Finding 615369 (2022-003)

-
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-09-27
Audit: 46542
Organization: Town of Alexander (NY)

AI Summary

  • Core Issue: Engineering services for water district #6 were not procured as required by CFR §1780.39.
  • Impacted Requirements: Failure to evaluate competitor qualifications and publicly announce service requirements may lead to unfair pricing and selection.
  • Recommended Follow-Up: Ensure future procurement aligns with regulations; implementation planned for December 31, 2023, by the Town Board and Supervisor.

Finding Text

Criteria - Management is responsible for procuring engineering services. CFR ?1780.39 (b) states applicants should negotiate for procurement of professional services, whereby competitor?s qualifications are evaluated and the most qualified competitor is selected, subject to negotiations of fair and reasonable compensation. CFR ?1780.39(b)(l)(i) states applicants shall publicly announce all requirements for engineering and architectural services. Condition - The engineering services for the construction of water district #6 was not procured in accordance with CFR ?1780.39. Effect of Condition - The Town may not have received the fairest and most reasonable pricing for engineering services or selected the most qualified firm. Recommendation - We recommend that the Town procure these services in the future. Management?s Response - (3) Audit Finding 2022-003 - The engineering services for the construction of water district #6 was not procured. (a) Implementation Plan of Actions - The Town will procure engineering services in the future. (b) Implementation Date - This will be implemented for the year ended December 31, 2023. (c) Persons Responsible for Implementation - The Town Board and Supervisor of the Town of Alexander.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 38926 2022-002
    Material Weakness
  • 38927 2022-003
    -
  • 615368 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.760 Water and Waste Disposal Systems for Rural Communities $2.84M
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $1.70M