Finding 1229076 (2025-004)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-09-08
Audit: 410531
Organization: CITY OF STEWART (MN)

AI Summary

  • Core Issue: The City's procurement procedures do not meet federal requirements set by the OMB Uniform Guidance.
  • Impacted Requirements: Non-compliance risks with federal awards due to outdated procurement practices.
  • Recommended Follow-Up: Revise procurement procedures to align with Minnesota statutes and Uniform Guidance.

Finding Text

Program: ALN 66.458 Clean Water State Revolving Fund ALN 66.468 Drinking Water State Revolving Fund Criteria: As required by the OMB Uniform Guidance (2 CFR 200.318(a)), a non-federal entity must use its own documented procurement procedures, provided that they conform to Federal law and the standards outlined in the Uniform Guidance. Condition: The City's procurment procedures do not conform to Uniform Guidance requirements. Effect: There is an increased risk of noncompliance with federal awards. Questioned Costs: N/A Cause: The City has not revised procurement procedures for many years. Recommendation: We recommend that the City revise their procurement procedures to conform with Minnesota statutes and Uniform Guidance.

Corrective Action Plan

Programs: ALN 66.458 Clean Water State Revolving Fund and ALN 66.468 Drinking Water State Revolving Fund Condition: The City's procurement procedures do not conform to Uniform Guidance requirements. Actions Planned in Response to Finding: The City will update procurement procedures to conform with Minnesota statutes and Uniform Guidance. Officer Responsible for Ensuring CAP: Kimberly Block, Clerk/Treasurer Planned Completion Date: 12/31/2026

Categories

Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1229061 2025-001
    Material Weakness Repeat
  • 1229062 2025-002
    Material Weakness Repeat
  • 1229063 2025-003
    Material Weakness Repeat
  • 1229064 2025-004
    Material Weakness Repeat
  • 1229065 2025-001
    Material Weakness Repeat
  • 1229066 2025-002
    Material Weakness Repeat
  • 1229067 2025-003
    Material Weakness Repeat
  • 1229068 2025-004
    Material Weakness Repeat
  • 1229069 2025-001
    Material Weakness Repeat
  • 1229070 2025-002
    Material Weakness Repeat
  • 1229071 2025-003
    Material Weakness Repeat
  • 1229072 2025-004
    Material Weakness Repeat
  • 1229073 2025-001
    Material Weakness Repeat
  • 1229074 2025-002
    Material Weakness Repeat
  • 1229075 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
66.468 DRINKING WATER STATE REVOLVING FUND $1.15M
66.458 CLEAN WATER STATE REVOLVING FUND $675,067
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $3,665