Finding 1079500 (2023-005)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-10-17
Audit: 325029
Organization: Village of Leesburg (OH)

AI Summary

  • Core Issue: The Village did not obtain required price or rate quotations for small purchases, violating procurement regulations.
  • Impacted Requirements: Non-compliance with 2 CFR 200.320 could lead to unallowable purchases and misuse of funds.
  • Recommended Follow-Up: The Village must implement proper procurement procedures for small purchases to ensure compliance with Federal standards.

Finding Text

2 CFR 1000.10 gives regulatory effect to the Department of Treasury for 2 CFR 200.320 that states that the non-Federal entity must have and use documented procurement procedures, consistent with the standards of 2 CFR Sections 200.320, 200.317, 200.318, and 200.319. Furthermore, 2 CFR 200.320(a)(2) states that "small purchases are the acquisition of property or services, the aggregate dollar amount of which is higher than the micro-purchase threshold but does not exceed the simplified acquisition threshold. If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate by the non-Federal entity." During testing of the 2023 AL # 21.027 Covid 19 – Coronavirus State and Local Fiscal Recovery Funds, procurements from a vendor exceeded the micro-purchase threshold but did not exceed the Simplified Acquisition threshold, and the Village could not provide documentation supporting that they obtained price or rate quotations from an adequate number of qualified sources. Failure to adhere to the requirements of 2 CFR 200.320 could result in unallowable purchases, misuse of public funds, or Federal funding being used for purchases which are not subject to free and open competition. The Village should ensure they are following the appropriate Federal procurement methods when purchases fall within the small purchase threshold.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 503055 2023-003
    Material Weakness
  • 503056 2023-003
    Material Weakness
  • 503057 2023-004
    Material Weakness
  • 503058 2023-005
    Material Weakness
  • 1079497 2023-003
    Material Weakness
  • 1079498 2023-003
    Material Weakness
  • 1079499 2023-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $26,761