Finding Text
2022-001 - Deficient Federal Procurement Policies and Procedures Finding Type: Material Weakness and Noncompliance over Federal Awards Programs: Capitalization Grants for Clean Water Revolving Funds (Assistance Listing Number 66.458) Criteria: Per 2 CFR Part 200.318 and 319 General Procurement Standards and Competition, the City must: ? Maintain written standards of conduct covering conflicts of interest ? Avoid acquisition of unnecessary or duplicative items ? Promote cost-effective use of share services ? Use value engineering clauses in contracts for construction projects to offer reasonable opportunities for cost reductions ? Award contracts only to responsible contractors ? Maintain records sufficient to detail the history of procurement, including (but not limited to) rationale for the method of procurement, selection of the contract type, selection of the contractor, and basis for the contract price ? Procurements provide for full and open competition Condition/Finding: The City was found to have inadequate controls over procurement during our testing. The lack of controls led to noncompliance over federal procurement standards because the City was unable to provide documentation demonstrating their rationale for contractor selection, selection of the contract type, basis for the contract price, or how full and open competition was achieved. Cause: The City did not have policies and procedures over procurement as required by the Uniform Guidance. Effect: The City has increased risk of entering into unfavorable contracts and/or participating inadvertently in ineligible related party transactions without following effective policies. Questioned Costs: No questioned costs were identified as a result of this finding. Repeat Finding: No Recommendation: We recommend that the City Commission and management adopt, and follow, written policies and procedures (that conform with requirements of the Uniform Guidance) to ensure that future contracts are properly documented and awarded in a manner that demonstrates the rationale applied in awarding a contract to the most economical bidder within an appropriately competitive environment. View of Responsible Officials (Corrective Action): See corrective action plan.