Finding No. 2024-001: Preparation of Financial Statements and Schedule of Expenditures of Federal Awards
Federal Program Affected: All
Compliance Requirement: Reporting
Questioned Costs: None.
Condition and Cause: As in prior years, we were requested to draft the audited financial statements and related footnote disclosures as part of our regular audit services. Additionally, we were requested to prepare the Schedule of Expenditures of Federal Awards (SEFA). Auditing standards require auditors to communicate this situation to the City Council as an internal control deficiency. Ultimately, it is management’s responsibility to provide for the preparation of the City’s statements and footnotes, and the responsibility of the auditor to determine the fairness and presentation of those statements. From a practical standpoint, we do both for the City at the same time in connection with our audit. This is not unusual for municipalities of your size.
Criteria and Effect: It is our responsibility to inform the City Council that this deficiency could result in a material misstatement to the financial statements that would not have been prevented or detected by the City’s management.
Repeat Finding from Prior Year: Yes, prior year finding #2023-001.
Recommendation: We have instructed management to review a draft of the auditor prepared financials and SEFA in detail for their accuracy; we have answered any questions they might have and have encouraged research of any accounting guidance in connection with the adequacy and appropriateness of classification and disclosure in the City’s financial statements and SEFA. We are satisfied that the appropriate steps have been taken to provide the City with the completed financial statements and SEFA. It is the responsibility of management and the City Council to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations.
Response/Corrective Action Plan: See Corrective Action Plan
Finding No. 2024-001: Preparation of Financial Statements and Schedule of Expenditures of Federal Awards
Federal Program Affected: All
Compliance Requirement: Reporting
Questioned Costs: None.
Condition and Cause: As in prior years, we were requested to draft the audited financial statements and related footnote disclosures as part of our regular audit services. Additionally, we were requested to prepare the Schedule of Expenditures of Federal Awards (SEFA). Auditing standards require auditors to communicate this situation to the City Council as an internal control deficiency. Ultimately, it is management’s responsibility to provide for the preparation of the City’s statements and footnotes, and the responsibility of the auditor to determine the fairness and presentation of those statements. From a practical standpoint, we do both for the City at the same time in connection with our audit. This is not unusual for municipalities of your size.
Criteria and Effect: It is our responsibility to inform the City Council that this deficiency could result in a material misstatement to the financial statements that would not have been prevented or detected by the City’s management.
Repeat Finding from Prior Year: Yes, prior year finding #2023-001.
Recommendation: We have instructed management to review a draft of the auditor prepared financials and SEFA in detail for their accuracy; we have answered any questions they might have and have encouraged research of any accounting guidance in connection with the adequacy and appropriateness of classification and disclosure in the City’s financial statements and SEFA. We are satisfied that the appropriate steps have been taken to provide the City with the completed financial statements and SEFA. It is the responsibility of management and the City Council to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations.
Response/Corrective Action Plan: See Corrective Action Plan
Finding No. 2024-001: Preparation of Financial Statements and Schedule of Expenditures of Federal Awards
Federal Program Affected: All
Compliance Requirement: Reporting
Questioned Costs: None.
Condition and Cause: As in prior years, we were requested to draft the audited financial statements and related footnote disclosures as part of our regular audit services. Additionally, we were requested to prepare the Schedule of Expenditures of Federal Awards (SEFA). Auditing standards require auditors to communicate this situation to the City Council as an internal control deficiency. Ultimately, it is management’s responsibility to provide for the preparation of the City’s statements and footnotes, and the responsibility of the auditor to determine the fairness and presentation of those statements. From a practical standpoint, we do both for the City at the same time in connection with our audit. This is not unusual for municipalities of your size.
Criteria and Effect: It is our responsibility to inform the City Council that this deficiency could result in a material misstatement to the financial statements that would not have been prevented or detected by the City’s management.
Repeat Finding from Prior Year: Yes, prior year finding #2023-001.
Recommendation: We have instructed management to review a draft of the auditor prepared financials and SEFA in detail for their accuracy; we have answered any questions they might have and have encouraged research of any accounting guidance in connection with the adequacy and appropriateness of classification and disclosure in the City’s financial statements and SEFA. We are satisfied that the appropriate steps have been taken to provide the City with the completed financial statements and SEFA. It is the responsibility of management and the City Council to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations.
