Audit 308475

U.S. Department of Treasury Program Name: Coronavirus State and Local Fiscal Recovery Fund Assistance Listing Number 21.027 Internal Control Over Procurement Criteria: 2 CFR Part 200.318, requires grant recipients to follow the procurement standards established by their state and their own policies as long as those standards meet federal requirements. The County’s procurement standards meet federal and state requirements. Condition: During our testing of the Coronavirus State and Local Fiscal Recovery Fund (“ARPA”), it was discovered that the County did not adhere to its established Procurement Policy as multiple contractors were engaged without any formal quote or a bid. Possible Effects: The County could unintentionally enter into a contract that the County’s governance would deem unsuitable were the proper policy followed. Questioned Costs: $633,457. Context/Effect: We tested four contractors paid with ARPA funds who were engaged without a formal approval, quote or competitive bid. Cause: The County did not adhere to its established Procurement Policy, and did not adhere to the Uniform Guidance requirements to ensure free and open competition. Recommendation: We recommend the County review its process for awarding all contracts paid with federal funding to ensure free and open competition in accordance with federal guidelines. Management's Response: We agree and have taken proactive measures within the Purchasing Department to enhance training and awareness among our staff. Additionally, the Grant division has been reinforcing the importance of adhering to Federal grant guidelines regarding procurement. We will continue to monitor and improve our processes to ensure compliance with established guidelines.

U.S. Department of Treasury Program Name: Coronavirus State and Local Fiscal Recovery Fund Assistance Listing Number 21.027 Internal Control Over Procurement Criteria: 2 CFR Part 200.318, requires grant recipients to follow the procurement standards established by their state and their own policies as long as those standards meet federal requirements. The County’s procurement standards meet federal and state requirements. Condition: During our testing of the Coronavirus State and Local Fiscal Recovery Fund (“ARPA”), it was discovered that the County did not adhere to its established Procurement Policy as multiple contractors were engaged without any formal quote or a bid. Possible Effects: The County could unintentionally enter into a contract that the County’s governance would deem unsuitable were the proper policy followed. Questioned Costs: $633,457. Context/Effect: We tested four contractors paid with ARPA funds who were engaged without a formal approval, quote or competitive bid. Cause: The County did not adhere to its established Procurement Policy, and did not adhere to the Uniform Guidance requirements to ensure free and open competition. Recommendation: We recommend the County review its process for awarding all contracts paid with federal funding to ensure free and open competition in accordance with federal guidelines. Management's Response: We agree and have taken proactive measures within the Purchasing Department to enhance training and awareness among our staff. Additionally, the Grant division has been reinforcing the importance of adhering to Federal grant guidelines regarding procurement. We will continue to monitor and improve our processes to ensure compliance with established guidelines.