Audit 33332

Program Titles: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) ALN: 21.027 Pass-through Entity: City of Roanoke, Virginia Compliance Requirement: Procurement Finding Type: Noncompliance and Material Weakness Criteria: Expenditures under the program must meet procurement criteria identified in Uniform Guidance and document support that this has been met. Condition: The Organization entered into a construction contract that exceeded purchasing thresholds identified under Uniform Guidance and did not obtain sealed bids as required. Questioned Costs: Unknown Context: he Organization had federal expenditures totaling $1,221,042 in this program during 2022 and$811,658 of same were a portion of the construction contract that was not properly bid. Effect: Unable to determine that amounts reported as expended under the program meet procurement requirements. Cause: This was an unusual grant for the Organization received during the pandemic and administration overlooked the requirements to obtain bids as necessary. Recommendation: Management should implement policies and procedures to ensure that purchases are made in accordance with procurement requirements for the program. Views of Responsible Officials: Members of the Organization's Board work in the construction industry and evaluated the proposal provided by the hired construction company for reasonableness in comparison to local industry cost averages. The proposal was considered a good value and the contract signed in order to move quickly to further the mission of the Organization during the COVID-19 pandemic. The Organization expanded efforts to provide economical local food options to neighborhoods with limited incomes during the COVID-19 pandemic. Further, the procurement requirements were not clear at the time of grant award and updated guidance was was not provided to management of the Organization.

Program Titles: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) ALN: 21.027 Pass-through Entity: City of Roanoke, Virginia Compliance Requirement: Procurement Finding Type: Noncompliance and Material Weakness Criteria: Expenditures under the program must meet procurement criteria identified in Uniform Guidance and document support that this has been met. Condition: The Organization entered into a construction contract that exceeded purchasing thresholds identified under Uniform Guidance and did not obtain sealed bids as required. Questioned Costs: Unknown Context: he Organization had federal expenditures totaling $1,221,042 in this program during 2022 and$811,658 of same were a portion of the construction contract that was not properly bid. Effect: Unable to determine that amounts reported as expended under the program meet procurement requirements. Cause: This was an unusual grant for the Organization received during the pandemic and administration overlooked the requirements to obtain bids as necessary. Recommendation: Management should implement policies and procedures to ensure that purchases are made in accordance with procurement requirements for the program. Views of Responsible Officials: Members of the Organization's Board work in the construction industry and evaluated the proposal provided by the hired construction company for reasonableness in comparison to local industry cost averages. The proposal was considered a good value and the contract signed in order to move quickly to further the mission of the Organization during the COVID-19 pandemic. The Organization expanded efforts to provide economical local food options to neighborhoods with limited incomes during the COVID-19 pandemic. Further, the procurement requirements were not clear at the time of grant award and updated guidance was was not provided to management of the Organization.