Finding 588048 (2022-009)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2024-02-05
Audit: 15456
Organization: City of Pitts, Georgia (GA)
Auditor: Eckler CPA LLC

AI Summary

  • Core Issue: The City has a material weakness in internal controls over procurement, leading to potential non-compliance with federal regulations.
  • Impacted Requirements: Internal controls must ensure that all procurement activities comply with federal regulations and other applicable requirements.
  • Recommended Follow-Up: Develop a formal procurement policy and ensure knowledgeable personnel review procurement decisions for compliance.

Finding Text

Information on the Federal Program: Assistance Listing Number 10.763—Emergency Community Water Assistance Grants, United States Department of Agriculture. Compliance Requirements: Procurement. Type of Finding: Material Weakness in Internal Control Over Compliance. Criteria: Internal controls should be in place to provide reasonable assurance that procurement of goods and services are made in compliance with federal regulations and other procurement requirements, as applicable. Condition: The City lacks sufficient controls over procurement to ensure compliance with federal regulations and other procurement requirements, as applicable. Cause: The City did not design and implement controls over compliance with procurement. Effect or Potential Effect: Failure to have adequate internal controls over compliance with procurement could result in the acquisition of goods or services in violation with administrative requirements, federal regulations, and other procurement requirements. Questioned Costs: There are no questioned costs. Recommendation: We recommend that the City create and adopt an official written policy for procurement and contracts establishing contract files that document significant procurement history; methods of procurement authorized including selection of contract type, contractor selection or rejection, and the basis of contract price; verification that procurements provide full and open competition; requirements for cost or price analysis, including for contract modifications; obtaining and reacting to suspension and debarment certifications; and other applicable requirements for procurements under federal awards are followed. We also recommend that personnel with adequate knowledge and experience of responsibilities for procurements for federal awards review procurement and contracting decisions for compliance with federal procurement policies.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.763 Emergency Community Water Assistance Grants $345,602
21.027 Coronavirus State and Local Fiscal Recovery Funds $61,350