Finding Text
2022-006 Federal Agency: U.S. Department of Agriculture Federal Program Title: Water and Waste Disposal Systems for Rural Communities Assistance Listing Number: 10.760 Award Period: January 1, 2022 to December 31, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Other Matters Procurement Policy Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations ? 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. In addition, Title 2 U.S. Code of Federal Regulations ? 200.318 states that the nonfederal entity must use its own documented procurement procedures which reflect applicable state, local and tribal laws and regulations, provided that the procurements conform with applicable federal law and the standards identified in this regulation. Condition: The City does not have a written procurement policy that includes components required by Title 2 U.S. Code of Federal Regulations ? 200.318. Questioned Costs: None. Context: The City does not have a federal procurement policy on file. Cause: The City has not approved a procurement policy that meets the requirements of the Uniform Guidance. Effect: Noncompliance with uniform grant guidance. Repeat Finding: Yes, 2021-006. Recommendation: We recommend the City adopt a procurement policy that meets the requirements of the Uniform Guidance and implement controls to ensure it is being followed. View of Responsible Official: There is no disagreement with the finding.