Finding 615793 (2022-003)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-02-27
Audit: 37848
Organization: City of Spartanburg (SC)

AI Summary

  • Core Issue: The City is not consistently following its own procurement regulations for federal grant expenditures.
  • Impacted Requirements: Purchase orders were created after invoices, approvals were not properly documented, and some recurring purchases were incorrectly deemed exempt.
  • Recommended Follow-Up: The City should either comply with existing regulations or update them to reflect current practices.

Finding Text

2022-003: PROCUREMENT CONDITION: During our testing of non-payroll expenditures, we noted that the City was not always complying with its Regulations. CRITERIA: All expenditures for the City's federal grant programs should be processed in accordance with the City's Regulations. CONTEXT, CAUSE AND EFFECT: There were several instances where the City created purchase orders after invoices were received from vendors. There were expenditures where the appropriate City personnel did not properly document their review and approval. There were recurring purchases that the City treated as exempt from its Regulations; however, the category of these purchases were not specifically listed as an approved exemption in the City?s most recent Procurement Code. Contract documentation required by the City's Guidelines was not always available. RECOMMENDATION: We recommend that the City either operate according to its current Regulations or amend these Regulations to better address current practices. RESPONSE: The City agrees with this finding and will adhere to the corrective action plan on page 186 in this audit report.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 39349 2022-003
    Material Weakness
  • 39350 2022-003
    Material Weakness
  • 39351 2022-003
    Material Weakness
  • 39352 2022-003
    Material Weakness
  • 615791 2022-003
    Material Weakness
  • 615792 2022-003
    Material Weakness
  • 615794 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $1.55M
14.218 Community Development Block Grants/entitlement Grants $337,371
14.900 Lead-Based Paint Hazard Control in Privately-Owned Housing $276,033
14.218 Covid-19 - Community Development Block Grants/entitlement Grants $178,645
20.507 Federal Transit_formula Grants $97,005
93.297 Teenage Pregnancy Prevention Program $90,310
20.106 Airport Improvement Program $59,000
16.817 Byrne Criminal Justice Innovation Program $57,244
20.600 State and Community Highway Safety $52,081
16.575 Crime Victim Assistance $48,660
16.738 Edward Byrne Memorial Justice Assistance Grant Program $31,428
16.034 Covid-19 - Coronavirus Emergency Supplemental Funding Program $28,777
14.239 Home Investment Partnerships Program $21,000
20.507 Covid-19 - Federal Transit_formula Grants $15,350
97.067 Homeland Security Grant Program $8,793