Audit 314962

Condition: The Land Bank has not adopted a written procurement policy. The Land Bank did not retain supporting documentation for procurements actions related to demolition contracts entered during the year ended December 31, 2022, with four demolition contractors totaling $196,698 that were selected for testing. Context: The Land Bank represented contractors were evaluated by analyzing City of Wilmington demolition permit information. The Land Bank did not retain documentation of this analysis to support its procurement actions. Criteria: CFR § 200.318, General Procurement Standards and § 200.320 Methods of Procurement to be Followed,of the Uniform Guidance apply to the State and Local Fiscal Recovery Funds Program and require the following: i. The Land Bank must adopt documented procurement procedures that are consistent with the applicable State, local and federal regulations. ii. The Land Bank’s documented procurement procedures must include the following elements at a minimum: a. Micro-purposes - purchases up to $50,000 may be made without soliciting competitive price or rate quotations if the price is considered reasonable. b. Small Purchases - purchases between $50,000 and $250,000 may be made with soliciting competitive price or rate quotations from an adequate number of qualified sources. c. Formal Procedures - purchases over $250,000 must be made by seal bid or competitive proposal. Cause: The Land Bank does not have a written procurement policy. Question Costs: None Effect: The Land Bank did comply with the Uniform Guidance requirement to adopt a procurement policy and did not fully document its procurements. Recommendation: We recommend Land Bank establish a procurement policy and prepare documentation for each procurement action.

Condition: The Land Bank has not adopted a written procurement policy. The Land Bank did not retain supporting documentation for procurements actions related to demolition contracts entered during the year ended December 31, 2022, with four demolition contractors totaling $196,698 that were selected for testing. Context: The Land Bank represented contractors were evaluated by analyzing City of Wilmington demolition permit information. The Land Bank did not retain documentation of this analysis to support its procurement actions. Criteria: CFR § 200.318, General Procurement Standards and § 200.320 Methods of Procurement to be Followed,of the Uniform Guidance apply to the State and Local Fiscal Recovery Funds Program and require the following: i. The Land Bank must adopt documented procurement procedures that are consistent with the applicable State, local and federal regulations. ii. The Land Bank’s documented procurement procedures must include the following elements at a minimum: a. Micro-purposes - purchases up to $50,000 may be made without soliciting competitive price or rate quotations if the price is considered reasonable. b. Small Purchases - purchases between $50,000 and $250,000 may be made with soliciting competitive price or rate quotations from an adequate number of qualified sources. c. Formal Procedures - purchases over $250,000 must be made by seal bid or competitive proposal. Cause: The Land Bank does not have a written procurement policy. Question Costs: None Effect: The Land Bank did comply with the Uniform Guidance requirement to adopt a procurement policy and did not fully document its procurements. Recommendation: We recommend Land Bank establish a procurement policy and prepare documentation for each procurement action.