Finding 480307 (2023-001)

Significant Deficiency

Requirement

Questioned Costs

Year

2023

Accepted

2024-08-02

Audit: 316519

Organization: City of Valley, Nebraska (NE)

Auditor: Bland and Associates PC

AI Summary

Core Issue: The City failed to provide documentation for one contractor, violating procurement standards.
Impacted Requirements: This non-compliance with Title 2 U.S. Code of Federal Regulations Part 200 could jeopardize future funding.
Recommended Follow-Up: The City should adhere to its internal procurement policies to ensure compliance.

Finding Text

Criteria: Per the requirements of Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost of Principles, and Audit Requirements for Federal Awards, the city must implement and follow policies and procedures relating to the procurement and suspension and debarment standards. Condition: During our audit testing, the City was unable to provide supporting documentation for one of the three contractors tested to ensure the proper procurement standards were followed in accordance with Uniform Guidance. Cause: The City did not have adequate internal controls to ensure documentation was maintained relating to their procurement standards. Effect: Non-compliance could affect funding in future years. Recommendation: We recommend the City follow it’s established internal procurement policies and procedures. Organization Response: Management agrees with this finding.

Corrective Action Plan

Instance in which procurement for engineering services which exceeded the simplified acquisition threshold (SAT), or a lower threshold established by a non-Federal entity was not obtained. The Uniform Guidance for Federal Awards required competitive bids to be obtained when over the SAT threshold. Transaction testing found procurement was not obtained for engineering services. The City of Valley has communicated proper procurement guidelines to the appropriate departments and outside agencies, moving forward the City of Valley shall be placing public notice for all available service contracts that involve Federal Awards to comply with the guidelines set forth under the Uniform Guidance of Federal Funds, including but not limited to Engineering services. Reasonable completion date: August 2024 Responsible Party: City Clerk and Treasurer will work together going forward to ensure all proper paperwork is completed and public notices are placed for all available service contracts.

Other Findings in this Audit

1056749 2023-001

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
66.468	Capitalization Grants for Drinking Water State Revolving Funds	$2.03M