City of Willmar

SECTION II. FINDINGS RELATED TO FINANCIAL STATEMENTS AUDITED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS None SECTION III. FINDINGS ? FEDERAL AWARDS PROGRAM Finding 2020-001 Uniform Guidance Written Procurement Policies and Procedures Program: CFDA 20.106 U.S. Department of Transportation Airport Improvement Program Criteria: As stated in Title 2 U.S. Code of Federal Regulations ? 200.318, non-federal entities are required to use documented procurement procedures that are consistent with state, local, and tribal laws and regulations, provided the procedures conform with applicable federal laws and the standards identified in this regulation. Condition: City of Willmar has documented procurement procedures, but it does not include all the required components in accordance with Title 2 U.S. Code of Federal Regulations ? 200.318. Questioned Costs: N/A Context: City of Willmar reviews and updates their policies on an annual basis to ensure compliance with Minnesota state statute requirements. Effect: There is an increased risk of noncompliance with federal program requirements. Cause: City of Willmar policies were updated in 2019 but the specific procurement requirements were not included. Recommendation: We recommend that City of Willmar revise the existing policies to include all procurement components of the Uniform Guidance. Views of Responsible Official: City of Willmar agrees with the finding and will adhere to the corrective action plan.

FINANCE City Office Building 333 SW 6th Street Box 755 Willmar, Minnesota 56201 320-235-4984 Fax 320-235-4917 www.willmarmn .gov CORRECTIVE ACTION PLAN City of Willmar respectfully submits the following corrective action plan. Audit Period: Year Ending December 31, 2020 FINDINGS - FEDERAL AWARDS PROGRAM Finding 2020-001 Uniform Guidance Written Procurement Policies and Procedures Officer Responsible for Ensuring CAP: Steve Okins, Finance Director Corrective Action Planned: City of Willmar will update procurement policies to conform to requirements in Title 2 U.S. Code of Federal Regulations. Planned Completion Date: September 2021