Audit 366350

2024-003 Federal Grants Management - Procurement Federal Agency: Department of the Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agency: Michigan Department of Treasury Type of Finding: Material Weakness in Internal Control over Compliance and Other Matter Criteria or Specific Requirement: Per 2 CFR §200.318–§200.320, non-federal entities must use documented procurement procedures that reflect applicable local, state, and federal laws and regulations. These procedures must include methods for procurement, thresholds, and documentation requirements such as solicitation of quotes, sealed bids, and board approvals. Condition: The County has established policies and procedures in place including related controls over procurement. However, documentation is not retained to ensure compliance with requirements of Uniform Guidance. Questioned Costs: None. Context: While performing audit procedures, it was noted that the County did not follow established policies regarding procurement. Several transactions out of the selected samples lacked appropriate documentation. This was a statistically valid sample. Cause: While the County has policies over procurement, it did not consistently follow its internal procurement procedures or Uniform Guidance for documentation retention. Effect: Without sufficient documentation, the County cannot demonstrate that procurement transactions were conducted in accordance with Uniform Guidance. This increases the risk of noncompliance and potential disallowance of costs. Repeat Finding: No. Recommendation: We recommend the County review and follow their procurement policy. View of Responsible Officials: There is no disagreement with the finding.