Finding 1156773 (2024-003)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-09-30
Audit: 369103
Organization: City of Atwater (MN)

AI Summary

  • Core Issue: The City’s procurement procedures are outdated and do not meet federal requirements.
  • Impacted Requirements: Noncompliance with OMB Uniform Guidance (2 CFR § 200.318(a)) increases risk for federal awards.
  • Recommended Follow-Up: Revise procurement procedures to align with Minnesota statutes and federal standards.

Finding Text

Finding 2024-003 Procurement, Suspension and Debarment Program: ALN 66.458 Clean Water State Revolving Fund ALN 66.468 Drinking Water State Revolving Fund Criteria: As required by the OMB Uniform Guidance (2 CFR § 200.318(a)), a non-federal entity must use its own documented procurement procedures, provided that they conform to Federal law and the standards outlined in the Uniform Guidance. Condition: The City’s procurement procedures do not conform to Uniform Guidance requirements. Effect: There is an increased risk of noncompliance with federal awards. Questioned Costs: N/A Cause: The City has not revised procurement procedures for many years. Recommendation: We recommend that the City revise their procurement procedures to conform with Minnesota statutes and Uniform Guidance.

Corrective Action Plan

Procurement, Suspension and Debarment Program: Program: ALN 66.458 Clean Water State Revolving Fund ALN 66.468 Drinking Water State Revolving Fund Condition: The City’s procurement procedures do not conform to Uniform Guidance requirements. Corrective Action Planned: The City will update procurement procedures to conform with Minnesota statutes and Uniform Guidance. Officer Responsible for Ensuring CAP: Goldie Smith, Clerk/Treasurer Planned Completion Date: 12/31/2025

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1156772 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
66.468 Drinking Water State Revolving Fund $1.94M
66.458 Clean Water State Revolving Fund $1.50M
10.698 State & Private Forestry Cooperative Fire Assistance $5,000