Finding 42120 (2022-002)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-02-20
Audit: 39173
Organization: City of Wells, Nv (NV)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The City of Wells has not updated its procurement policies to meet federal standards as required by 2 CFR Part 200.
  • Impacted Requirements: Compliance with federal procurement laws and standards is necessary to ensure proper use of funds.
  • Recommended Follow-Up: Implement controls to regularly update procurement policies in line with federal requirements.

Finding Text

2022-002 U.S. Department of Treasury Passed Through State of Nevada Governor?s Finance Office COVID-19 Coronavirus State and Local Fiscal Recovery Fund CFDA 21.027 Procurement, Suspension and Debarment Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR Part 200 (Uniform Guidance) requires that a non-Federal entity must use its own documented procurement procedures which reflect applicable state and local laws and regulations, provided that the procurement procedures conform to applicable federal law and standards. Condition: We noted the City of Wells has not updated its procurement policies to conform to applicable federal laws and standards. Cause: The City of Wells did not adequate controls to ensure its procurement policies were updated to conform with the procurement requirements identified in the Uniform Guidance. Effect: Procurement may not follow federal laws and standards. Questioned Costs: None reported. Repeat Finding from Prior Year: No. Recommendation: We recommend the City of Wells implement controls to ensure its procurement policies are updated to conform with procurement requirements identified in the Uniform Guidance. Management's Response: Management agrees with the finding and procurement policies will be updated to conform with procurement requirements identified in the Uniform Guidance.

Corrective Action Plan

Finding 2022-002 Finding Summary: 2 CFR Part 200 (Uniform Guidance) requires that a non-Federal entity must use its own documented procurement procedures which reflect applicable state and local laws and regulations, provided that the procurement procedures conform to applicable federal laws and standards. Eide Bailly noted that the City of Wells has not updated its procurement procedures to conform to applicable federal laws and standards. Responsible Individuals: Samantha Nance, City Clerk Corrective Action Plan: Management will present an updated policy to the Board of Council in an upcoming council meeting to be implemented. Anticipated Completion Date: March 2023

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 618562 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $841,019
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $677,541
11.307 Economic Adjustment Assistance $77,960
20.106 Airport Improvement Program $76,824
10.569 Emergency Food Assistance Program (food Commodities) $66,093
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $60,504
10.351 Rural Business Development Grant $7,500
93.053 Nutrition Services Incentive Program $6,465