Finding 1167396 (2024-007)

Material Weakness Repeat Finding
Requirement
BI
Questioned Costs
-
Year
2024
Accepted
2025-12-31
Audit: 378442
Organization: Village of South Point (OH)

AI Summary

  • Core Issue: The Village lacks formal written policies required by the Uniform Guidance for cost allowability, technical evaluations, and procurement procedures.
  • Impacted Requirements: Non-compliance with 2 CFR § 200.302(b)(7), 2 CFR 200.320(b)(2), and 2 CFR 200.319(d) puts grant management at risk.
  • Recommended Follow-up: Establish and regularly update written policies; ensure all changes are approved by Council and documented in meeting minutes.

Finding Text

2 CFR § 200.302(b)(7) requires written procedures for determining the allowability of costs in accordance with Subpart E-Cost Principles of this part and the terms and conditions of the Federal award. 2 CFR 200.320(b)(2) requires non-federal entities to have a written method for conducting technical evaluations of the competitive proposals receive and for selecting contract recipients. 2 CFR 200.319(d) requires non-federal entities to have written procedures for procurement transactions to ensure all solicitations incorporate a clear and accurate description of the technical requirements for the material, product, or service to be procured and identify all requirements which the offerors must fulfill and all other factors to be used in evaluating bids or proposals. The Village was awarded grant monies under the Uniform Guidance (UG); however, the Village did not establish formal written policies required by the UG for the sections listed above. To help ensure compliance with the Uniform Guidance requirements, the Village should establish and maintain timely updated policies and, more importantly, implement procedure as specified by UG requirements for all grant monies received. Any changes to the Village's policies should also be formally approved by Council and documented within the minutes.

Corrective Action Plan

The Village will adopt all necessary policies.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1167394 2024-005
    Material Weakness Repeat
  • 1167395 2024-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
66.468 DRINKING WATER STATE REVOLVING FUND $644,833
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $519,295