Finding 400686 (2023-002)

2023-002- Procurement Policy Federal Agency: U.S. Department of the Treasury Award Name: Coronavirus State and Local Fiscal Recovery Funds Program Year: 2023 Assistance Listing Number: 21.027 Compliance: Procurement and Suspension and Debarment Finding Type: Material weakness in internal controls over compliance. Criteria: Management is responsible for maintaining a policy when using award funds to enter into contracts to procure goods and services necessary. Condition: During compliance testing, it was noted that a procurement policy was not maintained during the entire grant period. Context: It was noted that a formal policy was not in place during the entire grant period. Cause of Condition: Award funds were used to enter into contracts to procure goods and services without a formal policy in place. Effect of Condition: As a result of this condition, the District did not have or follow a policy. Recommendation: It is recommended that the District establish and maintain a formal procurement policy. View of Responsible Officials and Planned Corrective Action: Beginning in October 2023, the District established a procurement policy which formalized the procurement process codified by long standing practices of the District’s operator. Planned Implementation Date of Corrective Action: Implemented Person Responsible for Corrective Action: Not applicable – already in place.