Finding Text
Criteria
The Uniform Guidance requires a grant recipient to establish and maintain effective controls in order to ensure compliance with the federal award regulations, statutes, and terms and conditions of the grant.
Condition
The City did not obtain bids for the purchase of equipment totaling $268,640 as required.
Cause
The City did not have proper controls in place to ensure that expenditures were properly procured.
Effect
The City did not comply with procurement requirements for the federal program.
Context
A sample of 18 disbursements were selected for audit from a population of 48 disbursements. The test found that one disbursement was not properly procured. This resulted in questioned costs of $268,640.
Recommendation
The City should implement policies and procedures to ensure compliance with procurement.
Views of Responsible Officials and Planned Corrective Action
The City agrees with the finding and has established policies and procedures to ensure compliance.