Finding 1205812 (2024-005)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2026-04-02
Audit: 397558
Organization: City of Tower, Minnesota (MN)
Auditor: SCHUTZ CPA LTD

AI Summary

  • Issue: The City awarded construction contracts over $175,000 without obtaining required sealed bids.
  • Requirements: Minn. Statute Sec. 471.345 mandates sealed bids for contracts above this threshold.
  • Follow-up: Ensure the City solicits bids or uses alternative procurement methods, retains documentation, and includes discussions in Council meeting minutes.

Finding Text

Condition: The City contracted for construction improvements on several projects without providing evidence that sealed bids were obtained and did not use the alternative procurement process.Criteria: As required by Minn. Statute Sec. 471.345 for contracts estimated to be over $175,000 are required to solicit sealed bids. Cause: The City contracted for construction improvements over the $175,000 but did not solicit sealed bids. Effect: Contracts in excess of $175,000 could be improperly awarded. Recommendation: The City must solicit bids or determine weighting criteria and be trained to utilize the alternative procurement process for construction projects that are estimated to be over $175,000. Documentation should be retained on the bidding process and results of the process. Discussions should also be included in the Council meeting minutes.

Corrective Action Plan

Management will ensure purchases and construction projects are made in compliance with Minnesota Statute Sec 471.345.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1205808 2024-001
    Material Weakness Repeat
  • 1205809 2024-002
    Material Weakness Repeat
  • 1205810 2024-003
    Material Weakness Repeat
  • 1205811 2024-004
    Material Weakness Repeat
  • 1205813 2024-006
    Material Weakness Repeat
  • 1205814 2024-007
    Material Weakness Repeat
  • 1205815 2024-008
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.864 GRANT PROGRAM TO ESTABLISH A FUND FOR FINANCING WATER AND WASTEWATER PROJECTS $2.78M
10.933 WETLAND MITIGATION BANKING PROGRAM $397,415
93.569 COMMUNITY SERVICES BLOCK GRANT $49,400
84.425 EDUCATION STABILIZATION FUND $4,543
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $3,838