Audit 402450

The County should establish controls to ensure compliance with procurement law as it relates to federal expenditures. Procurements involving federal awards must comply with 2 CFR §§ 200.317–200.327. These sections require non-Federal entities to maintain written procurement procedures that reflect applicable State and local laws and regulations, provided that the procurements conform to applicable Federal law and the standards identified in Uniform Guidance. Requirements include full and open competition, appropriate documentation of procurement actions, cost or price analysis for procurements exceeding the Simplified Acquisition Threshold, and verification that vendors are not suspended or debarred. In addition, Mississippi counties are subject to state procurement requirements, which establish competitive bidding thresholds and procedures. Uniform Guidance requires that when procuring with federal funds, non-Federal entities must follow the more restrictive of federal, state, or local procurement requirements. During our test work of federal expenditures, we noted the County expended funds without obtaining the required competitive quotes or bids in accordance with federal procurement standards. The County did not have adequate internal controls in place to ensure procurement transactions charged to federal programs complied with both Uniform Guidance and Mississippi statutory requirements. Failure to comply with federal and state procurement requirements increases the risk of improper vendor selection and may result in questioned costs. Noncompliance could subject the County to repayment of federal funds or other administrative remedies. The County should strengthen internal controls over procurement activities involving federal awards to ensure compliance with both Uniform Guidance and Mississippi law. Specifically, the County should ensure procurements comply with competitive bidding requirements.