Finding 52071 (2022-002)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2022-12-01
Audit: 52978
Organization: Town of Middlebury, Connecticut (CT)

AI Summary

  • Core Issue: The Town lacks a compliant procurement policy, leading to purchases that violate federal standards.
  • Impacted Requirements: Noncompliance with procurement standards outlined in 2 CFR sections 200.318 through 200.326.
  • Recommended Follow-Up: Update procurement policies to align with federal guidelines and ensure proper procedures are followed.

Finding Text

Finding No. 2022-002 Procurement Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID-19 American Rescue Plan Act Local Fiscal Recovery Assistance Listing Number: 21.027 Pass-Through Agency: State of Connecticut Office of Policy and Management Pass-Through Number(s): 12060-OPM20600-29669 Award Period: June 7, 2021 through December 31, 2026 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria The Town must comply with procurement standards set out at 2 CFR sections 200.318 through 200.326 within Uniform Guidance. Condition The Town?s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326 and purchases were made that did not follow these requirements. Questioned Costs None noted. Context The Town did not have a policy in place in conformity with the federal Uniform Guidance criteria and purchases were made that did not follow these requirements. Effect With the absence of a compliant policy, the Town made purchases that did not follow federal Uniform Guidance procurement standards. Cause The Town was not aware of the details surrounding the Uniform Guidance procurement standards and its policy was not updated. Recommendation We recommend that the Town review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of Responsible Officials and Planned Corrective Actions Management agrees with the auditors? recommendations. Corrective action will be taken to ensure the policy is updated and the correct procurement procedures are followed.

Corrective Action Plan

Finding 2022-002 Procurement Description of Finding The Town?s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326 and purchases were made that did not follow these requirements. Statement of Concurrence or Nonconcurrence Management agrees with this finding. Corrective Action: Corrective action will be taken to ensure the policy is updated and the correct procurement procedures are followed. Name of Contact Person: Edward B. St. John (475) 473-3352 Projected Completion Date: June 30, 2023

Categories

Procurement, Suspension & Debarment Material Weakness

Other Findings in this Audit

  • 52072 2022-003
    Significant Deficiency
  • 628513 2022-002
    Material Weakness
  • 628514 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.66M
21.019 Coronavirus Relief Fund $24,555
97.042 Emergency Management Performance Grants $17,441
20.205 Highway Planning and Construction $7,395
16.738 Edward Byrne Memorial Justice Assistance Grant Program $4,608
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $4,297
45.310 Grants to States $960