Audit 22890

FY End
2022-12-31
Total Expended
$1.15M
Findings
10
Programs
5
Organization: Town of Erie (CO)
Year: 2022 Accepted: 2023-07-24

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
24403 2022-002 Significant Deficiency - I
24404 2022-002 Significant Deficiency - I
24405 2022-002 Significant Deficiency - I
24406 2022-002 Significant Deficiency - I
24407 2022-003 Significant Deficiency - I
600845 2022-002 Significant Deficiency - I
600846 2022-002 Significant Deficiency - I
600847 2022-002 Significant Deficiency - I
600848 2022-002 Significant Deficiency - I
600849 2022-003 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $222,971 Yes 1
20.106 Covid-19 - Airport Improvement Program $22,825 - 0
20.205 Highway Planning and Construction $18,000 Yes 1
93.575 Child Care and Development Fund $16,215 - 0
15.437 Minerals Leasing Act $9,531 - 0

Contacts

Name Title Type
X54EMT612417 Victoria Runkle Auditee
3039262750 Allison Slife Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. Amounts reported in the Schedule are recognized on the modified accrual basis when they become a demand on current available federal resources and eligibility requirements are met, except in the following program, which is reported in the Schedule on the cash basis: Child Care and Development Block Grant Cluster 93.575. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Town of Erie under programs of the federal government for the year ended December 31, 2022. No federal financial assistance was passed through to other entities. The information in this Schedule is presented in accordance with the requirements of 2 CFR Par 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance). Because the Schedule presents only a selected portion of the operations of the Town of Erie, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Erie.

Finding Details

Federal Agency: Department of Transportation Federal Program Name: Highway Planning and Construction Cluster Assistance Listing Number: 20.205 Pass-Through Agency: Colorado Department of Transportation Pass-Through Number(s): 21-HA4-XC-00012; 20-HA4-XC-00049; 21-HA4-XC-00095 Award Period: 1/1/2022 ? 12/31/2022 Compliance Requirement: Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a passthrough entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the Excluded Parties List System (EPLS) maintained by the General Services Administration (GSA) and available at https://governmentcontractregistration.com/sam-registration-and-renewal/, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Condition: We noted that the Town does have policies and procedures in place for compliance with suspension and debarment requirements; however, we noted that one out of five vendors selected for testing had not been checked to verify they were not suspended or debarred. We did verify these vendors were not currently suspended or debarred through verification per SAM.gov. Questioned costs: None. Context: The Town does have a policy and procedure to check a vendor's suspension and debarment status either by checking the active record on SAM.gov, collecting a certification from the proposed entity, and/or adding a clause or condition to the covered transaction with that entity. The Town was not able to provide verification of the suspension and debarment status through review of SAM.gov, providing a certification from the vendor, or through a clause or condition within the signed contract. We did verify these vendors were not currently suspended or debarred through review via SAM.gov. Cause: The Town did not verify one of the five vendors tested was in compliance with suspension and debarment requirements. Effect: The Town could make a payment to a vendor or subrecipient who is suspended and/or debarred from participating in federal programs. Repeat Finding: No. Recommendation: The Town should update all contracts to include a suspension and debarment paragraph to verify status with every renewal. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: Department of Transportation Federal Program Name: Highway Planning and Construction Cluster Assistance Listing Number: 20.205 Pass-Through Agency: Colorado Department of Transportation Pass-Through Number(s): 21-HA4-XC-00012; 20-HA4-XC-00049; 21-HA4-XC-00095 Award Period: 1/1/2022 ? 12/31/2022 Compliance Requirement: Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a passthrough entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the Excluded Parties List System (EPLS) maintained by the General Services Administration (GSA) and available at https://governmentcontractregistration.com/sam-registration-and-renewal/, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Condition: We noted that the Town does have policies and procedures in place for compliance with suspension and debarment requirements; however, we noted that one out of five vendors selected for testing had not been checked to verify they were not suspended or debarred. We did verify these vendors were not currently suspended or debarred through verification per SAM.gov. Questioned costs: None. Context: The Town does have a policy and procedure to check a vendor's suspension and debarment status either by checking the active record on SAM.gov, collecting a certification from the proposed entity, and/or adding a clause or condition to the covered transaction with that entity. The Town was not able to provide verification of the suspension and debarment status through review of SAM.gov, providing a certification from the vendor, or through a clause or condition within the signed contract. We did verify these vendors were not currently suspended or debarred through review via SAM.gov. Cause: The Town did not verify one of the five vendors tested was in compliance with suspension and debarment requirements. Effect: The Town could make a payment to a vendor or subrecipient who is suspended and/or debarred from participating in federal programs. Repeat Finding: No. Recommendation: The Town should update all contracts to include a suspension and debarment paragraph to verify status with every renewal. