Finding Text
Assistance Listing Number, Federal Agency, and Program Name - ALN 21 .027, Department of the Treasury, Coronavirus State and Local Fiscal Recovery Fund
Federal Award Identification Number and Year - SLFRP2024-2001
Pass-through Entity - Not applicable
Finding Type - Material weakness and material noncompliance with laws
and regulations
Repeat Finding - No
Criteria - The City should ensure there is a process in place, prior to theprocurement of goods and services, to verify that the City has followed its
internal procurement policy pursuant to 2 CFR 200.319 and 200.320.
Condition - We identified 4 expenditures, during testing, that the City did not verify were in accordance with its internal procurement policy, pursuant to 2
CFR 200.319 and 200.320 prior to entering into contracts with award funds.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - From July 1, 2022 through June 30, 2023, any good or service purchased by the City is subject to the City's internal procurement policy,
pursuant to 2 CFR 200.319 and 200.320. We selected 22 expenditures for testing, and 4 lacked evidence of the City following its internal procurement
policy. However, based on our testing, we noted that all 4 expenditures were allowable under the terms of the grant, thereby creating no questioned costs.
Cause and Effect - The City is required to verify that there is a process in place to ensure all eligible expenditures adhere to its internal procurement
policy, pursuant to 2 CFR 200.319 and 200.320. The City did not complete this requirement due to override of preexisting controls implemented by the City.
Recommendation - We recommend that an additional internal control be put in place to ensure that all eligible expenditures adhere to the City's internal
procurement policy.
Views of Responsible Officials and Planned Corrective Actions - Procedures have already been put into place to ensure that each purchase adheres to the internal purchasing policies. City management and staff will continue to improve communication with and between departments to ensure all staff understand the purchasing policy.