Finding 1160937 (2024-004)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-10-19

AI Summary

  • Core Issue: The District failed to include Buy America provisions in three contracts, indicating a material weakness in internal controls over compliance with federal procurement standards.
  • Impacted Requirements: Non-compliance with Uniform Guidance and 2 CFR sections 200.318 through 200.326, which outline necessary procurement procedures for federal programs.
  • Recommended Follow-Up: Management should create and implement written policies to ensure compliance with federal procurement requirements and continue coordination with Burleigh County for proper documentation.

Finding Text

2024-004 U.S. Department of Treasury Passed-Through Burleigh County COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Financial Assistance Listing No. 21.027 2024 Award Year Procurement and Suspension & Debarment Material Weakness in Internal Controls over Compliance Criteria – Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required. Condition – In our testing of procurement and suspension & debarment, it was identified that the District did not include Buy America provisions in three contracts. Cause – Lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections and controls were not adequately designed to ensure compliance with all of these requirements. Effect – Failure to properly procure services may result in noncompliance with the provisions of applicable requirements of federal programs. Questioned Costs – None reported Context/Sampling – Three out of three vendors were selected for testing. Repeat Finding from Prior Year(s) – No Recommendation – Management should implement written policy procedures to ensure they are properly procuring services that comply with the provisions of applicable requirements of federal programs. Views of Responsible Officials – There is no disagreement with the finding. The District is in the process of reviewing its procurement practices and intends to implement a formal policy in alignment with state and federal requirements. Coordination with Burleigh County will continue to ensure compliance and proper documentation of procurement activities.

Corrective Action Plan

The District is in the process of reviewing its procurement practices and intends to implement a formal policy in alignment with state and federal requirements. Coordination with Burleigh County will continue to ensure compliance and proper documentation of procurement activities.

Categories

Procurement, Suspension & Debarment Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1160938 2024-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.05M