Finding Text
2024-005 - PROCUREMENT, SUSPENSION & DEBARMENT: Procurement Policy
Federal Program Information:
US Department of Agriculture
Direct Award
ALN: - 10.760 Water and Waste Disposal Systems for Rural Communities
Criteria: Per 2 CFR Section 200.214, non-federal entities are subject to the nonprocurement
and suspension regulations restricting awards, subawards, and contracts
with certain parties that are debarred or suspended.
Condition: The Town does not have a formal procedure to determine that contractors
are not debarred, suspended or otherwise excluded or ineligible for participation in
Federal assistance programs or activities.
Cause: Town personnel were unaware of this requirement.
Effect: Transactions could occur that did not comply with federal regulations.
Identification of Questioned Costs: None identified.
Context: The finding was based on requesting the Town’s policies and procedures
related to federal compliance and therefore was not the result of a statistical sample.
Repeat Finding: This is a repeat finding of 2023-003.
Recommendation: The auditor recommends that the Town obtain an understanding of
the required procedures in the Code of Federal Regulations as applicable to its federal
programs, create and formally adopt those required procedures.
Views of Responsible Officials and Corrective Action Plan: Please see the Corrective
Action Plan issued by Town of Bridgewater, Vermont.