Response/Corrective Action Plan: See Corrective Action Plan
Finding No. 2024-001: Preparation of Financial Statements and Schedule of Expenditures of Federal Awards
Federal Program Affected: All
Compliance Requirement: Reporting
Questioned Costs: None.
Condition and Cause: As in prior years, we were requested to draft the audited financial statements and related footnote disclosures as part of our regular audit services. Additionally, we were requested to prepare the Schedule of Expenditures of Federal Awards (SEFA). Auditing standards require auditors to communicate this situation to the City Council as an internal control deficiency. Ultimately, it is management’s responsibility to provide for the preparation of the City’s statements and footnotes, and the responsibility of the auditor to determine the fairness and presentation of those statements. From a practical standpoint, we do both for the City at the same time in connection with our audit. This is not unusual for municipalities of your size.
Criteria and Effect: It is our responsibility to inform the City Council that this deficiency could result in a material misstatement to the financial statements that would not have been prevented or detected by the City’s management.
Repeat Finding from Prior Year: Yes, prior year finding #2023-001.
Recommendation: We have instructed management to review a draft of the auditor prepared financials and SEFA in detail for their accuracy; we have answered any questions they might have and have encouraged research of any accounting guidance in connection with the adequacy and appropriateness of classification and disclosure in the City’s financial statements and SEFA. We are satisfied that the appropriate steps have been taken to provide the City with the completed financial statements and SEFA. It is the responsibility of management and the City Council to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations.
Response/Corrective Action Plan: See Corrective Action Plan
Finding No. 2024-001: Preparation of Financial Statements and Schedule of Expenditures of Federal Awards
Federal Program Affected: All
Compliance Requirement: Reporting
Questioned Costs: None.
Condition and Cause: As in prior years, we were requested to draft the audited financial statements and related footnote disclosures as part of our regular audit services. Additionally, we were requested to prepare the Schedule of Expenditures of Federal Awards (SEFA). Auditing standards require auditors to communicate this situation to the City Council as an internal control deficiency. Ultimately, it is management’s responsibility to provide for the preparation of the City’s statements and footnotes, and the responsibility of the auditor to determine the fairness and presentation of those statements. From a practical standpoint, we do both for the City at the same time in connection with our audit. This is not unusual for municipalities of your size.
Criteria and Effect: It is our responsibility to inform the City Council that this deficiency could result in a material misstatement to the financial statements that would not have been prevented or detected by the City’s management.
Repeat Finding from Prior Year: Yes, prior year finding #2023-001.
Recommendation: We have instructed management to review a draft of the auditor prepared financials and SEFA in detail for their accuracy; we have answered any questions they might have and have encouraged research of any accounting guidance in connection with the adequacy and appropriateness of classification and disclosure in the City’s financial statements and SEFA. We are satisfied that the appropriate steps have been taken to provide the City with the completed financial statements and SEFA. It is the responsibility of management and the City Council to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations.
Response/Corrective Action Plan: See Corrective Action Plan
Finding No. 2024-004: Procurement, Suspension, and Debarment
Federal Program Affected: Coronavirus State and Local Fiscal Recovery Funds #21.027
Compliance Requirement: Procurement, Suspension, and Debarment
Questioned Costs: None
Condition and Cause: The City does not have a policy in place and is not obtaining price quotes from a reasonable number of sources for purchases greater than $10,000 but less than $35,000. Additionally, the City is not verifying vendors are not included on the suspended and debarred vendor list on www.sam.gov or other methods.
Criteria and Effect: In accordance with Part 200, Subpart D of the Uniform Guidance, for purchases that exceed the micro-purchase amount ($10,000) but do not exceed the simplified acquisition threshold ($250,000), price or rate quotations must be obtained from an adequate number of qualified sources. The City’s internal policy is to obtain bids for purchases exceeding $35,000. Additionally, in accordance with Part 200, Subpart C of the Uniform Guidance, recipient and subrecipients of federal funds are prohibited from contracting with or making subawards to parties that are suspended or debarred. Without proper verification, the City may unknowingly contract with a suspended or debarred entity.
