Finding 599281 (2022-002)

Criteria or Specific Requirement: Uniform Guidance requires non-Federal entities receiving Federal awards to establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include maintaining adequate documentation to demonstrate the execution of procurement procedures. Condition: During auditor testing over procurement, we noted the City did not follow its established procedures for one procurement sample item. This sample item was over the micro-purchase threshold and required procedures for the small purchase method. The City did not appropriately maintain documentation when entering into this procurement. Context: The City is currently reviewing its policies and procedures to ensure that it follows Uniform Guidance Procurement Standards. Questioned Costs: $26,653 Cause: The condition is due to staff turnover. Effect: Failure to appropriately complete procurement procedures can result in the use of nonqualified vendors. Recommendation: We recommend the City follows their established procurement policies. View of Responsible Officials: The City agrees with this finding.