Finding 619142 (2022-003)

Material Weakness
Requirement
I
Questioned Costs
$1
Year
2022
Accepted
2023-07-09

AI Summary

  • Core Issue: The City failed to seek competition for two professional services contracts totaling $426,333, violating federal procurement standards.
  • Impacted Requirements: Noncompliance with Uniform Guidance (2 CFR 200.319(a)) which mandates full and open competition for federal awards.
  • Recommended Follow-Up: The City should establish clear policies and procedures to ensure compliance with federal procurement requirements moving forward.

Finding Text

PROCUREMENT OF PROFESSIONAL SERVICES United States Department of the Treasury COVID-19 ? Coronavirus State and Local Fiscal Recovery Funds (Federal Assistance Listing No. 21.027) Criteria: The Uniform Guidance administrative requirements and cost principles apply to federal funding awarded on or after December 26, 2014. 2 CFR 200, Subpart D ? Post Federal Award Requirements Section 200.319(a) requires that all procurement transactions for the acquisition of property or services acquired under a federal award must be conducted in a manner providing full and open competition consistent with the standards of this section. Condition: Two professional services contracts selected for testing. The population consisted of these two professional services contracts totaling $426,333. The City did not seek competition when procuring these contracts. Additionally, it was noted through discussions with the Council Administrator that competition is not sought to procure professional services. Cause: The City does not have policies and procedures in place to ensure open competition was sough when procuring professional services with federal awards. Questioned Costs: $146,326 Effect: The City is noncompliant with Uniform Guidance procurement standards and may not be receiving the most advantageous rates for these services. Recommendation: The City should implement policies and procedures that ensure the proper procedures are followed to ensure compliance with federal procurement requirements. Identification of a repeat finding: This is a new finding in the current year. View of Responsible Official: Management concurs with the finding.

Categories

Questioned Costs Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Other Findings in this Audit

  • 42699 2022-002
    Material Weakness
  • 42700 2022-003
    Material Weakness
  • 42701 2022-004
    Significant Deficiency
  • 42702 2022-003
    Material Weakness
  • 42703 2022-004
    Significant Deficiency
  • 619141 2022-002
    Material Weakness
  • 619143 2022-004
    Significant Deficiency
  • 619144 2022-003
    Material Weakness
  • 619145 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $4.03M
21.027 Coronavirus State and Local Fiscal Recovery Funds $850,810
11.300 Investments for Public Works and Economic Development Facilities $656,735
20.205 Highway Planning and Construction $249,674
97.039 Hazard Mitigation Grant $181,830
14.218 Community Development Block Grants/entitlement Grants $66,482
14.871 Section 8 Housing Choice Vouchers $31,522
20.601 Alcohol Impaired Driving Countermeasures Incentive Grants I $15,840
20.106 Airport Improvement Program $9,850
16.607 Bulletproof Vest Partnership Program $4,693
20.600 State and Community Highway Safety $3,083