FAC Explorer

Finding 1161438 (2024-007)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-10-27
Audit: 371295
Organization: City of Auburn, Maine (ME)
Auditor: RUNYON KERSTEEN OUELLETTE

AI Summary

  • Core Issue: The City failed to follow federal procurement standards, risking contracts with ineligible vendors and unfavorable terms.
  • Impacted Requirements: Inadequate documentation for bidding processes and lack of checks for vendor eligibility as per 2 CFR §200.320 and 2 CFR §180.300.
  • Recommended Follow-Up: Strengthen procurement procedures with consistent documentation, centralized oversight, and targeted training for staff.

Finding Text

2024-007 U.S. Department of the Treasury, For the period July 1, 2023, through June 30, 2024, Assistance Listing #21.027 – Internal Controls over State and Local Fiscal Recovery Fund Criteria: As required under 2 CFR §200.320, the City must follow Federal procurement standards to ensure contracts are procured at the lowest price and with adequate competition. In addition, as required by 2 CFR §180.300, the City is not allowed to use grant funds to contract with vendors who are suspended or disbarred from receiving Federal funds. Condition: Of the six contracts tested under the SLFRF program: • Three contracts lacked documentation demonstrating that appropriate bidding procedures were followed or that a cost or price analysis was performed prior to award. • Two contracts had no evidence that suspension and debarment procedures were followed, such as checking the System for Award Management (SAM.gov) or obtaining certifications from contractors. Cause: The City’s procurement documentation practices were inconsistent across departments. The high volume of SLFRF-funded projects and decentralized contract management contributed to lapses in maintaining required procurement records and verifying contractor eligibility. Effect: The City did not comply with federal procurement standards, increasing the risk of awarding contracts to ineligible vendors, procuring contracts with unfavorable terms, and potentially incurring unallowable costs. Recommendation: We recommend the City strengthen its procurement procedures by: • Ensuring all departments consistently document bidding processes and cost/price analyses. • Implementing centralized oversight or checklists to verify compliance with suspension and debarment requirements. • Providing targeted training to procurement staff on federal requirements under the Uniform Guidance. Questioned Costs: None.

Corrective Action Plan

Management Response/Corrective Action Plan: Prior to any purchase orders being issued, we will ensure that bidding procedures have taken place and that SAM.gov has been reviewed and documentation is attached.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1161422 2024-009
    Material Weakness Repeat
  • 1161423 2024-009
    Material Weakness Repeat
  • 1161424 2024-009
    Material Weakness Repeat
  • 1161425 2024-009
    Material Weakness Repeat
  • 1161426 2024-009
    Material Weakness Repeat
  • 1161427 2024-009
    Material Weakness Repeat
  • 1161428 2024-009
    Material Weakness Repeat
  • 1161429 2024-008
    Material Weakness Repeat
  • 1161430 2024-008
    Material Weakness Repeat
  • 1161431 2024-008
    Material Weakness Repeat
  • 1161432 2024-010
    Material Weakness Repeat
  • 1161433 2024-010
    Material Weakness Repeat
  • 1161434 2024-010
    Material Weakness Repeat
  • 1161435 2024-011
    Material Weakness Repeat
  • 1161436 2024-011
    Material Weakness Repeat
  • 1161437 2024-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 COVID-19 - Coronavirus State and Local Fiscal Recovery Funds $3.17M
84.425 COVID-19 - Elementary and Secondary School Emergency Relief III $2.28M
20.205 Highway Planning and Construction - Mill Street and Main Street $1.96M
14.218 Community Development Block Grant - Entitlement $1.55M
84.010 Title IA $1.07M
10.555 NATIONAL SCHOOL LUNCH PROGRAM $949,284
84.027 Special Education - Grants to States (IDEA, Part B) $708,495
20.205 Highway Planning and Construction - Hotel Rd $539,369
10.553 SCHOOL BREAKFAST PROGRAM $313,345
14.905 LEAD HAZARD REDUCTION DEMONSTRATION GRANT PROGRAM $230,209
84.367 Title IIA - Supporting Effective Instruction $225,545
84.287 21st Century - Community Learning Center $204,260
14.239 COVID-19 - Home Investment Partnership Program $165,200
84.425 COVID-19 - Literacy Grant $143,570
14.239 Home Investment Partnership Program $120,454
10.555 Donated Commodities $117,497
84.424 Title IV - Student Support and Academic Enrichment $78,041
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $77,002
10.555 State Administrative Expenses for Child Nutrition: Supply Chain Assistance $74,210
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $68,647
16.922 EQUITABLE SHARING PROGRAM $59,073
84.425 COVID-19 - Multilingual Learners Experiencing Homelessness $58,877
14.218 COVID-19 - Community Development Block Grant - Entitlement $55,722
84.425 COVID-19 - Elementary and Secondary School Emergency Relief II $53,649
97.067 HOMELAND SECURITY GRANT PROGRAM $29,560
20.205 Highway Planning and Construction - Turner Street Safety $27,758
84.365 Title III - Language Acquisition $26,064
84.173 Special Education - Preschool Grants (IDEA Preschool) $23,614
20.205 Highway Planning and Construction - Traffic Signals $21,916
10.558 Child and Adult Care Food Program $20,736
20.205 Highway Planning and Construction - Turner Dennison $17,988
84.002 Adult Basic Education $15,502
20.600 Speed Enforcement Program $11,512
84.010 Title IA - Program Improvement $10,961
16.607 Bullet Proof Vest $10,865
10.675 Project Canopy: Urban and Community Forestry Program $7,876
84.425 COVID-19 - Homeless Children and Youth II $7,784
16.738 Edward Byrne Justice Assistance Grant $6,458
10.649 COVID-19 - Pandemic EBT Administrative Costs: SNAP $5,224
10.555 After School Snack Program $953
14.218 Community Development Block Grant - Entitlement - School Department $911