CITY OF LOXLEYLocal Government

Criteria: The Uniform Guidance requires non-federal entities to maintain written procurement policies and procedures that comply with federal regulations, ensuring procurements are conducted through full and open competition while avoiding conflicts of interest. In addition, unless a waiver is obtained, the City must comply with the Build America, Buy America (BABA) Act's domestic preference provisions for all infrastructure projects. Under Section 70914 of the BABA Act, all iron, steel, manufactured products, and construction materials used in these projects must be produced in the United States. The Uniform Guidance further requires the City to maintain documented procurement procedures and monitor contractor compliance with project agreement terms, including BABA provisions. Condition: During our audit, we identified the City had not adopted documented procurement procedures until after the audit period concluded. As a result, the required policies under the Uniform Guidance (2 CFR Part 200.318) were not in place during the period under audit. Additionally, while the City included BABA provisions in its contract agreements, it failed to establish monitoring policies and procedures to verify contractor compliance with the BABA requirements. Cause: The entity has not developed or implemented written procurement policies and procedures. Additionally, the City did not establish policies and procedures to monitor contractor compliance with BABA requirements. Effect: Without documented procurement policies, there is an increased risk of non-compliance with federal procurement standards, potential conflicts of interest, and inefficient use of federal funds. As a result, the City did not ensure contractors complied with the BABA provisions. Repeat Finding: Similar finding in the prior year. Recommendation We recommend that the entity develop and implement written procurement policies and procedures that comply with the Uniform Guidance. These policies should include standards of conduct covering conflicts of interest, procurement methods, and documentation requirements. Additionally, the City should implement and enforce policies and procedures to monitor infrastructure projects to ensure contractor compliance with BABA requirements.

FINDING 2024-004 PROCUREMENT, SUSPENSION, AND DISBARMENT SIGNIFICANT DEFICIENCY Water and Waste Disposal Systems for Rural Communities COVID-19 State and Local Fiscal Recovery Fund Assistance Listing Number: 10.760 and 21.027 Grant Number: Various Grant Period: Various Criteria According to the Uniform Guidance, non-federal entities must have written procurement policies and procedures that comply with federal regulations. These policies should ensure that procurements are conducted in a manner providing full and open competition, and that conflicts of interest are avoided. Condition During our audit, we noted that the City does not have documented procurement policies and procedures in place as required by the Uniform Guidance (2 CFR Part 200.318). Cause The City has not developed or implemented written procurement policies and procedures. Effect Without documented procurement policies, there is an increased risk of noncompliance with federal procurement standards, potential conflicts of interest, and inefficient use of federal funds. Recommendation We recommend that the City develop and implement written procurement policies and procedures that comply with the Uniform Guidance. These policies should include standards of conduct covering conflicts of interest, procurement methods, and documentation requirements.