Finding Text
2023-002 Procurement
Grantor: U.S. Department of Treasury
Award Name: Coronavirus State and local Fiscal Recovery Funds (“SLFRF”)
Award Year: 01/01/23 – 12/31/23
CFDA Numbers: 21.027
Criteria
OMB Uniform Guidance §200.318 – 200.319, states that the non-Federal entity must use its own documented procurement procedures which reflect applicable State, local and tribal laws and regulations, provided that the procedures confirm to applicable Federal law and standards and that all procurement transactions be conducted in a manner providing full and open competition.
Condition
During our procurement testing procedures, we selected 3 items purchased with SLFRF funds and reviewed the vendor activity report along with the purchase orders to ensure proper procurement procedures were followed. Through our testing, we identified one vendor being used for fire department equipment, which, in aggregate, exceeded the bid threshold. The purchases were made without the use of public bidding or through a State contract purchasing program.
Cause
The Borough utilized a vendor without competitive bidding and/or through a State contract agency.
Effect
The Borough made purchases in excess of the bid threshold without the use of competitive bidding or through a State contract purchasing program.
Questioned Costs
The purchases made from the vendor totaled $52,308.15.
Recommendation
That expenditures be monitored for compliance with the Local Public Contracts Law.
Management’s View and Corrective Action Plan
Management’s views and corrective action plan is included under separate cover and filed with the State of New Jersey.