Finding 1169317 (2024-004)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2026-01-16
Audit: 382268
Organization: CITY OF MAYVILLE (ND)
Auditor: BRADY MARTZ LLC

AI Summary

  • Core Issue: The City lacks a procurement policy that meets federal requirements for federal fund recipients.
  • Impacted Requirements: Compliance with federal statutes and 2 CFR Part 200 is not being met.
  • Recommended Follow-Up: The City should develop and implement a federal procurement manual to ensure compliance.

Finding Text

Suspension, and Debarment Identification of federal programs: Water & Waste Disposal Systems for Rural Communities (ALN 10.760) Criteria: An entity who receives federal funds is required to have documented procurement procedures that reflect applicable state and local laws and regulations, provided that the procurements confirm to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Condition: During testing, we noted the City does not have a procurement policy that follows federal requirements. Questioned costs: None Effect: The City is not in compliance with federal procurement requirements. Context: During testing, we noted the City does not have a procurement policy that follows federal requirements. Cause: Management oversight Repeat finding: No Recommendation: We recommend the City implement a procurement policy that follows federal requirements. Views of responsible officials of the auditee: A Federal Procurement manual will be created and put into place.

Corrective Action Plan

Corrective Action Taken or Planned: A Federal Procurement manual will be created and put into place. Contact person(s) responsible for correction action: Gail Olstad, City Auditor Anticipated Completion Date: Quarter 2, prior to the start of the 2025 audit

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1169316 2024-003
    Material Weakness Repeat
  • 1169318 2024-005
    Material Weakness Repeat
  • 1169319 2024-006
    Material Weakness Repeat
  • 1169320 2024-006
    Material Weakness Repeat
  • 1169321 2024-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.760 WATER AND WASTE DISPOSAL SYSTEMS FOR RURAL COMMUNITIES $2.50M
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $458,320
15.904 HISTORIC PRESERVATION FUND GRANTS-IN-AID $30,373