Finding Text
Criteria or Specific Requirement: There are three types of procurement methods described in 2 CFR 200.320 that the City is required to follow under the Uniform Guidance: informal procurement methods (for micro-purchases and simplified acquisitions); formal procurement methods (through sealed bids or proposals); and noncompetitive procurement methods.
Condition: There are specific circumstances under the Uniform Guidance in which the City may use a noncompetitive procurement method. During our testing, we noted the City's use of the noncompetitive procurement method was inappropriate.
Questioned Costs: None.
Context: For one out of five samples tested, the City did not properly follow the procurement methods described in CFR 200.320. The City's municipal code allows for exceptions to the bidding requirements of the City's purchasing policy for engineering services. However, it is not one of the circumstances under the Uniform Guidance in which noncompetitive procurement can be used.
Cause: The department was not aware of the Uniform Guidance procurement requirements.
Effect: The City is not in compliance with the procurement requirements of the Uniform Guidance.
Recommendation: We recommend the City implement controls and procedures to ensure procurements with federal funds follow the Uniform Guidance requirements.
View of Responsible Officials: There is no disagreement with the audit finding.