Repeat Finding from Prior Year: No
Recommendation: The City should implement policies and obtain quotes from a reasonable number of vendors prior to purchasing when the acquisition exceeds $10,000. The City should verify vendors are not suspended or debarred. One method of verification is searching www.sam.gov annually and retaining records to support the search was performed.
Finding No. 2024-004: Procurement, Suspension, and Debarment
Federal Program Affected: Coronavirus State and Local Fiscal Recovery Funds #21.027
Compliance Requirement: Procurement, Suspension, and Debarment
Questioned Costs: None
Condition and Cause: The City does not have a policy in place and is not obtaining price quotes from a reasonable number of sources for purchases greater than $10,000 but less than $35,000. Additionally, the City is not verifying vendors are not included on the suspended and debarred vendor list on www.sam.gov or other methods.
Criteria and Effect: In accordance with Part 200, Subpart D of the Uniform Guidance, for purchases that exceed the micro-purchase amount ($10,000) but do not exceed the simplified acquisition threshold ($250,000), price or rate quotations must be obtained from an adequate number of qualified sources. The City’s internal policy is to obtain bids for purchases exceeding $35,000. Additionally, in accordance with Part 200, Subpart C of the Uniform Guidance, recipient and subrecipients of federal funds are prohibited from contracting with or making subawards to parties that are suspended or debarred. Without proper verification, the City may unknowingly contract with a suspended or debarred entity.
Repeat Finding from Prior Year: No
Recommendation: The City should implement policies and obtain quotes from a reasonable number of vendors prior to purchasing when the acquisition exceeds $10,000. The City should verify vendors are not suspended or debarred. One method of verification is searching www.sam.gov annually and retaining records to support the search was performed.
Finding No. 2024-004: Procurement, Suspension, and Debarment
Federal Program Affected: Coronavirus State and Local Fiscal Recovery Funds #21.027
Compliance Requirement: Procurement, Suspension, and Debarment
Questioned Costs: None
Condition and Cause: The City does not have a policy in place and is not obtaining price quotes from a reasonable number of sources for purchases greater than $10,000 but less than $35,000. Additionally, the City is not verifying vendors are not included on the suspended and debarred vendor list on www.sam.gov or other methods.
Criteria and Effect: In accordance with Part 200, Subpart D of the Uniform Guidance, for purchases that exceed the micro-purchase amount ($10,000) but do not exceed the simplified acquisition threshold ($250,000), price or rate quotations must be obtained from an adequate number of qualified sources. The City’s internal policy is to obtain bids for purchases exceeding $35,000. Additionally, in accordance with Part 200, Subpart C of the Uniform Guidance, recipient and subrecipients of federal funds are prohibited from contracting with or making subawards to parties that are suspended or debarred. Without proper verification, the City may unknowingly contract with a suspended or debarred entity.
Repeat Finding from Prior Year: No
Recommendation: The City should implement policies and obtain quotes from a reasonable number of vendors prior to purchasing when the acquisition exceeds $10,000. The City should verify vendors are not suspended or debarred. One method of verification is searching www.sam.gov annually and retaining records to support the search was performed.
Finding No. 2024-005: Written Uniform Guidance Policies
Federal Program Affected: All
Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Procurement and Suspension and Debarment
Questioned Costs: None
Condition and Cause: The City does not have formal written UG policies related to allowable cost/activities allowed, procurement, and suspension and debarment.
Criteria and Effect: The Uniform Guidance specifically requires entities to maintain a written policy for allowable costs and procurement. Not properly maintaining such policies leads to noncompliance with the Uniform Guidance.
Repeat Finding from Prior Year: No
Recommendation: We recommend the City develop written policies in accordance with the Uniform Guidance.
Finding No. 2024-005: Written Uniform Guidance Policies
Federal Program Affected: All
Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Procurement and Suspension and Debarment
Questioned Costs: None
Condition and Cause: The City does not have formal written UG policies related to allowable cost/activities allowed, procurement, and suspension and debarment.
