Finding Text
Assistance Listing, Federal Agency, and Program Name - 21.027, U.S. Department of Treasury, COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - SLFRP 2640 and N/A, 2024 Pass through Entity - Oakland County, Michigan Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - The Township should have a process in place to ensure all vendors that are used on projects funded with federal grant money follow the federal procurement standards. Condition - For two projects procured during the year ended December 31, 2025, the Township did not obtain competitive bids or quotes for the project, as required by 2 CFR 200.320. Questioned Costs - $83,444 If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - N/A Identification of How Questioned Costs Were Computed - Amounts paid to two vendors who were not procured through required methods Context - Of the seven procurements selected for testing, five were properly procured; however, one required competitive bids, and another required multiple quotes that were not obtained. Cause and Effect - The Township's processes and internal control structure did not ensure that proper procurement procedures were followed for all applicable vendors. The effect was that certain vendors were contracted without having been selected through the required means, either competitive bids or quotes, depending on contract amount. Recommendation - We recommend the Township implement and document processes and controls to ensure that all vendors used on projects funded with federal grant follow the procurement rules, as required by the federal government. Views of Responsible Officials and Corrective Action Plan - The Township will implement processes and procedures to ensure that vendors used on projects funded with federal grants follow the procurement rules as required by the federal standards.