Audit 394266

Procurement Federal Agency: Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP0128 - 2021 Award Period: 6/7/2021 - 12/31/2026 Type of Finding: Significant Deficiency in Internal Control over Compliance - Other Matters Criteria or specific requirement: The City is required by local/federal policy to solicit competitive quotations for contracts over $10,000. Condition: The City utilized a noncompetitive procurement with a bid waiver. However, the rationale did not meet the criteria for a noncompetitive procurement with federal funds. Questioned costs: $23,750 Context: The City did not utilize the appropriate procurement method for 1 out of 8 selections tested. Cause: The small-business beneficiary of this project would have suffered significant losses had the project been delayed in order for a competitive procurement to take place. Due to the urgency/timeliness to maintain the schedule, a bid waiver was obtained; however, the rationale for the bid waiver does not comply with federal procurement standards. Effect: Immaterial noncompliance with federal program requirements. Repeat Finding: No Recommendation: We recommend that the City review its procurement processes to ensure they comply with federal guidance. Views of responsible officials: Management agrees with this finding.

Procurement Federal Agency: Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP0128 - 2021 Award Period: 6/7/2021 - 12/31/2026 Type of Finding: Significant Deficiency in Internal Control over Compliance - Other Matters Criteria or specific requirement: Purchases in excess of $25,000 will be made pursuant to the formal bidding requirements established in Chapter VIII - C-1 of the City Charter. The City Manager is required to sign contracts prior to the issuance of a purchase order when the sealed bidding method of procurement is utilized. Condition: The contract was signed by the vendor and returned to the City, but was not signed by the City Manager prior to the issuance of the related purchase order. Questioned costs: None noted. Context: The City did not have the proper approval on the executed contract for 1 out of 8 selections tested. Cause: The executed contract was sent back to the City from the contractor; however, the City Manager did not sign upon return from the contractor and the project proceeded without the proper approval. Effect: Procurement risk for noncompliance if the proper approvals are not obtained. Repeat Finding: No Recommendation: We recommend that the City review its procurement controls to ensure they obtain the proper approvals to comply with local policy. Views of responsible officials: Management agrees with this finding.

Reporting Federal Agency: Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP0128 - 2021 Award Period: 6/7/2021 - 12/31/2026 Type of Finding: Significant Deficiency in Internal Control over Compliance - Other Matters Criteria or specific requirement: Project and Expense Reports are due on a regular, recurring basis after the Interim Reports for Tier 2 SLFRF recipients (due by January 31, 2022, and then 30 days after the end of each quarter thereafter). Condition: The SLFRF Project and Expense Report due October 30, 2024, was submitted late on November 13, 2024. This report should have been submitted 30 days after the quarter ending September 30, 2024 (October 30). Questioned costs: None noted. Context: The City did not submit the Project and Expense report timely for 1 out of 2 reports tested. Cause: The City was unable to submit the report timely because of issues with the Treasury's portal. The City's consultant called Treasury on October 18, 2024, leaving a detailed message requesting a call back to address the City's portal reporting concerns. The City did not receive a response from Treasury. Treasury verbally acknowledged in webinars conducted since then of its awareness of reporting portal recipient concerns received and have addressed through its release of April and July 2025 user and reporting guides. Effect: Noncompliance with the SLFRF reporting deadline for Tier 2 recipients. Repeat Finding: No Recommendation: We recommend that the City review its reporting processes and related controls to ensure reporting requirements are submitted timely. Views of responsible officials: Management agrees with this finding.