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: Department of Transportation Federal Program Name: Highway Planning and Construction Cluster Assistance Listing Number: 20.205 Pass-Through Agency: Colorado Department of Transportation Pass-Through Number(s): 21-HA4-XC-00012; 20-HA4-XC-00049; 21-HA4-XC-00095 Award Period: 1/1/2022 ? 12/31/2022 Compliance Requirement: Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a passthrough entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the Excluded Parties List System (EPLS) maintained by the General Services Administration (GSA) and available at https://governmentcontractregistration.com/sam-registration-and-renewal/, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Condition: We noted that the Town does have policies and procedures in place for compliance with suspension and debarment requirements; however, we noted that one out of five vendors selected for testing had not been checked to verify they were not suspended or debarred. We did verify these vendors were not currently suspended or debarred through verification per SAM.gov. Questioned costs: None. Context: The Town does have a policy and procedure to check a vendor's suspension and debarment status either by checking the active record on SAM.gov, collecting a certification from the proposed entity, and/or adding a clause or condition to the covered transaction with that entity. The Town was not able to provide verification of the suspension and debarment status through review of SAM.gov, providing a certification from the vendor, or through a clause or condition within the signed contract. We did verify these vendors were not currently suspended or debarred through review via SAM.gov. Cause: The Town did not verify one of the five vendors tested was in compliance with suspension and debarment requirements. Effect: The Town could make a payment to a vendor or subrecipient who is suspended and/or debarred from participating in federal programs. Repeat Finding: No. Recommendation: The Town should update all contracts to include a suspension and debarment paragraph to verify status with every renewal. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: Department of Transportation Federal Program Name: Highway Planning and Construction Cluster Assistance Listing Number: 20.205 Pass-Through Agency: Colorado Department of Transportation Pass-Through Number(s): 21-HA4-XC-00012; 20-HA4-XC-00049; 21-HA4-XC-00095 Award Period: 1/1/2022 ? 12/31/2022 Compliance Requirement: Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a passthrough entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the Excluded Parties List System (EPLS) maintained by the General Services Administration (GSA) and available at https://governmentcontractregistration.com/sam-registration-and-renewal/, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Condition: We noted that the Town does have policies and procedures in place for compliance with suspension and debarment requirements; however, we noted that one out of five vendors selected for testing had not been checked to verify they were not suspended or debarred. We did verify these vendors were not currently suspended or debarred through verification per SAM.gov. Questioned costs: None. Context: The Town does have a policy and procedure to check a vendor's suspension and debarment status either by checking the active record on SAM.gov, collecting a certification from the proposed entity, and/or adding a clause or condition to the covered transaction with that entity. The Town was not able to provide verification of the suspension and debarment status through review of SAM.gov, providing a certification from the vendor, or through a clause or condition within the signed contract. We did verify these vendors were not currently suspended or debarred through review via SAM.gov. Cause: The Town did not verify one of the five vendors tested was in compliance with suspension and debarment requirements. Effect: The Town could make a payment to a vendor or subrecipient who is suspended and/or debarred from participating in federal programs. Repeat Finding: No. Recommendation: The Town should update all contracts to include a suspension and debarment paragraph to verify status with every renewal. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: Department of the Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agency: None Pass-Through Number(s): None Award Period: 1/1/2022 ? 12/31/2022 Compliance Requirement: Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a passthrough entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the Excluded Parties List System (EPLS) maintained by the General Services Administration (GSA) and available at https://governmentcontractregistration.com/sam-registration-and-renewal/, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Condition: We noted that the Town does have policies and procedures in place for compliance with suspension and debarment requirements; however, we noted that neither of the two vendors selected for testing had not been checked to verify they were not suspended or debarred. We did verify these vendors were not currently suspended or debarred through verification per SAM.gov. Questioned costs: None. Context: The Town does have a policy and procedure to check a vendor's suspension and debarment status either by checking the active record on SAM.gov, collecting a certification