Finding Text
Federal Program - Water and Waste Disposal Systems for Rural Communities (10.760); Procurement, Suspension, and Debarment; Criteria - Uniform Guidance requires entities that have federal expenditures to have a procurement policy in place that follows all federal requirements. Also, an entity should have controls in place to ensure vendors are not suspended or disbarred from receiving federal dollars.; Condition - During testing we noted that the city does not have a procurement policy that meets Uniform Guidance requirements. We also noted that the city doesn't have controls in place to ensure vendors are not suspended or disbarred from receiving federal funds.; Questioned Costs - None; Context - The City does not have a procurement policy in place that follows Uniform Guidance. The City also does not have procedures in place to ensure they do not enter into a contract with a vendor who is not suspended or disbared from federal dollars.; Cause - Oversight by staff.; Effect - There is an increased risk that the City could enter into a contract with a vendor that has an active exclusion from federal dollars.; Repeat finding - Yes. Prior audit finding 2021-005.; Recommendation - The City should update their procurement policy to include all federal requirements and implement procedures to ensure vendors are not suspended or disbarred from receiving federal dollars.; Views of Responsible Officials - The City agrees with the recommendation and will review its procurement policy.