Finding 1228638 (2022-005)

U.S. Department of Homeland Security Pass-through Entity: North Carolina Department of Public Safety, Division of Emergency Management Program Name: Disaster Grants – Public Assistance Federal Assistance Listing Number 97.036 Material Weakness, Material Noncompliance – Procurement Finding 2022-005 Criteria: Per Section 200.318 of the Uniform Grant Guidance, a non-federal entity must use documented procurement procedures for the acquisition of services required under a federal or State award. Condition: The Town did not retain documentation of the bid process for contracted services tested as required by Uniform Grant Guidance procurement standards. Questioned Costs: None. Effect: By not having the required documentation and rationalization in the files, the Town could have improperly contracted with a vendor that was not considered eligible to be paid with grant proceeds. Cause: The Town did not ensure documentation was maintained for the bidding process for the grant to evidence that contracts were procurement procedures were in accordance with the Uniform Grant Guidance procurement standards. Recommendation: The Town should maintain records sufficient to detail the history of every procurement. These records must include, but are not necessarily limited to, the rationale for the method of procurement, selection or rejection of contractors, and the basis for the contract price. Management Response: Management agrees with the findings and is implementing corrective procedures, which are further discussed in the corrective action plan.