Audit 396119

Finding 2025-010; Procurement Assistance Listing Number 21.027 Coronavirus State and Local Fiscal Recovery Funds Criteria: The City is required by the Uniform Guidance, 2 CFR Part 200, to go out for bid for contracts that exceed the simplified acquisition threshold ($250,000). Condition: During our testwork, we noted that a contract charged to the award totaling $322,000 did not follow the procurement requirements contained in the Uniform Guidance. Cause: The City was not aware of the federal purchasing requirements. Effect: The City is not in compliance with Uniformed Guidance procurement requirements. Questioned Costs: $204,780 Recommendation: We recommend that the City go out for bid for any contracts that are over $250,000 in which federal funds are to be used. Views of Responsive Officials and Planned Corrective Action: In the future, the City will solicit Requests for Proposals and/or Qualifications for any contracts that exceed $250,000 in which federal funding is involved in accordance with 2 CFR Part 200.

Finding 2025-009; Reporting All Assistance Listing Numbers and Federal Agencies Criteria: The Uniform Guidance requires the City to prepare a schedule of expenditures of federal awards (SEFA) for the period. The SEFA should include each federal program’s assistance listing number and the total federal awards expended for that assistance listing number. Condition: The City’s internal record keeping did not adequately separate federal award expenditures for each ALN, but instead combined federal awards with separate ALNs. Cause: The City obtained multiple federal, tribal, and state funding streams for multiple large projects. Due to the complexities and numerous funding streams, certain grants were improperly misclassified. Effect: Errors in preparing the SEFA can lead to improper major program determination that determines the necessary audit of compliance over those federal programs. Questioned Costs: None Recommendation: We recommend that the City perform a thorough review of its SEFA to verify it includes all federal expenditures of grant programs and excludes state awards. Views of Responsive Officials and Planned Corrective Action: In the future, on all projects involving the use of federal funding, the City will pay careful attention to projects with multiple funding sources to ensure that all funds are accounted for by source to ensure accurate source allocation and accounting.