Finding Text
Criteria: In accordance with 2 CFR 200.320, the City of Carencro is required to formally bid contracts that exceed $250,000.
Condition: The City expended $142,051 of Coronavirus State and Local Fiscal Recovery Funds on a contract that exceeded the required threshold but was not put out for bid.
Cause: The City expended federal funds on contracts that were not properly bid by federal guidelines.
Effect: As a result, the City was not in compliance with procurement requirements with questioned costs totaling $142,051.
Context: A sample of 10 disbursements were selected for audit from a population of 16 disbursements. The test found that a vendor was not properly procured. This resulted in questioned costs of $142,051.
Recommendation: The City should review their policies and procedures to ensure that all contracts that have federal expenditures are properly bid in accordance with 2 CFR 200.320.
Management’s Corrective Action Plan: This compliance finding relates to the previous administration, who did not properly have the vendor bid out in accordance with federal guidelines. The City will review their policies and procedures to ensure that all contracts that have federal expenditures are properly bid in accordance with 2 CFR 200.320.