Criteria and Effect: The Uniform Guidance specifically requires entities to maintain a written policy for allowable costs and procurement. Not properly maintaining such policies leads to noncompliance with the Uniform Guidance.
Repeat Finding from Prior Year: No
Recommendation: We recommend the City develop written policies in accordance with the Uniform Guidance.
Finding No. 2024-005: Written Uniform Guidance Policies
Federal Program Affected: All
Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Procurement and Suspension and Debarment
Questioned Costs: None
Condition and Cause: The City does not have formal written UG policies related to allowable cost/activities allowed, procurement, and suspension and debarment.
Criteria and Effect: The Uniform Guidance specifically requires entities to maintain a written policy for allowable costs and procurement. Not properly maintaining such policies leads to noncompliance with the Uniform Guidance.
Repeat Finding from Prior Year: No
Recommendation: We recommend the City develop written policies in accordance with the Uniform Guidance.
Finding No. 2024-005: Written Uniform Guidance Policies
Federal Program Affected: All
Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Procurement and Suspension and Debarment
Questioned Costs: None
Condition and Cause: The City does not have formal written UG policies related to allowable cost/activities allowed, procurement, and suspension and debarment.
Criteria and Effect: The Uniform Guidance specifically requires entities to maintain a written policy for allowable costs and procurement. Not properly maintaining such policies leads to noncompliance with the Uniform Guidance.
Repeat Finding from Prior Year: No
Recommendation: We recommend the City develop written policies in accordance with the Uniform Guidance.
Finding No. 2024-005: Written Uniform Guidance Policies
Federal Program Affected: All
Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Procurement and Suspension and Debarment
Questioned Costs: None
Condition and Cause: The City does not have formal written UG policies related to allowable cost/activities allowed, procurement, and suspension and debarment.
Criteria and Effect: The Uniform Guidance specifically requires entities to maintain a written policy for allowable costs and procurement. Not properly maintaining such policies leads to noncompliance with the Uniform Guidance.
Repeat Finding from Prior Year: No
Recommendation: We recommend the City develop written policies in accordance with the Uniform Guidance.
Finding No. 2024-001: Preparation of Financial Statements and Schedule of Expenditures of Federal Awards
Federal Program Affected: All
Compliance Requirement: Reporting
Questioned Costs: None.
Condition and Cause: As in prior years, we were requested to draft the audited financial statements and related footnote disclosures as part of our regular audit services. Additionally, we were requested to prepare the Schedule of Expenditures of Federal Awards (SEFA). Auditing standards require auditors to communicate this situation to the City Council as an internal control deficiency. Ultimately, it is management’s responsibility to provide for the preparation of the City’s statements and footnotes, and the responsibility of the auditor to determine the fairness and presentation of those statements. From a practical standpoint, we do both for the City at the same time in connection with our audit. This is not unusual for municipalities of your size.
Criteria and Effect: It is our responsibility to inform the City Council that this deficiency could result in a material misstatement to the financial statements that would not have been prevented or detected by the City’s management.
Repeat Finding from Prior Year: Yes, prior year finding #2023-001.
Recommendation: We have instructed management to review a draft of the auditor prepared financials and SEFA in detail for their accuracy; we have answered any questions they might have and have encouraged research of any accounting guidance in connection with the adequacy and appropriateness of classification and disclosure in the City’s financial statements and SEFA. We are satisfied that the appropriate steps have been taken to provide the City with the completed financial statements and SEFA. It is the responsibility of management and the City Council to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations.
Response/Corrective Action Plan: See Corrective Action Plan
Finding No. 2024-001: Preparation of Financial Statements and Schedule of Expenditures of Federal Awards
Federal Program Affected: All
Compliance Requirement: Reporting
Questioned Costs: None.
Condition and Cause: As in prior years, we were requested to draft the audited financial statements and related footnote disclosures as part of our regular audit services. Additionally, we were requested to prepare the Schedule of Expenditures of Federal Awards (SEFA). Auditing standards require auditors to communicate this situation to the City Council as an internal control deficiency. Ultimately, it is management’s responsibility to provide for the preparation of the City’s statements and footnotes, and the responsibility of the auditor to determine the fairness and presentation of those statements. From a practical standpoint, we do both for the City at the same time in connection with our audit. This is not unusual for municipalities of your size.
