Audit 303639

Federal Agency: U.S. Department of Treasury Federal Program Titles: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Numbers: 21.027 Award Period: July 1, 2021, to June 30, 2022 Type of Finding: Material Weakness in Internal Control Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires that Contracts be awarded to the responsible offeror whose proposal is most advantageous to the non-Federal entity, with price and other factors considered. Condition: Based on our review of subjective scoring sheets completed by members of a selection panel for one request for qualifications (RFQ) process, we noted that the project was awarded to the consultant with the lower cumulative score. Additionally, upon review of the staff report for the project, we noted that the staff report indicated there were 4 members on the selection panel, yet we were provided with 5 scoring sheets. Upon inquiry of why the consultant with the lower score was selected and why fewer members of the selection committee were indicated on the staff report than what was expected (based on the number of scoring sheets provided), we were informed that one scoring sheet was excluded from the staff report because it was considered to be an outlier. The exclusion of this scoring sheet resulted in the consultant selected having a higher cumulative score. Questioned Costs: None. Context: This was the only procurement where these conditions were noted. Cause: The scoring sheet of one selection panel member was excluded from RFQ results presented to City Council. Effect: Incomplete information was presented to City Council for the selection of the consultant for the project. Recommendation: We recommend that unaltered results of RFQ procedures be presented to City Council. If staff believes there are reasons why a consultant, other than the one with the highest cumulative score should be selected, they may present their recommendation to select the consultant with a lower score to City Council.

Federal Agencies: U.S. Department of Justice & U.S. Department of Treasury Federal Program Titles: Equitable Sharing Program & Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Numbers: 16.922 & 21.027 Award Period: July 1, 2021, to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: The City was unable to provide evidence that suspension and debarment status of vendors was checked prior to entering into purchasing contracts. Questioned Costs: None. Context: 5 of 5 samples for the Equitable Sharing Program and 1 of 5 samples for the Coronavirus State and Local Fiscal Recovery Funds program. Cause: Procedures were not in place to retain evidence of debarment status check. Effect: The city is unable to prove that debarment checks took place prior to entering into purchasing contracts. Recommendation: We recommend that management review its procedures for retaining evidence of debarment status checked prior to entering into purchase agreements.

Federal Agencies: U.S. Department of Justice & U.S. Department of Treasury Federal Program Titles: Equitable Sharing Program & Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Numbers: 16.922 & 21.027 Award Period: July 1, 2021, to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: The City was unable to provide evidence that suspension and debarment status of vendors was checked prior to entering into purchasing contracts. Questioned Costs: None. Context: 5 of 5 samples for the Equitable Sharing Program and 1 of 5 samples for the Coronavirus State and Local Fiscal Recovery Funds program. Cause: Procedures were not in place to retain evidence of debarment status check. Effect: The city is unable to prove that debarment checks took place prior to entering into purchasing contracts. Recommendation: We recommend that management review its procedures for retaining evidence of debarment status checked prior to entering into purchase agreements.

Federal Agency: U.S. Department of Treasury Federal Program Titles: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Numbers: 21.027 Award Period: July 1, 2021, to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Criteria or Specific Requirement: As a best practice, a supervisory-level person, other than the preparer of a report, should review reports to ensure accuracy and completeness of data and information in the reports. Condition: Program reports were prepared and reviewed by the same individual. Questioned Costs: None. Context: 4 of 4 reports tested. Cause: Controls were not properly designed to assign someone other than the preparer of the reports to review them. Effect: Errors in reporting could go undetected. Recommendation: We recommend that reports be reviewed by a supervisory-level person who is not the preparer of the reports.

Federal Agency: U.S. Department of Treasury Federal Program Titles: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Numbers: 21.027 Award Period: July 1, 2021, to June 30, 2022 Type of Finding: Material Weakness in Internal Control Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires that Contracts be awarded to the responsible offeror whose proposal is most advantageous to the non-Federal entity, with price and other factors considered. Condition: Based on our review of subjective scoring sheets completed by members of a selection panel for one request for qualifications (RFQ) process, we noted that the project was awarded to the consultant with the lower cumulative score. Additionally, upon review of the staff report for the project, we noted that the staff report indicated there were 4 members on the selection panel, yet we were provided with 5 scoring sheets. Upon inquiry of why the consultant with the lower score was selected and why fewer members of the selection committee were indicated on the staff report than what was expected (based on the number of scoring sheets provided), we were informed that one scoring sheet was excluded from the staff report because it was considered to be an outlier. The exclusion of this scoring sheet resulted in the consultant selected having a higher cumulative score. Questioned Costs: None. Context: This was the only procurement where these conditions were noted. Cause: The scoring sheet of one selection panel member was excluded from RFQ results presented to City Council. Effect: Incomplete information was presented to City Council for the selection of the consultant for the project. Recommendation: We recommend that unaltered results of RFQ procedures be presented to City Council. If staff believes there are reasons why a consultant, other than the one with the highest cumulative score should be selected, they may present their recommendation to select the consultant with a lower score to City Council.

Federal Agencies: U.S. Department of Justice & U.S. Department of Treasury Federal Program Titles: Equitable Sharing Program & Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Numbers: 16.922 & 21.027 Award Period: July 1, 2021, to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: The City was unable to provide evidence that suspension and debarment status of vendors was checked prior to entering into purchasing contracts. Questioned Costs: None. Context: 5 of 5 samples for the Equitable Sharing Program and 1 of 5 samples for the Coronavirus State and Local Fiscal Recovery Funds program. Cause: Procedures were not in place to retain evidence of debarment status check. Effect: The city is unable to prove that debarment checks took place prior to entering into purchasing contracts. Recommendation: We recommend that management review its procedures for retaining evidence of debarment status checked prior to entering into purchase agreements.

Federal Agencies: U.S. Department of Justice & U.S. Department of Treasury Federal Program Titles: Equitable Sharing Program & Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Numbers: 16.922 & 21.027 Award Period: July 1, 2021, to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: The City was unable to provide evidence that suspension and debarment status of vendors was checked prior to entering into purchasing contracts. Questioned Costs: None. Context: 5 of 5 samples for the Equitable Sharing Program and 1 of 5 samples for the Coronavirus State and Local Fiscal Recovery Funds program. Cause: Procedures were not in place to retain evidence of debarment status check. Effect: The city is unable to prove that debarment checks took place prior to entering into purchasing contracts. Recommendation: We recommend that management review its procedures for retaining evidence of debarment status checked prior to entering into purchase agreements.

Federal Agency: U.S. Department of Treasury Federal Program Titles: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Numbers: 21.027 Award Period: July 1, 2021, to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Criteria or Specific Requirement: As a best practice, a supervisory-level person, other than the preparer of a report, should review reports to ensure accuracy and completeness of data and information in the reports. Condition: Program reports were prepared and reviewed by the same individual. Questioned Costs: None. Context: 4 of 4 reports tested. Cause: Controls were not properly designed to assign someone other than the preparer of the reports to review them. Effect: Errors in reporting could go undetected. Recommendation: We recommend that reports be reviewed by a supervisory-level person who is not the preparer of the reports.