Finding 1240607 (2024-004)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2026-10-16
Audit: 415008
Organization: City of Dickinson (ND)
Auditor: BRADY MARTZ PLLC

AI Summary

  • Core Issue: The City failed to comply with federal procurement standards and did not verify vendor eligibility regarding suspension and debarment.
  • Impacted Requirements: Non-compliance with 2 CFR 200.318 through 200.327 regarding procurement and vendor checks.
  • Recommended Follow-Up: Ensure adherence to procurement policies and document vendor checks for federal projects to prevent future issues.

Finding Text

AL 66.458 Clean Water State Revolving Funds – Procurement, Suspension and Debarment – Significant Deficiency 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 We recommend that the City follow their procurement policy and the requirements of 2 CFR 200.318 and document the fulfillment of this requirement. Views of Responsible Officials and Planned Corrective Actions Project management staff has been made aware of this requirement and will document vendor checks for federal projects going forward. Repeat Finding: This is a repeat finding of prior year finding 2023-004.

Corrective Action Plan

Contact Person – Katie Greenwood, Deputy Finance Director Corrective Action Plan – Project management staff has been made aware of this requirement and will document vendor checks for federal projects going forward. Completion Date – December 31, 2025

Categories

Procurement, Suspension & Debarment Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1240608 2024-005
    Material Weakness Repeat
  • 1240609 2024-005
    Material Weakness Repeat
  • 1240610 2024-005
    Material Weakness Repeat
  • 1240611 2024-005
    Material Weakness Repeat
  • 1240612 2024-005
    Material Weakness Repeat
  • 1240613 2024-005
    Material Weakness Repeat
  • 1240614 2024-005
    Material Weakness Repeat
  • 1240615 2024-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
66.468 DRINKING WATER STATE REVOLVING FUND $1.26M
66.458 CLEAN WATER STATE REVOLVING FUND $1.04M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $302,102
97.004 STATE DOMESTIC PREPAREDNESS EQUIPMENT SUPPORT PROGRAM $147,619
97.067 HOMELAND SECURITY GRANT PROGRAM $69,934
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $6,736
16.543 MISSING CHILDREN'S ASSISTANCE $1,738
20.608 MINIMUM PENALTIES FOR REPEAT OFFENDERS FOR DRIVING WHILE INTOXICATED $1,147