Finding 554297 (2024-003)

2024-003 Significant Deficiency over Procurement Information on the Federal Program: Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing Number 21.027, U.S. Department of the Treasury. Criteria: All entities under the program, must follow the procurement standards in 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. Condition: We noted the County did not originally follow the procurement standards for their procurement of radio read water meters and installations. The County solicited price quotes for this contract. However, based on the amount of the contract, the County should have solicited a formal bid. Context/Cause: The County did not properly solicit for a formal bid for the radio read water meters and installation contract. The County was notified that the price quotes obtained would not be in compliance with the procurement standards and therefore solicited for a formal bid the contract. Effects: The County was not in compliance with the Federal and State procurement requirements. Recommendation: We recommend that the County implement a process to formally document all procurement actions and ensure the properly procurement based on the monetary amount of the contract. Auditee’s Response: We concur with the finding.