Finding 1076561 (2023-007)

Programs Affected: AL 66.458 – Clean Water State Revolving Fund – Award Year 2022/2023 Criteria: 2 CFR 200 Subpart D Section 200.317-326 “Procurement Standards” details the requirement for a non-Federal entity to have a documented procurement policy, and the standards for such a policy. Condition: Vernon Homes made attempts to obtain bids for the federally funded project, however, procurement policy testing was not able to be completed as the client does not have a formal procurement policy. Cause: Vernon Homes' does not have a documented procurement policy. Questioned Costs: None. Effect: Without a formal policy addressing the process of procurement, there is risk for non-prudent use of federal funds. Recommendation: BerryDunn recommends implementing a formal procurement policy as required and outlined in the 2 CFR 200 Subpart D Section 200.317. Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See attached Corrective Action Plan.