Finding 970372 (2022-005)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2024-04-22

AI Summary

  • Core Issue: The Water Works and Gas Board of the City of Red Bay lacks written standards of conduct for conflicts of interest, violating 2 CFR section 200.318(c).
  • Impacted Requirements: Non-compliance with federal procurement regulations due to absence of documented policies governing employee conduct in contract management.
  • Recommended Follow-Up: The entity should create and implement written standards of conduct to ensure compliance and proper governance in contract selection and administration.

Finding Text

2022-005 AL# 66.468 – Capitalization Grants for Drinking Water State Revolving Funds Environmental Protection Agency – Passed Through the Alabama State Department of Environmental Management I – Procurement Significant Deficiency Criteria: Per 2 CFR section 200.318(c) entities are required to have written standards of conduct that cover conflicts of interest and govern the performance of its employees engaged in the selection, award, and administration of contracts. Condition: The entity has no written standards of conduct per 2 CFR section 200.318(c). Context: The Water Works and Gas Board of the City of Red Bay does not have a written policy for standards of conduct. Effect: The entity is not in compliance with 2 CFR section 200.318(c). Cause: The entity failed to adopt a written standard of conduct. Repeat Finding: No Recommendation: The entity should adopt written standards of conduct to cover conflicts of interest and govern the performance of its employees engaged in the selection, award, and administration of contracts. Board’s Response: The Water Works and Gas Board of the City of Red Bay will maintain a written standards of conduct and comply with all State laws in relation the Board members and employees in regard to their relationship with vendors and contractors.

Categories

Procurement, Suspension & Debarment Significant Deficiency

Other Findings in this Audit

  • 393930 2022-005
    Significant Deficiency
  • 393931 2022-006
    Material Weakness
  • 970373 2022-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
66.468 Capitalization Grants for Drinking Water State Revolving Funds $1.32M