Finding 1061927 (2023-004)

Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: Unknown Award Period: March 3, 2021 – December 31, 2026 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The Town should have internal controls designed to ensure compliance with those provisions. Appendix II to Part 200 addresses contract provisions requirements and 2 CFR section 200.320 (c) addresses the noncompetitive procurement circumstances. Condition: Internal controls were not in place to ensure that all vendors had a formal contract in place or were selected in accordance with Uniform Guidance. Questioned costs: Under reportable limit Context: 1 of the 2 vendors tested did not have a formal contract in place. 1 of the 2 vendors did not follow federal procurement requirements and utilized state procurement exemptions. Cause: Procedures were not in place to ensure federal procurement requirements were followed. Effect: Noncompliance with federal procurement, suspension, and debarment compliance requirements. Recommendation: We recommend the Town implement controls that ensure adherence to the procurement requirements of the Uniform Guidance. Views of responsible officials: There is no disagreement with the audit finding.