Finding 12502 (2022-004)

- Repeat Finding
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-02-14
Audit: 17032
Organization: Village of Elmwood Park (IL)
Auditor: Gw & Associates

AI Summary

  • Core Issue: The Village's procurement policy allows waiving bidding requirements, which does not align with federal guidelines.
  • Impacted Requirements: Noncompliance with Uniform Guidance procurement standards could lead to issues with federal funding.
  • Recommended Follow-Up: Update the procurement policy to eliminate the bidding waiver for federal procurements, as agreed by management.

Finding Text

Assistance Listing #: 20.205 Program: Highway Planning and Construction Cluster Federal Agency: Department of Transportation Repeat Finding: Yes (2021-006) 2022-004 Procurement Policy In Need of Updating for Federal Requirements Criteria Uniform Guidance procurement requirements (2 CFR 200.320(c)) provides specific circumstances in which noncompetitive procurement can be used. Condition The Village?s procurement policy allows for waiver of bidding requirements by a 2/3 vote of all Village Trustees. This is not one of the specific circumstances provided in Uniform Guidance for noncompetitive procurement. Context We have not identified any instances in which bidding requirements have been waived for procurements under federal programs at this time. Cause The cause appears to be a lack of familiarity with the particular provision of the Uniform Guidance. Effect A procurement policy not in accordance with federal requirements could result in noncompliance with federal procurement requirements. Recommendation We recommend that the Village update its procurement policy to remove the bidding waiver provision in the case of federal procurements. Management Response Management agrees with the finding and recommendation. See corrective action plan.

Corrective Action Plan

Village of Elmwood Park Corrective Action Plan for the findings identified in connection with the Single Audit for the Fiscal Year eEnding April 30, 2022 is identified below. The finding is titled and numbered consistently with the title and number assigned in the schedule of findings and questioned costs. Finding 2021-001 ? Controls over Financial Reporting Corrective Action Plan: Management agrees with the finding and recommendation and will work with GWA to correct prior year adjustments and balances. A review process for journal entries is in place and will be reevaluated. Interfunds are being tracked with monthly bank recs Anticipated completion date: May 1, 2023. Contact person: Finance Director Finding 2021-002 ? Controls over Schedule of Expenditures of Federal Awards Corrective Action Plan: Management agrees with the finding and recommendation and will improve the tracking of the Revenues and Expenses of Federal Awards management. Will request missing information from GW and make sure to update and track. Anticipated completion date: May 1, 2023. Contact person: Finance Director Finding 2022-003 ? Inaccurate Bank Reconciliations Corrective Action Plan: Management agrees with the finding and recommendation and have updated the bank reconciliation process including completion of the reconciliation in the following month and tracking interfund activity with the bank reconciliation. Management will continue to evaluate the bank reconciliation process to ensure accuracy. Anticipated completion date: May 1, 2023. Contact person: Finance Director Finding 2022-004 ? Procurement Policy In Need of Updating for Federal Requirements Corrective Action Plan: Management agrees with the finding and recommendation and will discuss with the GWA and Village Attorney with the intention of making the recommended changes. Anticipated completion date: May 1, 2022. Contact person: Finance Director

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
20.205 Highway Planning and Construction $591,564
12.U01 Environmental Infrastructure Program Section 219 $364,535
21.027 Coronavirus State and Local Fiscal Recovery Funds $1,051