Finding 969838 (2022-005)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2024-04-16
Audit: 303639
Organization: City of El Monte (CA)

AI Summary

  • Core Issue: A consultant was awarded a project despite having a lower cumulative score due to the exclusion of one scoring sheet deemed an outlier.
  • Impacted Requirements: This finding violates 2 CFR Part 200, which mandates that contracts be awarded based on the most advantageous proposal, considering all scores.
  • Recommended Follow-Up: Ensure that all RFQ results are presented to City Council without alterations, and allow staff to justify any deviations from the highest score if necessary.

Finding Text

Federal Agency: U.S. Department of Treasury Federal Program Titles: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Numbers: 21.027 Award Period: July 1, 2021, to June 30, 2022 Type of Finding: Material Weakness in Internal Control Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires that Contracts be awarded to the responsible offeror whose proposal is most advantageous to the non-Federal entity, with price and other factors considered. Condition: Based on our review of subjective scoring sheets completed by members of a selection panel for one request for qualifications (RFQ) process, we noted that the project was awarded to the consultant with the lower cumulative score. Additionally, upon review of the staff report for the project, we noted that the staff report indicated there were 4 members on the selection panel, yet we were provided with 5 scoring sheets. Upon inquiry of why the consultant with the lower score was selected and why fewer members of the selection committee were indicated on the staff report than what was expected (based on the number of scoring sheets provided), we were informed that one scoring sheet was excluded from the staff report because it was considered to be an outlier. The exclusion of this scoring sheet resulted in the consultant selected having a higher cumulative score. Questioned Costs: None. Context: This was the only procurement where these conditions were noted. Cause: The scoring sheet of one selection panel member was excluded from RFQ results presented to City Council. Effect: Incomplete information was presented to City Council for the selection of the consultant for the project. Recommendation: We recommend that unaltered results of RFQ procedures be presented to City Council. If staff believes there are reasons why a consultant, other than the one with the highest cumulative score should be selected, they may present their recommendation to select the consultant with a lower score to City Council.

Categories

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Material Weakness Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 393396 2022-005
    Material Weakness
  • 393397 2022-006
    Significant Deficiency
  • 393398 2022-006
    Significant Deficiency
  • 393399 2022-007
    Significant Deficiency
  • 969839 2022-006
    Significant Deficiency
  • 969840 2022-006
    Significant Deficiency
  • 969841 2022-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
20.205 Highway Planning and Construction $1.68M
16.922 Equitable Sharing Program $1.22M
14.239 Home Investment Partnerships Program $938,335
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $791,671
14.218 Community Development Block Grants/entitlement Grants $399,914
14.231 Emergency Solutions Grant Program $265,675
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $101,455
97.067 Homeland Security Grant Program $100,000
21.016 Equitable Sharing $99,757
21.027 Coronavirus State and Local Fiscal Recovery Funds $97,225
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $96,509
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $91,519
66.202 Congressionally Mandated Projects $86,629
21.019 Coronavirus Relief Fund $61,883
20.616 National Priority Safety Programs $56,300
20.600 State and Community Highway Safety $38,271
93.053 Nutrition Services Incentive Program $12,086
16.738 Edward Byrne Memorial Justice Assistance Grant Program $4,965