Audit 388679

Assisted Listing Number/Federal Program/Granting Agency: 14.251 Economic Development Initiative Criteria: The Organization must have adequate controls in place over compliance with procurement requirements. Statement of Condition: As part of our review of the Economic Development program, we noted there were no procurement process performed during the selection of the architect. Questioned Costs: It is not practicable to estimate questioned costs. Cause: The Organization relied on developer, a third party, for compliance with requirements, the developer, a third party, did not have a procurement policy and was not aware of compliance requirements related to procurement. Effect or Possible Effect and Perspective: The Organization did not comply with procurement requirements in the selection of the architect. Repeat Finding: A repeat finding. Recommendation: We recommend the Organization review all compliance requirements with the Economic Development Initiative grant program themselves and not rely on developer, a third party, to ensure all compliance requirements are being followed. Views of Responsible Officials: Paula Maden, agrees, via the corrective action plan.