Finding 479512 (2023-001)

Federal agency: Department of Transportation Federal program name: Highway Planning and Construction Assistance Listing Number: 20.205 Federal Award Identification Number and Year: 202-101-014, 2023 Pass-Through Agency: Minnesota Department of Transportation Pass-Through Agency Number: SP 202-101-014 Award Period: 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: The Uniform Guidance requires the City to have a procurement policy per §200.319. The Uniform Guidance also requires the City procedures for suspension and debarment per §200.214. Condition: The City does not have a procurement policy which includes all required aspects under the Uniform Guidance including suspension and debarment. Questioned Costs: None Context: The City does not have a procurement policy which includes all required aspects under the Uniform Guidance including suspension and debarment. Cause: The City was unaware of the requirement. Effect: The City is not in compliance with the Uniform Guidance procurement policy requirement. This may lead to the payment of contracts that do not comply with federal regulations and guidelines, which could result in the inappropriate use of federal funds or expending funds to suspended or debarred entities. Recommendation: We recommend the City implement a procurement, suspension, and debarment policy that complies with the Uniform Guidance. Views of responsible officials: There is no disagreement with the audit finding.