Criteria and Effect: It is our responsibility to inform the City Council that this deficiency could result in a material misstatement to the financial statements that would not have been prevented or detected by the City’s management.
Repeat Finding from Prior Year: Yes, prior year finding #2023-001.
Recommendation: We have instructed management to review a draft of the auditor prepared financials and SEFA in detail for their accuracy; we have answered any questions they might have and have encouraged research of any accounting guidance in connection with the adequacy and appropriateness of classification and disclosure in the City’s financial statements and SEFA. We are satisfied that the appropriate steps have been taken to provide the City with the completed financial statements and SEFA. It is the responsibility of management and the City Council to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations.
Response/Corrective Action Plan: See Corrective Action Plan
Finding No. 2024-001: Preparation of Financial Statements and Schedule of Expenditures of Federal Awards
Federal Program Affected: All
Compliance Requirement: Reporting
Questioned Costs: None.
Condition and Cause: As in prior years, we were requested to draft the audited financial statements and related footnote disclosures as part of our regular audit services. Additionally, we were requested to prepare the Schedule of Expenditures of Federal Awards (SEFA). Auditing standards require auditors to communicate this situation to the City Council as an internal control deficiency. Ultimately, it is management’s responsibility to provide for the preparation of the City’s statements and footnotes, and the responsibility of the auditor to determine the fairness and presentation of those statements. From a practical standpoint, we do both for the City at the same time in connection with our audit. This is not unusual for municipalities of your size.
Criteria and Effect: It is our responsibility to inform the City Council that this deficiency could result in a material misstatement to the financial statements that would not have been prevented or detected by the City’s management.
Repeat Finding from Prior Year: Yes, prior year finding #2023-001.
Recommendation: We have instructed management to review a draft of the auditor prepared financials and SEFA in detail for their accuracy; we have answered any questions they might have and have encouraged research of any accounting guidance in connection with the adequacy and appropriateness of classification and disclosure in the City’s financial statements and SEFA. We are satisfied that the appropriate steps have been taken to provide the City with the completed financial statements and SEFA. It is the responsibility of management and the City Council to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations.
Response/Corrective Action Plan: See Corrective Action Plan
Finding No. 2024-001: Preparation of Financial Statements and Schedule of Expenditures of Federal Awards
Federal Program Affected: All
Compliance Requirement: Reporting
Questioned Costs: None.
Condition and Cause: As in prior years, we were requested to draft the audited financial statements and related footnote disclosures as part of our regular audit services. Additionally, we were requested to prepare the Schedule of Expenditures of Federal Awards (SEFA). Auditing standards require auditors to communicate this situation to the City Council as an internal control deficiency. Ultimately, it is management’s responsibility to provide for the preparation of the City’s statements and footnotes, and the responsibility of the auditor to determine the fairness and presentation of those statements. From a practical standpoint, we do both for the City at the same time in connection with our audit. This is not unusual for municipalities of your size.
Criteria and Effect: It is our responsibility to inform the City Council that this deficiency could result in a material misstatement to the financial statements that would not have been prevented or detected by the City’s management.
Repeat Finding from Prior Year: Yes, prior year finding #2023-001.
Recommendation: We have instructed management to review a draft of the auditor prepared financials and SEFA in detail for their accuracy; we have answered any questions they might have and have encouraged research of any accounting guidance in connection with the adequacy and appropriateness of classification and disclosure in the City’s financial statements and SEFA. We are satisfied that the appropriate steps have been taken to provide the City with the completed financial statements and SEFA. It is the responsibility of management and the City Council to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations.
Response/Corrective Action Plan: See Corrective Action Plan
Finding No. 2024-001: Preparation of Financial Statements and Schedule of Expenditures of Federal Awards
Federal Program Affected: All
Compliance Requirement: Reporting
Questioned Costs: None.
