Finding Text
Finding 2025-003 - Procurement - Significant Deficiency Name of Federal Agency: Department of the Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: HS 2025-105, HS 2025-209, HS 2024-202. Program year is 2025. Name of Pass-through Entity (if applicable): City of Cambridge Department of Housing and Community Development Criteria: In accordance with §200.318(a), General Procurement Standards, a nonfederal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations, provided that the procurements conform to applicable federal law and the standards identified in General Procurement Standards. Additionally, §200.318(i) states that the nonfederal entity must maintain records sufficient to detail the history of the procurement. Condition: During our testing, we noticed that the Agency did not have a written procurement policy that complied with federal requirements. The Agency could not provide adequate supporting documentation which was completed at the time of the procurement transaction. Cause: The Agency did not have adequate internal controls to ensure that they complied with federal procurement standards. Effect or Potential Effect: Failure to perform procurement procedures in accordance with a written policy that complies with the Uniform Guidance could result in the procurement being disallowed. Questioned Costs: Not applicable. Context: For 100% of the procurement population (total of 1), management could not provide supporting documentation which was completed at the time of the procurement transaction. Identification as a Repeat Finding: This is a repeat finding (see prior year finding number: 2024-003). Recommendation: We recommend that the Agency establish written procurement policies and internal controls around procurement. Views of Responsible Officials: Management acknowledges that certain internal controls did not operate effectively during the year ended June 30, 2025. Management is in the process of implementing additional controls to ensure a stable control environment that complies with procurement requirements.