Finding 1161676 (2024-001)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-10-31
Audit: 371593
Organization: TOWN OF RAYNHAM (MA)

AI Summary

  • Core Issue: The Town awarded a contract without following required competitive procurement procedures, violating federal guidelines.
  • Impacted Requirements: The lack of documentation for competitive procurement means the $425,000 charged to the grant may be considered unallowable costs.
  • Recommended Follow-up: The Town should ensure compliance with procurement procedures for all federal contracts and conduct a cost analysis to validate the charges made.

Finding Text

2024-001 U.S. Department of the Treasury Passed-through Bristol County, Massachusetts COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – ALN 21.027 Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Condition: The Town’s procurement files did not contain documentation regarding competitive procurement procedures for one contract. The Town, through the Raynham Center Water District, awarded a contract for final design services for two water treatment plants to a vendor that had previously provided preliminary evaluations for the plants, without performing competitive procurement procedures. Context: Procurement was not documented for one of the four contracts selected. The sample was not a statistically valid sample. Cause: The Town did not follow its established policy regarding federal procurement as the Town relied on State procurement exemptions which do not apply to this award. Effect: The Town charged $425,000 to the grant award from this contract that did not adhere to federal procurement requirements which could result in unallowable costs. Questioned Costs: Not determined, as the Town has not performed a cost analysis of the contract. Repeat Finding from Prior Year: No. Recommendation: The Town should adhere to its grant award procedures to perform competitive procurement procedures on all applicable contracts for goods and services charged to Federal awards. The Town should also complete a cost analysis to justify the amount charged to the award and adjust costs if necessary. Alternatively, the Town could contact the pass-through agency to re-allocate these expenditures to other properly procured and obligated project expenditures. Views of Responsible Official: Management agrees with the finding.

Corrective Action Plan

Condition: The Town’s procurement files did not contain documentation regarding competitive procurement procedures for one contract. The Town, through the Raynham Center Water District, awarded a contract for final design services for two water treatment plants to a vendor that had previously provided preliminary evaluations for the plants, without performing competitive procurement procedures. Corrective Action Planned: The Town will implement policies and procedures to ensure a competitive procurement is performed in accordance with federal procurement guidelines for all applicable contracts paid with federal funds. Anticipated Completion Date: August 2025 Contact: Christopher P. Laviolette, CPA, Finance Director/Town Accountant

Categories

Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Other Findings in this Audit

  • 1161675 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $630,171
97.083 STAFFING FOR ADEQUATE FIRE AND EMERGENCY RESPONSE (SAFER) $190,471
97.044 ASSISTANCE TO FIREFIGHTERS GRANT $6,607
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $4,950
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $4,539
97.067 HOMELAND SECURITY GRANT PROGRAM $3,483