Finding Text
Federal Agency: U.S. Department of Treasury
Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds
Assistance Listing Number: 21.027
Federal Award Identification Number and Year: SLFRP0135 – 2021
Pass-Through Agency: Wisconsin Department of Administration
Pass-Through Number(s): ARPA-NIF-072
Award Period: March 3, 2021 through December 31, 2024
Type of Finding:
• Significant Deficiency in Internal Control over Compliance and Other Matter
Criteria or specific requirement: 2 CFR 200.320 Methods of Procurement state that if the small purchases method is used, price or rate quotations must be obtained from an adequate number of qualified sources. The City should have internal controls designed to ensure compliance with those provisions.
Condition: The City did not follow controls related to ensuring procurement policies were followed.
Questioned Costs: None
Context: There were 55 transactions that exceeded procurement thresholds during the granting period. The sample size selected tested was 19. During our testing, it was noted on 6 of the 19 items tested that the City was not following the requirements under the adopted procurement policies.
Cause: The City did not follow the requirements under the adopted procurement policies.
Effect: The County is not in compliance with procurement requirements. Contracts for construction, non- construction related procurements, and those over the simplified acquisition threshold may not be in compliance with the Uniform Guidance.
Repeat Finding: The finding is not a repeat of a finding in the immediately prior year.
Recommendation: We recommend the City design controls to ensure an adequate review process is in place to review potential contractors to determine they are not suspended or debarred.
Views of responsible officials: There is no disagreement with the audit finding.