Finding Text
Finding 2022-005 ? Assistance #21.027 ? Coronavirus State and Local Fiscal Recovery Funds ? Procurement (Significant Deficiency): Condition: The contracts used by the city did not include required language related to procurement. Criteria: If a contract was entered into, the provisions of Appendix II of 2 CFR 200 were included as applicable provisions with the contract. Questioned Costs: N/A Context: For 2 contracts tested, the City used a cooperative procurement contract but there was no evidence the City included the required language related to procurement requirements. The sample size was determined based upon guidelines provided by the AICPA which is not a statistically valid sample. Cause: The City believed this step had already been completed by the government entity that was a party to the cooperative procurement contract. Effect: Vendors may not receive adequate communication of requirements for receiving federal funds. Recommendations: Revise policies to ensure the City includes the required procurement language in the contract for each vendor receiving federal funds. Views of Responsible Officials (Unaudited): Management acknowledges that there was a lapse in procurement internal controls and duties that resulted in contracts that received Coronavirus State and Local Fiscal Recovery Funds not including the provisions of Appendix II of 2 CFR 200. Management is in the process of updating its internal controls, processes, and procedures related to procurement and will update contract policies to include the provisions of Appendix II of 2 CFR 200 in all future contracts for vendors receiving federal funds.