from the proposed entity, and/or adding a clause or condition to the covered transaction with that entity. The Town was not able to provide verification of the suspension and debarment status through review of SAM.gov, providing a certification from the vendor, or through a clause or condition within the signed contract. We did verify these vendors were not currently suspended or debarred through review via SAM.gov. Cause: The Town did not verify either of the two vendors tested was in compliance with suspension and debarment requirements. Effect: The Town could make a payment to a vendor or subrecipient who is suspended and/or debarred from participating in federal programs. Repeat Finding: No. Recommendation: The Town should update all contracts to include a suspension and debarment paragraph to verify status with every renewal. Views of responsible officials: There is no disagreement with the audit finding. Town
Federal Agency: Department of Transportation Federal Program Name: Highway Planning and Construction Cluster Assistance Listing Number: 20.205 Pass-Through Agency: Colorado Department of Transportation Pass-Through Number(s): 21-HA4-XC-00012; 20-HA4-XC-00049; 21-HA4-XC-00095 Award Period: 1/1/2022 ? 12/31/2022 Compliance Requirement: Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a passthrough entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the Excluded Parties List System (EPLS) maintained by the General Services Administration (GSA) and available at https://governmentcontractregistration.com/sam-registration-and-renewal/, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Condition: We noted that the Town does have policies and procedures in place for compliance with suspension and debarment requirements; however, we noted that one out of five vendors selected for testing had not been checked to verify they were not suspended or debarred. We did verify these vendors were not currently suspended or debarred through verification per SAM.gov. Questioned costs: None. Context: The Town does have a policy and procedure to check a vendor's suspension and debarment status either by checking the active record on SAM.gov, collecting a certification from the proposed entity, and/or adding a clause or condition to the covered transaction with that entity. The Town was not able to provide verification of the suspension and debarment status through review of SAM.gov, providing a certification from the vendor, or through a clause or condition within the signed contract. We did verify these vendors were not currently suspended or debarred through review via SAM.gov. Cause: The Town did not verify one of the five vendors tested was in compliance with suspension and debarment requirements. Effect: The Town could make a payment to a vendor or subrecipient who is suspended and/or debarred from participating in federal programs. Repeat Finding: No. Recommendation: The Town should update all contracts to include a suspension and debarment paragraph to verify status with every renewal. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: Department of Transportation Federal Program Name: Highway Planning and Construction Cluster Assistance Listing Number: 20.205 Pass-Through Agency: Colorado Department of Transportation Pass-Through Number(s): 21-HA4-XC-00012; 20-HA4-XC-00049; 21-HA4-XC-00095 Award Period: 1/1/2022 ? 12/31/2022 Compliance Requirement: Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a passthrough entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the Excluded Parties List System (EPLS) maintained by the General Services Administration (GSA) and available at https://governmentcontractregistration.com/sam-registration-and-renewal/, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Condition: We noted that the Town does have policies and procedures in place for compliance with suspension and debarment requirements; however, we noted that one out of five vendors selected for testing had not been checked to verify they were not suspended or debarred. We did verify these vendors were not currently suspended or debarred through verification per SAM.gov. Questioned costs: None. Context: The Town does have a policy and procedure to check a vendor's suspension and debarment status either by checking the active record on SAM.gov, collecting a certification from the proposed entity, and/or adding a clause or condition to the covered transaction with that entity. The Town was not able to provide verification of the suspension and debarment status through review of SAM.gov, providing a certification from the vendor, or through a clause or condition within the signed contract. We did verify these vendors were not currently suspended or debarred through review via SAM.gov. Cause: The Town did not verify one of the five vendors tested was in compliance with suspension and debarment requirements. Effect: The Town could make a payment to a vendor or subrecipient who is suspended and/or debarred from participating in federal programs. Repeat Finding: No. Recommendation: The Town should update all contracts to include a suspension and debarment paragraph to verify status with every renewal. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: Department of Transportation Federal Program Name: Highway Planning and Construction Cluster Assistance Listing Number: 20.205 Pass-Through Agency: Colorado Department of Transportation Pass-Through Number(s): 21-HA4-XC-00012; 20-HA4-XC-00049; 21-HA4-XC-00095 Award Period: 1/1/2022 ? 