Audit 406398

Program All federal programs Criteria The City must comply with procurement standards set out at 2 CFR sections 200.318 through 200.326 within the Uniform Guidance. Condition The City’s procurement standards do not include all the essential elements as outlined in 2 CFR sections 200.318 through 200.326. In addition, the City did not retain adequate documentation for verification that vendors were not suspended or debarred parties. Questioned costs None noted. Context Although the City’s policy is not in conformity with all sections the federal Uniform Guidance criteria, the City did follow the established purchasing procedures for purchases for the City’s major programs. With respect to the verification that vendors are not suspended or debarred, the City provided documentation that vendors were reviewed on SAM.gov, but the documentation did not provide evidence of that there were no active exclusion records. Effect The City is at risk for noncompliance for expenditures of federal monies as it relates to federal procurement. Cause Unknown. Recommendation We recommend that the City update the procurement policies to include each of the criteria as set out in 2 CFR sections 200.318 through 200.326. We also recommend that the City retain documentation to support the verification check for suspended or debarred vendors. Views of responsible official and planned corrective actions The City agrees with the finding.