Finding 969623 (2023-002)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-04-15
Audit: 303503
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The Port Authority lacks a current procurement policy that meets federal regulations, risking non-compliance with federal award management.
  • Impacted Requirements: Compliance with 2 CFR 200.303(a) and procurement standards in 2 CFR sections 200.318-326, including the Buy America preference under the BABA Act.
  • Recommended Follow-Up: Update the procurement policy to align with current federal requirements and ensure regular reviews as regulations change.

Finding Text

2023-002 U.S. Department of Transportation, National Infrastructure Investments: Better Utilizing Investments to Leverage Development (BUILD) Grant Assistance Listing Number 20.933 Procurement Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award the provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations and conditions of the federal award. Non-federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Effective May 14, 2022, the non-Federal entity must ensure that all applicable programs comply with section 70914 of the Build America, Buy America (BABA) Act, including through incorporation of a Buy America preference in the terms and conditions of each award with an infrastructure project. Condition: The Port Authority’s formally documented policy pre-dates Uniform Guidance and does not include many of the necessary procurement provisions. Cause: The Port Authority does not have a policy in place under the most current regulations for the federal programs the Port Authority administrates. Effect: The Port Authority does not have a policy in place and is at risk for not being in accordance with federal regulations for the federal programs the Port Authority administrates. However, note that the Port Authority does use an engineering firm that appears to be following a policy that is up-to-date with federal regulations for this federal program. Questioned costs: None reported.Context: Procurement requirements were applicable to 1 vendor for this program in FY2023. The vendor appears to have bidding documents in accordance with federal regulations, including the BABA Act. Repeat Finding From Prior Year: No Recommendation: The policy should be updated to include all federal requirements for procurement and updated on a regular basis as those regulations change. Views of Responsible Officials: We agree with the finding

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring Material Weakness

Other Findings in this Audit

  • 393181 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
20.933 National Infrastructure Investments $2.22M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $313,778
11.307 Economic Adjustment Assistance $137,862