Finding 1170357 (2025-001)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-01-22

AI Summary

  • Core Issue: The Town's procurement policy is outdated and needs to be updated to comply with federal guidelines.
  • Impacted Requirements: Compliance with the Uniform Guidance (2 CFR Part 200) for procurement practices is necessary.
  • Recommended Follow-Up: The Town should finalize and implement the updated procurement policy, ensuring it addresses dollar thresholds and conflict of interest management.

Finding Text

Federal Program and Award: STATE AND LOCAL FISCAL RECOVERY FUNDS The objective of the State and Local Fiscal Recovery Funds is a program authorized by the American Rescue Plan Act, and delivers $350 billion to state, territorial, local, and Tribal governments across the country to support their response to and recovery from the COVID-19 public health emergency. CFDA Number: 21.027 Pass-Through Entity: None Subrecipient Information: None Criteria: The Uniform Guidance (2 CFR Part 200) specific to this specific CFDA number, 21.027, requires that the grantee maintain and follow a procurement policy that meets the required federal guidelines. Type of Compliance Requirement: Procurement Suspension and Debarment Direct or Indirect: Direct Condition: The Town’s current approved procurement policy is out of date and is in the process of being updated to meet all the related federal requirements. Cause: The Town was unable to complete and approve the new procurement policy but did follow a competitive bid process for all larger construction projects. Effect: None – we found no issues with the Town’s overall competitive bid process. Only that the written policy was out of date. Questioned Costs: None Prior Year Finding: No Recommendation: The Town should continue to work through the updated procurement policy, approve it, and implement it into the Town’s normal practice as soon as possible. The new policy should cover the respective dollar thresholds as outlined in the Uniform Guidance as well as the handling of conflicts of interest which are common in small rural communities.

Corrective Action Plan

CORRECTIVE ACTION ITEM - Finding 2025-001: Procurement Policy Individual Responsible: Corina Daley, Town Treasurer Anticipated Completion Date: March 31, 2025 Corrective Action/Management Response: The Town is in the final stages of reviewing its updated procurement policy and expects to have it completed very soon. The Town has been following normal procedures which include following a competitive bid process, identifying and mitigating any conflicts of interest that arise.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $953,689
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $155,497
20.205 HIGHWAY PLANNING AND CONSTRUCTION $30,826