FAC Explorer

Finding 390370 (2023-009)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-03-29
Audit: 301192
Organization: City of Amsterdam, New York (NY)
Auditor: Rbt CPAS LLP

AI Summary

  • Core Issue: The City failed to obtain bids and document quotes for purchases, violating federal procurement requirements.
  • Impacted Requirements: This affects compliance with procurement, suspension, and debarment regulations for federal funds.
  • Recommended Follow-up: Ensure adherence to procurement processes for federal expenditures to prevent potential overspending.

Finding Text

Finding 2023-009 Quotes and Bids 21.027 - Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Procurement, Suspension, and Debarment Type of Finding: Internal Control Deficiency and Compliance Finding Condition: The City did not go out to bid for a purchase and did not document quotes for another purchase. Criteria: Federal expenditure procurement requirements provide for internal controls to ensure federal funds are not misused. Cause: The City did not go out to bid. Quotes may have been obtained, but documenation could not be located. Effect: The City may have paid more than necessary. Perspective: RBT noted that out of 2 transactions tested, the City did not maintain documentation of quotes or bids for either. Repeat Finding: Not a repeat finding. Recommendation: RBT recommends that the City follow the procurement process when spending federal funds. Auditee's Response: See corrective action plan.

Corrective Action Plan

The City goes out to bid for all general purchases over $20,000 and all public works projects over $35,000. Exceptions have been made in the past when an emergency situation presented itself. In those instances, formal quotes were obtained. Unfortunately, staffing changes occurred in the past year and quotes could not be located. As a change in practice, all bid documents and quotes will be uploaded into our accounting system and saved as an attachment to purchase orders. This finding has been resolved.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 390368 2023-007
    Material Weakness
  • 390369 2023-008
    Significant Deficiency Repeat
  • 390371 2023-010
    Significant Deficiency
  • 966810 2023-007
    Material Weakness
  • 966811 2023-008
    Significant Deficiency Repeat
  • 966812 2023-009
    Significant Deficiency
  • 966813 2023-010
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $843,349
21.027 Coronavirus State and Local Fiscal Recovery Funds $433,587
20.205 Highway Planning and Construction $269,603
97.039 Hazard Mitigation Grant $91,765
16.607 Bulletproof Vest Partnership Program $990