Finding Text
#2025-006: Written Uniform Guidance Policies Federal Program Affected: All Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Procurement and Suspension and Debarment Questioned Costs: None Condition and Cause: The City does not have formal written UG policies related to allowable cost/activities allowed, procurement, and suspension and debarment. Additionally, the City did not obtain price quotes from a reasonable number of sources prior to contracting preliminary engineering work for the Duff Avenue and 7th Avenue projects. Internal policy is to obtain bids for projects in excess of $35,000, however this was not achieved for the engineering work. Criteria and Effect: The Uniform Guidance specifically requires written policies related to allowable costs/cost principles, procurement, and suspension and debarment. Not properly maintaining such policies leads to noncompliance with the Uniform Guidance. Additionally, for any contracted services that exceed the micro-purchase amount ($10,000) but does not exceed the simplified acquisition threshold ($250,000), price or rate quotations must be obtained from an adequate number of qualified sources; this includes engineering contracts. Repeat Finding from Prior Year: Yes, prior year finding #2024-005. Recommendation: We recommend the City develop written policies in accordance with the Uniform Guidance and obtain quotes from a reasonable number of vendors prior to purchasing when the acquisition exceeds $10,000. Response/Corrective Action Plan: The City agrees with the above finding. See Corrective Action Plan.