Finding Text
Finding 2022-010 Lack of Internal Control over Procurement Federal Agency: U.S. Department of the Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Number: None Award Years: 2021 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Uniform Guidance requires that entities receiving federal funding must have written policies and procedures related to procurement that meet the criteria listed in 2 CFR 200.318 and 200.320. Condition and Context: During our compliance testing of the program, management was unable to provide adequate supporting documentation to demonstrate that proper procurement procedures were followed in the purchase of an ambulance, a vehicle, and contract services. Cause: Lack of internal controls over procurement requirements. Effect: Failure to follow compliance requirements could result in loss of federal funding. Questioned Costs: None noted. Costs incurred under the program appeared reasonable based on our review. However, we were unable to determine procurement method or how the vendor was selected in the transaction. Repeat Finding: This is a repeat of Finding 2021-007 and since it is a repeat finding, we believe this to be a systemic issue. Recommendation: We recommend that all necessary purchases go through a formal procurement process to comply with grant requirements and that documentation of procurement is stored in an organized manner so that documentation can be provided to the auditors timely. Management?s Response: Management agrees with this finding. See Corrective Action Plan.