Finding 1102828 (2024-002)

Criteria: For purchases greater than the micro-purchase threshold recipients of federal funds must obtain quotes from an adequate number of qualified sources. Noncompetitive procurement is allowed only under specific circumstances. The recipient must maintain records documenting the history of the procurement including the method of procurement and the rationale for the method. Condition: Our testing noted that two purchases from one vendor were made without obtaining multiple quotes. Documentation for the use of non-competitive procurement was not maintained. Questioned Costs: None noted. Context: CLA inspected 5 purchases and for 2 of those contracts totaling $51,201, the bid/quote process was not followed and justification for the use of non-competitive procurement was not documented prior to the disbursement of federal funds. Cause: The city determined that the procurements were sole source, meaning the contractor used was the only option available, and were not aware that documentation of this determination was required. Effect: The city could have been out of compliance with grant requirements. Repeat Finding: This is not a repeat finding. Recommendation: CLA recommends the City implement procedures to ensure that federal guidance is followed relating to procurement. Views of responsible officials: There is no disagreement with the audit findings.