Finding Text
Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Compliance Requirement: Procurement Federal Award Identification Number and Year: MD0044 and 2021 Award Period: March 11, 2021 through December 31, 2024, liquidated by December 31, 2026 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Per 2CFR ? 200.318(a), non-Federal entities must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in ?? 200.317 through 200.327. Questioned Costs: None Condition/Context: The Town?s procurement policy for federal expenditures is not in accordance with ?? 200.317 through 200.327. Therefore, for one of three vendors tested, proper procurement processes of obtaining price or rate quotations from an adequate number of qualified sources was not followed. Cause: The Town?s policies and procedures did not require proper federal procurement requirements to be followed prior to paying a vendor with Federal grant funds. Effect: Funds were disbursed to vendors without following proper federal procurement requirements. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Town establish and document procurement policies and procedures in conformity with the Federal requirements ?? 200.317 through 200.327. Views of responsible officials: Management agrees with the finding.