JAMUL INDIAN VILLAGE

2023-002 – Procurement and Suspension and Debarment – Material Weakness in Internal Controls Over Compliance and Material Non-Compliance ALN Federal Agency/Pass-through Entity – Program Name Award Number Award Year Questioned Costs 20.205 Department of Transportation – Highway Planning and Construction A16AP00075 Various N/A Criteria: Non-federal entities are prohibited from contracting with or making sub-awards under covered transactions to parties that are suspended or debarred or whose principals are suspended or debarred. “Covered transactions” include those procurement contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to be equal or exceed $25,000 or meet certain other specified criteria. Additionally, the recipients are expected to have procurement policies and procedures in place that comply with the procurement standards outlined in §200.318 of the Uniform Guidance. Condition/Context: There was only 1 vendor for the program that the Tribe was required to follow procurement and suspension and debarment compliance requirements. The vendor received $193,346 during the year ended December 31, 2023. For 1 of 1 vendor tested for compliance with suspension and debarment requirements, the Tribe was unable to provide documentation indicating that a suspension and debarment check was conducted prior to contracting with the vendor. However, we were able to verify during the course of the audit that this vendor was not previously suspended or debarred. For 1 of 1 vendor tested for compliance with procurement requirements, the Tribe could not provide support that procurement policies were followed to obtain three or more bids or provide documentation to justify sole source prior to contracting with the vendor. Cause: The program did not follow the Tribe’s procurement policy’s documentation requirements to obtain multiple bids or document sole source justification and obtain verification that a suspension and debarment check was conducted prior to contracting with the vendor. Effect: If vendors are retained and paid from federal funds and are later found to be suspended or debarred, or if it is determined that programs did not assure full and open competition, the Tribe could be subject to questioned costs or other sanctions from funding agencies. Questioned costs: The questioned costs associated with procurement, suspension, and debarment was not determinable. Due to lack of multiple bids, we are unable to determine whether the Tribe would have received a different contract price if procurement policies were followed. Repeat finding: This is not a repeat finding. Recommendation: The Tribe should ensure procurement policies are followed and procedures are in place to verify suspension and debarment requirements are followed prior to contracting with vendors exceeding the suspension and debarment threshold. Views of responsible officials and planned corrective action: The Tribe has implemented policies and procedures for the procurement of all funds, including federal funds, to ensure compliance with relevant laws and regulations. To strengthen internal controls, the Tribe will develop training materials on procurement processes and responsibilities for those involved in managing goods and services with federal funds. A flowchart outlining the procurement process will also be created and shared with all Tribe procurement parties for easy reference.