Finding 964167 (2023-003)

Criteria: Internal controls over compliance should be properly designed, implemented and monitored to ensure compliance with the requirements of federal award programs. Effect: Cases were identified wherein the City elected to waive the competitive bidding process based on a sole source vendor without retaining documentation of factors qualifying the purchase as sole source and efforts to obtain competition prior to approval of the purchase. Context: Sole source awards lacking documentation were noted in 2 of 25 disbursements selected for testing, as part of a non-statistical sample. Recommendation: The City should implement and use a standard process to document the justification of sole source acquisitions when full and open competition is not practical. This documentation should be included as part of the approval process when waiving the competitive bidding process.