Finding 1088954 (2023-008)

Significant Deficiency Repeat Finding
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-12-02
Audit: 330302
Organization: County of Delta (MI)

AI Summary

  • Core Issue: The County has a significant deficiency in internal controls regarding procurement, failing to follow its own documented policy.
  • Impacted Requirements: Noncompliance with CFR Section 200.318(a) due to inadequate record-keeping and lack of documentation for procurement decisions.
  • Recommended Follow-Up: Implement controls to ensure adherence to the procurement policy and maintain complete contract files.

Finding Text

Finding Type: Significant Deficiency in Internal Controls and Noncompliance (Procurement, Suspension & Debarment) Federal Program: U.S. Department of Treasury – Coronavirus State and Local Fiscal Recovery Funds (AL #21.027) Criteria: The Code of Federal Regulations (CFR) Section 200.318(a) requires non-Federal entities to establish and use documented procurement procedures that conform to the procurement standards identified in Sections 200.317 through 200.327. Condition: While the County does have a written procurement policy that meets the requirements, the policy was not being followed. The County did not maintain records sufficient to detail the history of procurement including the rationale for the method of procurement, selection of contract type, contractor selection or rejection, or the basis for the contract price. The County did not maintain documentation to sufficiently support a written price analysis on one procurement tested. The County was unable to provide proposals from non-winning bidders and/or a price analysis when only one bid was received on two contracts tested. The County does not have formal procedures or controls in place to ensure written documentation of a cost analysis or a contract file are maintained. Cause: The County does not have controls in place to ensure that its procurement policy is being followed and that contract files are complete. Effect: As a result of this condition, the County did not fully comply with the Uniform Guidance. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the County implement controls to ensure the procurement policy is followed and complete contract files are maintained. Views of Responsible Officials: The County will work to implement controls to ensure the procurement policy is followed.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 512510 2023-006
    Material Weakness Repeat
  • 512511 2023-007
    Material Weakness Repeat
  • 512512 2023-008
    Significant Deficiency Repeat
  • 512513 2023-006
    Material Weakness Repeat
  • 512514 2023-007
    Material Weakness Repeat
  • 1088952 2023-006
    Material Weakness Repeat
  • 1088953 2023-007
    Material Weakness Repeat
  • 1088955 2023-006
    Material Weakness Repeat
  • 1088956 2023-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.06M
15.266 Payments in Lieu of Taxes $430,807
21.032 Local Assistance and Tribal Consistency Fund $416,906
20.106 Airport Improvement Program, Covid-19 Airports Programs, and Infrastructure Investment and Jobs Act Programs $313,135
10.665 Schools and Roads - Grants to States $150,480
93.563 Child Support Services $55,109
16.738 Edward Byrne Memorial Justice Assistance Grant Program $35,475
97.012 Boating Safety Financial Assistance $16,400
97.042 Emergency Management Performance Grants $16,299
16.922 Equitable Sharing Program $11,851
97.067 Homeland Security Grant Program $7,269
93.658 Foster Care Title IV-E $7,003