Condition and Cause: As in prior years, we were requested to draft the audited financial statements and related footnote disclosures as part of our regular audit services. Additionally, we were requested to prepare the Schedule of Expenditures of Federal Awards (SEFA). Auditing standards require auditors to communicate this situation to the City Council as an internal control deficiency. Ultimately, it is management’s responsibility to provide for the preparation of the City’s statements and footnotes, and the responsibility of the auditor to determine the fairness and presentation of those statements. From a practical standpoint, we do both for the City at the same time in connection with our audit. This is not unusual for municipalities of your size.
Criteria and Effect: It is our responsibility to inform the City Council that this deficiency could result in a material misstatement to the financial statements that would not have been prevented or detected by the City’s management.
Repeat Finding from Prior Year: Yes, prior year finding #2023-001.
Recommendation: We have instructed management to review a draft of the auditor prepared financials and SEFA in detail for their accuracy; we have answered any questions they might have and have encouraged research of any accounting guidance in connection with the adequacy and appropriateness of classification and disclosure in the City’s financial statements and SEFA. We are satisfied that the appropriate steps have been taken to provide the City with the completed financial statements and SEFA. It is the responsibility of management and the City Council to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations.
Response/Corrective Action Plan: See Corrective Action Plan
Finding No. 2024-004: Procurement, Suspension, and Debarment
Federal Program Affected: Coronavirus State and Local Fiscal Recovery Funds #21.027
Compliance Requirement: Procurement, Suspension, and Debarment
Questioned Costs: None
Condition and Cause: The City does not have a policy in place and is not obtaining price quotes from a reasonable number of sources for purchases greater than $10,000 but less than $35,000. Additionally, the City is not verifying vendors are not included on the suspended and debarred vendor list on www.sam.gov or other methods.
Criteria and Effect: In accordance with Part 200, Subpart D of the Uniform Guidance, for purchases that exceed the micro-purchase amount ($10,000) but do not exceed the simplified acquisition threshold ($250,000), price or rate quotations must be obtained from an adequate number of qualified sources. The City’s internal policy is to obtain bids for purchases exceeding $35,000. Additionally, in accordance with Part 200, Subpart C of the Uniform Guidance, recipient and subrecipients of federal funds are prohibited from contracting with or making subawards to parties that are suspended or debarred. Without proper verification, the City may unknowingly contract with a suspended or debarred entity.
Repeat Finding from Prior Year: No
Recommendation: The City should implement policies and obtain quotes from a reasonable number of vendors prior to purchasing when the acquisition exceeds $10,000. The City should verify vendors are not suspended or debarred. One method of verification is searching www.sam.gov annually and retaining records to support the search was performed.
Finding No. 2024-004: Procurement, Suspension, and Debarment
Federal Program Affected: Coronavirus State and Local Fiscal Recovery Funds #21.027
Compliance Requirement: Procurement, Suspension, and Debarment
Questioned Costs: None
Condition and Cause: The City does not have a policy in place and is not obtaining price quotes from a reasonable number of sources for purchases greater than $10,000 but less than $35,000. Additionally, the City is not verifying vendors are not included on the suspended and debarred vendor list on www.sam.gov or other methods.
Criteria and Effect: In accordance with Part 200, Subpart D of the Uniform Guidance, for purchases that exceed the micro-purchase amount ($10,000) but do not exceed the simplified acquisition threshold ($250,000), price or rate quotations must be obtained from an adequate number of qualified sources. The City’s internal policy is to obtain bids for purchases exceeding $35,000. Additionally, in accordance with Part 200, Subpart C of the Uniform Guidance, recipient and subrecipients of federal funds are prohibited from contracting with or making subawards to parties that are suspended or debarred. Without proper verification, the City may unknowingly contract with a suspended or debarred entity.
Repeat Finding from Prior Year: No
Recommendation: The City should implement policies and obtain quotes from a reasonable number of vendors prior to purchasing when the acquisition exceeds $10,000. The City should verify vendors are not suspended or debarred. One method of verification is searching www.sam.gov annually and retaining records to support the search was performed.
