Finding 571758 (2024-001)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-07-22
Audit: 362777
Organization: City of Stillwater (MN)

AI Summary

  • Core Issue: The City lacks a formal procurement policy, which is essential for compliance with federal program requirements.
  • Impacted Requirements: This affects adherence to procurement standards outlined in UG §200.318 to §200.321.
  • Recommended Follow-Up: The City should develop and implement a formal procurement policy to ensure compliance moving forward.

Finding Text

Federal Agency: U.S. Department of the Treasury Federal Program Name: State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP2619, 2024 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: January 1, 2024, through December 31, 2024. Type of Finding: Material Weakness in Internal Control over Compliance Criteria or specific requirement: Procurement policy should be in place to ensure compliance with program requirements as stated in: UG §200.318 General procurement standards, UG §200.319 Competition, §200.320 Methods of procurement to be followed, and §200.321 Contracting with small and minority businesses, women's business enterprises, and labor surplus area firms. Condition: There is no procurement policy in place. Questioned costs: None noted. Context: The City does not have an adequate procurement policy Cause: No policy was created as the City has not had a single audit in prior years. Effect: Procurement could be out of compliance with program requirements. Repeat Finding: No. Recommendation: CLA recommends that the City implement a formal procurement policy. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

U.S. Department of the Treasury State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: 2024 Recommendation: We recommend the City implement a formal procurement policy, which should be in place to ensure compliance with program requirements and procurement standards. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The City will implement a formal procurement policy. Name of the contact person responsible for corrective action: Sharon Provos, Finance Director Planned completion date for corrective action plan: December 31, 2025

Categories

Procurement, Suspension & Debarment Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 571759 2024-002
    Material Weakness
  • 571760 2024-003
    Material Weakness
  • 1148200 2024-001
    Material Weakness
  • 1148201 2024-002
    Material Weakness
  • 1148202 2024-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.41M
16.607 Bulletproof Vest Partnership Program $3,567