Audit 315804

2023-001 Procurement Grantor: U.S. Department of Treasury/U.S. Department of Justice Award Name: Equitable Sharing Program (“ESP”) Award Year: 01/01/23 – 12/31/23 CFDA Numbers: 21.016 / 16.922 Criteria OMB Uniform Guidance §200.318 – 200.319, states that the non-Federal entity must use its own documented procurement procedures which reflect applicable State, local and tribal laws and regulations, provided that the procedures confirm to applicable Federal law and standards and that all procurement transactions be conducted in a manner providing full and open competition. Condition During our procurement testing procedures, we selected 33 items purchased with ESP funds and reviewed the vendor activity report along with the purchase orders to ensure proper procurement procedures were followed. Through our testing, we identified one vendor being used for police vehicle equipment, which, in aggregate, exceeded the bid threshold. The purchases were made without the use of public bidding or through a State contract purchasing program. Cause The Borough utilized a vendor which stated its pricing was competitive and/or less than that of the State contract agency. The Borough did not request supporting documents to support the competitive pricing claims made by the vendor. Effect The Borough made purchases in excess of the bid threshold without the use of competitive bidding or through a State contract purchasing program. Questioned Costs The purchases made from the vendor totaled $65,418.17. Recommendation That expenditures be monitored for compliance with the Local Public Contracts Law. Management’s View and Corrective Action Plan Management’s views and corrective action plan is included under separate cover and filed with the State of New Jersey.

2023-002 Procurement Grantor: U.S. Department of Treasury Award Name: Coronavirus State and local Fiscal Recovery Funds (“SLFRF”) Award Year: 01/01/23 – 12/31/23 CFDA Numbers: 21.027 Criteria OMB Uniform Guidance §200.318 – 200.319, states that the non-Federal entity must use its own documented procurement procedures which reflect applicable State, local and tribal laws and regulations, provided that the procedures confirm to applicable Federal law and standards and that all procurement transactions be conducted in a manner providing full and open competition. Condition During our procurement testing procedures, we selected 3 items purchased with SLFRF funds and reviewed the vendor activity report along with the purchase orders to ensure proper procurement procedures were followed. Through our testing, we identified one vendor being used for fire department equipment, which, in aggregate, exceeded the bid threshold. The purchases were made without the use of public bidding or through a State contract purchasing program. Cause The Borough utilized a vendor without competitive bidding and/or through a State contract agency. Effect The Borough made purchases in excess of the bid threshold without the use of competitive bidding or through a State contract purchasing program. Questioned Costs The purchases made from the vendor totaled $52,308.15. Recommendation That expenditures be monitored for compliance with the Local Public Contracts Law. Management’s View and Corrective Action Plan Management’s views and corrective action plan is included under separate cover and filed with the State of New Jersey.

2023-001 Procurement Grantor: U.S. Department of Treasury/U.S. Department of Justice Award Name: Equitable Sharing Program (“ESP”) Award Year: 01/01/23 – 12/31/23 CFDA Numbers: 21.016 / 16.922 Criteria OMB Uniform Guidance §200.318 – 200.319, states that the non-Federal entity must use its own documented procurement procedures which reflect applicable State, local and tribal laws and regulations, provided that the procedures confirm to applicable Federal law and standards and that all procurement transactions be conducted in a manner providing full and open competition. Condition During our procurement testing procedures, we selected 33 items purchased with ESP funds and reviewed the vendor activity report along with the purchase orders to ensure proper procurement procedures were followed. Through our testing, we identified one vendor being used for police vehicle equipment, which, in aggregate, exceeded the bid threshold. The purchases were made without the use of public bidding or through a State contract purchasing program. Cause The Borough utilized a vendor which stated its pricing was competitive and/or less than that of the State contract agency. The Borough did not request supporting documents to support the competitive pricing claims made by the vendor. Effect The Borough made purchases in excess of the bid threshold without the use of competitive bidding or through a State contract purchasing program. Questioned Costs The purchases made from the vendor totaled $65,418.17. Recommendation That expenditures be monitored for compliance with the Local Public Contracts Law. Management’s View and Corrective Action Plan Management’s views and corrective action plan is included under separate cover and filed with the State of New Jersey.

2023-002 Procurement Grantor: U.S. Department of Treasury Award Name: Coronavirus State and local Fiscal Recovery Funds (“SLFRF”) Award Year: 01/01/23 – 12/31/23 CFDA Numbers: 21.027 Criteria OMB Uniform Guidance §200.318 – 200.319, states that the non-Federal entity must use its own documented procurement procedures which reflect applicable State, local and tribal laws and regulations, provided that the procedures confirm to applicable Federal law and standards and that all procurement transactions be conducted in a manner providing full and open competition. Condition During our procurement testing procedures, we selected 3 items purchased with SLFRF funds and reviewed the vendor activity report along with the purchase orders to ensure proper procurement procedures were followed. Through our testing, we identified one vendor being used for fire department equipment, which, in aggregate, exceeded the bid threshold. The purchases were made without the use of public bidding or through a State contract purchasing program. Cause The Borough utilized a vendor without competitive bidding and/or through a State contract agency. Effect The Borough made purchases in excess of the bid threshold without the use of competitive bidding or through a State contract purchasing program. Questioned Costs The purchases made from the vendor totaled $52,308.15. Recommendation That expenditures be monitored for compliance with the Local Public Contracts Law. Management’s View and Corrective Action Plan Management’s views and corrective action plan is included under separate cover and filed with the State of New Jersey.