    Significant Deficiency
  • 387639 2023-004
    Significant Deficiency Repeat
  • 387640 2023-003
    Significant Deficiency
  • 387641 2023-004
    Significant Deficiency Repeat
  • 387642 2023-007
    -
  • 387643 2023-003
    Significant Deficiency
  • 387644 2023-004
    Significant Deficiency Repeat
  • 387645 2023-007
    -
  • 387646 2023-003
    Significant Deficiency
  • 387647 2023-004
    Significant Deficiency Repeat
  • 387648 2023-003
    Significant Deficiency
  • 387649 2023-004
    Significant Deficiency Repeat
  • 387650 2023-003
    Significant Deficiency
  • 387651 2023-004
    Significant Deficiency Repeat
  • 387652 2023-003
    Significant Deficiency
  • 387653 2023-004
    Significant Deficiency Repeat
  • 387654 2023-003
    Significant Deficiency
  • 387655 2023-004
    Significant Deficiency Repeat
  • 964042 2023-003
    Significant Deficiency
  • 964043 2023-004
    Significant Deficiency Repeat
  • 964044 2023-003
    Significant Deficiency
  • 964045 2023-004
    Significant Deficiency Repeat
  • 964046 2023-003
    Significant Deficiency
  • 964047 2023-004
    Significant Deficiency Repeat
  • 964049 2023-003
    Significant Deficiency
  • 964050 2023-004
    Significant Deficiency Repeat
  • 964051 2023-003
    Significant Deficiency
  • 964052 2023-004
    Significant Deficiency Repeat
  • 964053 2023-007
    -
  • 964054 2023-003
    Significant Deficiency
  • 964055 2023-004
    Significant Deficiency Repeat
  • 964056 2023-003
    Significant Deficiency
  • 964057 2023-004
    Significant Deficiency Repeat
  • 964058 2023-003
    Significant Deficiency
  • 964059 2023-004
    Significant Deficiency Repeat
  • 964060 2023-003
    Significant Deficiency
  • 964061 2023-004
    Significant Deficiency Repeat
  • 964062 2023-003
    Significant Deficiency
  • 964063 2023-004
    Significant Deficiency Repeat
  • 964064 2023-003
    Significant Deficiency
  • 964065 2023-004
    Significant Deficiency Repeat
  • 964066 2023-003
    Significant Deficiency
  • 964067 2023-004
    Significant Deficiency Repeat
  • 964068 2023-003
    Significant Deficiency
  • 964069 2023-004
    Significant Deficiency Repeat
  • 964070 2023-003
    Significant Deficiency
  • 964071 2023-004
    Significant Deficiency Repeat
  • 964072 2023-003
    Significant Deficiency
  • 964073 2023-004
    Significant Deficiency Repeat
  • 964074 2023-003
    Significant Deficiency
  • 964075 2023-004
    Significant Deficiency Repeat
  • 964076 2023-003
    Significant Deficiency
  • 964077 2023-004
    Significant Deficiency Repeat
  • 964078 2023-003
    Significant Deficiency
  • 964079 2023-004
    Significant Deficiency Repeat
  • 964080 2023-003
    Significant Deficiency
  • 964081 2023-004
    Significant Deficiency Repeat
  • 964082 2023-003
    Significant Deficiency
  • 964083 2023-004
    Significant Deficiency Repeat
  • 964084 2023-007
    -
  • 964085 2023-003
    Significant Deficiency
  • 964086 2023-004
    Significant Deficiency Repeat
  • 964087 2023-007
    -
  • 964088 2023-003
    Significant Deficiency
  • 964089 2023-004
    Significant Deficiency Repeat
  • 964090 2023-003
    Significant Deficiency
  • 964091 2023-004
    Significant Deficiency Repeat
  • 964092 2023-003
    Significant Deficiency
  • 964093 2023-004
    Significant Deficiency Repeat
  • 964094 2023-003
    Significant Deficiency
  • 964095 2023-004
    Significant Deficiency Repeat
  • 964096 2023-003
    Significant Deficiency
  • 964097 2023-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.608 Food for Education $1.08M
19.019 International Programs to Combat Human Trafficking $298,150
19.517 Overseas Refugee Assistance Programs for Africa $210,755
17.401 International Labor Programs $183,493
98.001 Usaid Foreign Assistance for Programs Overseas $319