Finding 1213591 (2025-001)

Noncompliant Procurement Policy Federal Program Information: Funding agency: U.S. Environmental Agency Title: Drinking Water State Revolving Funds AL number: 66.468 Criteria or Specific Requirement: According to 2 CFR §200.318(a), non-Federal entities must use their 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 2 CFR §200.317 through 2 CFR §200.326. Condition: The Village has a written procurement policy; however, the policy has not been updated to align with the procurement standards under 2 CFR §200.317 through 2 CFR §200.326. Context: We reviewed the procurement policy and compared it to federal requirements. Questioned Costs: None Effect: The use of a noncompliant policy increases the risk that the Village may face sanctions, including, repayment of funds or termination of awards. Cause: Management did not adopt a procurement policy that conforms with the Uniform Guidance requirements. Repeat: No Auditor's Recommendation: We recommend the Village review and update its procurement policy to ensure full compliance with 2 CFR §200.317 through 2 CFR §200.32 View of Responsible Officials: Management acknowledges the finding and has prepared a corrective action plan.