Finding 1223950 (2025-004)

Criteria Recipients and subrecipients other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR 200.318 through 200.327. Condition During internal control inquire, we noted the City did not follow federal procurement requirements. The City also entered into a covered transaction without checking the vendor to ensure they did not have an active suspended or debarred exclusion from receiving federal funds. Cause Management oversight Effect The City is not in compliance with federal procurement, suspension, and debarment requirements. Questioned Costs None Recommendation The City should follow their procurement policy. Views of Responsible Officials and Planned Corrective Actions City officials have already implemented internal controls to ensure the proper oversight of federal programs according to the Uniform Grant Guidance Policy for Federal Revenue Sources. Current Status This is a new finding in the current year.