Finding No. 2024-004: Procurement, Suspension, and Debarment
Federal Program Affected: Coronavirus State and Local Fiscal Recovery Funds #21.027
Compliance Requirement: Procurement, Suspension, and Debarment
Questioned Costs: None
Condition and Cause: The City does not have a policy in place and is not obtaining price quotes from a reasonable number of sources for purchases greater than $10,000 but less than $35,000. Additionally, the City is not verifying vendors are not included on the suspended and debarred vendor list on www.sam.gov or other methods.
Criteria and Effect: In accordance with Part 200, Subpart D of the Uniform Guidance, for purchases that exceed the micro-purchase amount ($10,000) but do not exceed the simplified acquisition threshold ($250,000), price or rate quotations must be obtained from an adequate number of qualified sources. The City’s internal policy is to obtain bids for purchases exceeding $35,000. Additionally, in accordance with Part 200, Subpart C of the Uniform Guidance, recipient and subrecipients of federal funds are prohibited from contracting with or making subawards to parties that are suspended or debarred. Without proper verification, the City may unknowingly contract with a suspended or debarred entity.
Repeat Finding from Prior Year: No
Recommendation: The City should implement policies and obtain quotes from a reasonable number of vendors prior to purchasing when the acquisition exceeds $10,000. The City should verify vendors are not suspended or debarred. One method of verification is searching www.sam.gov annually and retaining records to support the search was performed.
Finding No. 2024-005: Written Uniform Guidance Policies
Federal Program Affected: All
Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Procurement and Suspension and Debarment
Questioned Costs: None
Condition and Cause: The City does not have formal written UG policies related to allowable cost/activities allowed, procurement, and suspension and debarment.
Criteria and Effect: The Uniform Guidance specifically requires entities to maintain a written policy for allowable costs and procurement. Not properly maintaining such policies leads to noncompliance with the Uniform Guidance.
Repeat Finding from Prior Year: No
Recommendation: We recommend the City develop written policies in accordance with the Uniform Guidance.
Finding No. 2024-005: Written Uniform Guidance Policies
Federal Program Affected: All
Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Procurement and Suspension and Debarment
Questioned Costs: None
Condition and Cause: The City does not have formal written UG policies related to allowable cost/activities allowed, procurement, and suspension and debarment.
Criteria and Effect: The Uniform Guidance specifically requires entities to maintain a written policy for allowable costs and procurement. Not properly maintaining such policies leads to noncompliance with the Uniform Guidance.
Repeat Finding from Prior Year: No
Recommendation: We recommend the City develop written policies in accordance with the Uniform Guidance.
Finding No. 2024-005: Written Uniform Guidance Policies
Federal Program Affected: All
Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Procurement and Suspension and Debarment
Questioned Costs: None
Condition and Cause: The City does not have formal written UG policies related to allowable cost/activities allowed, procurement, and suspension and debarment.
Criteria and Effect: The Uniform Guidance specifically requires entities to maintain a written policy for allowable costs and procurement. Not properly maintaining such policies leads to noncompliance with the Uniform Guidance.
Repeat Finding from Prior Year: No
Recommendation: We recommend the City develop written policies in accordance with the Uniform Guidance.
Finding No. 2024-005: Written Uniform Guidance Policies
Federal Program Affected: All
Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Procurement and Suspension and Debarment
Questioned Costs: None
Condition and Cause: The City does not have formal written UG policies related to allowable cost/activities allowed, procurement, and suspension and debarment.
Criteria and Effect: The Uniform Guidance specifically requires entities to maintain a written policy for allowable costs and procurement. Not properly maintaining such policies leads to noncompliance with the Uniform Guidance.
Repeat Finding from Prior Year: No
Recommendation: We recommend the City develop written policies in accordance with the Uniform Guidance.
Finding No. 2024-005: Written Uniform Guidance Policies
Federal Program Affected: All
Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Procurement and Suspension and Debarment
Questioned Costs: None
Condition and Cause: The City does not have formal written UG policies related to allowable cost/activities allowed, procurement, and suspension and debarment.
Criteria and Effect: The Uniform Guidance specifically requires entities to maintain a written policy for allowable costs and procurement. Not properly maintaining such policies leads to noncompliance with the Uniform Guidance.
Repeat Finding from Prior Year: No
Recommendation: We recommend the City develop written policies in accordance with the Uniform Guidance.