12/31/2022 Compliance Requirement: Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a passthrough entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the Excluded Parties List System (EPLS) maintained by the General Services Administration (GSA) and available at https://governmentcontractregistration.com/sam-registration-and-renewal/, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Condition: We noted that the Town does have policies and procedures in place for compliance with suspension and debarment requirements; however, we noted that one out of five vendors selected for testing had not been checked to verify they were not suspended or debarred. We did verify these vendors were not currently suspended or debarred through verification per SAM.gov. Questioned costs: None. Context: The Town does have a policy and procedure to check a vendor's suspension and debarment status either by checking the active record on SAM.gov, collecting a certification from the proposed entity, and/or adding a clause or condition to the covered transaction with that entity. The Town was not able to provide verification of the suspension and debarment status through review of SAM.gov, providing a certification from the vendor, or through a clause or condition within the signed contract. We did verify these vendors were not currently suspended or debarred through review via SAM.gov. Cause: The Town did not verify one of the five vendors tested was in compliance with suspension and debarment requirements. Effect: The Town could make a payment to a vendor or subrecipient who is suspended and/or debarred from participating in federal programs. Repeat Finding: No. Recommendation: The Town should update all contracts to include a suspension and debarment paragraph to verify status with every renewal. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: Department of Transportation Federal Program Name: Highway Planning and Construction Cluster Assistance Listing Number: 20.205 Pass-Through Agency: Colorado Department of Transportation Pass-Through Number(s): 21-HA4-XC-00012; 20-HA4-XC-00049; 21-HA4-XC-00095 Award Period: 1/1/2022 ? 12/31/2022 Compliance Requirement: Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a passthrough entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the Excluded Parties List System (EPLS) maintained by the General Services Administration (GSA) and available at https://governmentcontractregistration.com/sam-registration-and-renewal/, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Condition: We noted that the Town does have policies and procedures in place for compliance with suspension and debarment requirements; however, we noted that one out of five vendors selected for testing had not been checked to verify they were not suspended or debarred. We did verify these vendors were not currently suspended or debarred through verification per SAM.gov. Questioned costs: None. Context: The Town does have a policy and procedure to check a vendor's suspension and debarment status either by checking the active record on SAM.gov, collecting a certification from the proposed entity, and/or adding a clause or condition to the covered transaction with that entity. The Town was not able to provide verification of the suspension and debarment status through review of SAM.gov, providing a certification from the vendor, or through a clause or condition within the signed contract. We did verify these vendors were not currently suspended or debarred through review via SAM.gov. Cause: The Town did not verify one of the five vendors tested was in compliance with suspension and debarment requirements. Effect: The Town could make a payment to a vendor or subrecipient who is suspended and/or debarred from participating in federal programs. Repeat Finding: No. Recommendation: The Town should update all contracts to include a suspension and debarment paragraph to verify status with every renewal. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: Department of the Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agency: None Pass-Through Number(s): None Award Period: 1/1/2022 ? 12/31/2022 Compliance Requirement: Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a passthrough entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the Excluded Parties List System (EPLS) maintained by the General Services Administration (GSA) and available at https://governmentcontractregistration.com/sam-registration-and-renewal/, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Condition: We noted that the Town does have policies and procedures in place for compliance with suspension and debarment requirements; however, we noted that neither of the two vendors selected for testing had not been checked to verify they were not suspended or debarred. We did verify these vendors were not currently suspended or debarred through verification per SAM.gov. Questioned costs: None. Context: The Town does have a policy and procedure to check a vendor's suspension and debarment status either by checking the active record on SAM.gov, collecting a certification from the proposed entity, and/or adding a clause or condition to the covered transaction with that entity. The Town was not able to provide verification of the suspension and debarment status through review of SAM.gov, providing a certification from the vendor, or through a clause or condition within the signed contract. We did verify these vendors were not currently suspended or debarred through review via SAM.gov. Cause: The Town did not verify either of the two vendors tested was in compliance with suspension and debarment requirements. Effect: The Town could make a payment to a vendor or subrecipient who is suspended and/or debarred from participating in federal programs. Repeat Finding: No. Recommendation: The Town should update all contracts to include a suspension and debarment paragraph to verify status with every renewal. Views of responsible officials: There is no disagreement with the audit finding. Town