Finding Text
Assistance Listing # 21.027 – COVID-19 Coronavirus State and Local Fiscal Recovery Funds
Fiscal year finding initially occurred: 2024
Criteria
In accordance with 2 CFR 200.320, the City of Scott is required to formally bid contracts that exceed $250,000.
Condition
The City expended $261,009 of Coronavirus State and Local Fiscal Recovery Funds on a contract that exceeded the required threshold but was not formally bid.
Cause
The City expended federal funds on contracts that were not properly bid by federal guidelines.
Effect
As a result, the City was not in compliance with procurement requirements with questioned costs totaling $261,009.
Context
A sample of 19 transactions were selected for audit from a population of 29 disbursements. The test found that a vendor was not properly contracted. This resulted in questioned costs of $261,009.
Recommendation
The City should review their policies and procedures to ensure that all contracts that have federal expenditures are properly bid in accordance with 2 CFR 200.320.
Management’s Corrective Action Plan
The City of Scott will review their policies and procedures to ensure that all contracts that have federal expenditures are properly bid in accordance with 2 CFR 200.320.