Finding Text
Finding: 2022-005 Procurement Policy Federal Agency: U.S. Department of Agriculture Federal Program Title: Water and Wastewater Disposal Systems for Rural Communities Assistance Listing Number: 10.760 Pass-Through Agency: Not Applicable Pass-Through Number: Not Applicable Award Period: June 23, 2021 through August 1, 2024 Type of Finding: Material Weakness in Internal Control over Compliance with Other Matter Criteria: The City is responsible for establishing a procurement policy that follows related requirements outlined in Uniform Guidance. Condition: The Uniform Guidance requires governmental entities to have procurement policies that address specific elements, including: the five procurement methods, open competition, conflicts of interest, avoidance of unnecessary or duplicative items, contracting with small and minority businesses, women?s business enterprises, and labor surplus area firms. The City?s procurement policy, although approved by the award oversight agency, did not contain all the required elements as set forth by CFR 2, Part 200, Subpart D. Context: The City did not adopt a procurement policy that met the requirements outlined by the award oversight agency of their sole active federal aid program and was not aware that it needed to establish a procurement policy that follows the requirements outlined in Uniform Guidance. Cause: The City relied on guidance provided by the award oversight agency during the procurement process. Effect: The potential exists that compliance requirements are not being met if the City is not familiar with Uniform Guidance compliance requirements. Repeat Finding: No Recommendation: The City should be familiar with compliance requirements outlined by Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding. The City approved a procurement policy in 2023 that follows the related requirements outlined in Uniform Guidance.