Finding 1201551 (2025-010)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-03-30
Audit: 396119
Organization: City of Checotah (OK)

AI Summary

  • Core Issue: The City failed to follow federal procurement rules for a $322,000 contract, which should have gone out for bid.
  • Impacted Requirements: This oversight violates the Uniform Guidance, specifically 2 CFR Part 200, which mandates bidding for contracts over $250,000.
  • Recommended Follow-Up: Ensure all future contracts over $250,000 using federal funds are bid out properly to maintain compliance.

Finding Text

Finding 2025-010; Procurement Assistance Listing Number 21.027 Coronavirus State and Local Fiscal Recovery Funds Criteria: The City is required by the Uniform Guidance, 2 CFR Part 200, to go out for bid for contracts that exceed the simplified acquisition threshold ($250,000). Condition: During our testwork, we noted that a contract charged to the award totaling $322,000 did not follow the procurement requirements contained in the Uniform Guidance. Cause: The City was not aware of the federal purchasing requirements. Effect: The City is not in compliance with Uniformed Guidance procurement requirements. Questioned Costs: $204,780 Recommendation: We recommend that the City go out for bid for any contracts that are over $250,000 in which federal funds are to be used. Views of Responsive Officials and Planned Corrective Action: In the future, the City will solicit Requests for Proposals and/or Qualifications for any contracts that exceed $250,000 in which federal funding is involved in accordance with 2 CFR Part 200.

Corrective Action Plan

Views of Responsive Officials and Planned Corrective Action: In the future, the City will solicit Requests for Proposals and/or Qualifications for any contracts that exceed $250,000 in which federal funding is involved in accordance with 2 CFR Part 200.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1201548 2025-009
    Material Weakness Repeat
  • 1201549 2025-010
    Material Weakness Repeat
  • 1201550 2025-009
    Material Weakness Repeat
  • 1201552 2025-009
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $600,000
93.445 INDIAN HEALTH SERVICE SANITATION FACILITIES CONSTRUCTION PROGRAM $118,798