Finding Text
Finding No. 2025-005 – Procurement Federal agency: US Treasury Federal program title: Covid 19 – State and Local Fiscal Recovery Fund Listing Number: 21.027 Pass-Through Agency: N/A Award Period: March 3, 2021 through December 31, 2024 Type of Finding: Significant Deficiency in Internal Control and Other Matter Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement. The County should have internal controls designed to ensure compliance with those provisions. The County is required to have documentation and follow procurement requirements including obtaining price or rate quotations from an adequate number of qualified sources for small purchases and sealed bids. Condition: During our testing, we noted the County did not have internal controls designed to ensure compliance with federal procurement requirements. Questioned Costs: None Context: We noted this condition in 2 out of 5 contracts tested. The 2 contracts should have gone through the competitive procurement process, but there was no supporting evidence that this took place. In effect, these contracts were noncompetitive procurements. Effect: Noncompliance could lead to loss of funding. Cause: The County was unaware of the specific requirement for the related grant before entering into agreements. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the County review its policies and procedures to adequately document procurement transactions and follow applicable procurement policies. Views of Responsible Officials: There is no disagreement with the audit finding. The Finance Committee will review and update the County Purchasing Ordinance to include language to address this issue.