Finding 571760 (2024-003)

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 failed to keep necessary procurement documentation, which is a requirement for compliance.
  • Impacted Requirements: The City must maintain detailed records of procurement history, including rationale, contract type, and contractor decisions.
  • Recommended Follow-Up: Implement a formal procurement policy to ensure compliance and retain all required documentation.

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: The City should retain all procurement documentation. Condition: The non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Questioned costs: None noted. Context: The City did not retain procurement documentation as an outside consultant handled the procurement process. Cause: The City did not retain documentation. 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. SECTION IV – MINNESOTA LEGAL COMPLIANCE Our audit did not disclose any matters required to be reported in accordance with Minnesota Legal Compliance Audit Guide for Counties, promulgated by the State Auditor.

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 internal controls to ensure that all procurement documentation is retained. 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 and internal controls to ensure compliance with procurement standards. Name of the contact person responsible for corrective action: Sharon Provos, Finance Director Planned completion date for corrective action plan: December 31, 2025 FINDINGS— MINNESOTA LEGAL COMPLIANCE Our audit did not disclose any matters required to be reported in accordance with the Minnesota Legal Compliance Audit Guide for Counties.

Categories

Procurement, Suspension & Debarment Material Weakness Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 571758 2024-001
    Material Weakness
  • 571759 2024-002
    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