Finding 46609 (2022-002)

Finding: 2022-002-Significant Deficiency Agency: U.S. Department of the Treasury Program: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number: 21.027 Criteria ? All non-federal entities, other than States, must have and use documented procurement procedures, consistent with State, local and tribal laws and regulations for the acquisition of property or services under a federal award or subaward and must follow the procurement standards in 2 CFR sections 200.318 through 200.327. CFR Section 200.318 (i) states that the non-federal entity must maintain records sufficient to detail the history of the procurement. These records will include, but are not necessarily limited to, the following: rationale for the method of procurement, selection of the contract type, contractor selection or rejection, and the basis for the contract price. The Town of Foster has written procurement procedures that include sole source procurement. The procedure requires a determination in writing that there is only one source of the required supply, service or construction item as permitted by the RIGL 45-55-8. Condition- During our test controls of the internal control over compliance with procurement requirements per the Uniform Guidance, we selected a purchase that was not competitively bid as it was determined to be a sole source purchase. The Town did not document in writing the rationale for the method of procurement in compliance with CFR Section 200.318 (i) and the Town?s written procurement procedures. Cause ? The Town did not follow established procurement procedures for purchases identified as sole source. Effect ? The Town did not adhere to established procurement procedures for sole sources purchases and had no documentation to support the procurement method as sole source. Questioned Costs ? None Recommendation ? We recommend that the Town adhere to its established procurement procedures for all sole source purchases to ensure the proper documentation is maintained to support the procurement method as sole source.