Audit 303681

Finding: 2023-001-Material Weakness Agency: U.S. Department of the Treasury Program: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number: 21.027 SUSPENSION AND DEBARMENT Criteria - 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. “Covered transactions” include those procurement contracts for goods and services awarded under 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. This requirement applies to contracts entered into to procure goods and services with Coronavirus State and Local Fiscal Recovery Funds. Condition - The Town of Foster does not have a specific procedure in place for verifying that an entity with which it plans to enter into a covered transaction is not suspended, debarred or otherwise excluded. Cause - The Town has not established suspension and debarment policies and procedures for federal awards. Effect – Contracts for goods and service that were “covered transactions” were entered into prior to verifying that an entity was not suspended, debarred or otherwise excluded. Questioned Costs – None Identification of a Repeat Finding- This is a repeat finding from the previous audit 2022-001. Recommendation- We recommend that the Town implement verfication procedures to ensure that an entity with which it plans to enter into a covered transaction is not suspended, debarred or otherwise excluded. Auditee’s Views- Management implemented a Corrective Action Plan for all future contracts awarded. These procedures include adding the required contract language to all contracts and obtaining the professional’s certification that they are not suspended, debarred, or otherwise excluded from participating in the transaction at the time of contract award. In addition, prior to award, the entity confirms through the System for Award Management (SAM.gov) website that the contractor is not suspended, debarred, or otherwise excluded from participating in the transaction. This process was not implemented until late in the 2023 fiscal year.

Finding: 2023-001-Material Weakness Agency: U.S. Department of the Treasury Program: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number: 21.027 SUSPENSION AND DEBARMENT Criteria - 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. “Covered transactions” include those procurement contracts for goods and services awarded under 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. This requirement applies to contracts entered into to procure goods and services with Coronavirus State and Local Fiscal Recovery Funds. Condition - The Town of Foster does not have a specific procedure in place for verifying that an entity with which it plans to enter into a covered transaction is not suspended, debarred or otherwise excluded. Cause - The Town has not established suspension and debarment policies and procedures for federal awards. Effect – Contracts for goods and service that were “covered transactions” were entered into prior to verifying that an entity was not suspended, debarred or otherwise excluded. Questioned Costs – None Identification of a Repeat Finding- This is a repeat finding from the previous audit 2022-001. Recommendation- We recommend that the Town implement verfication procedures to ensure that an entity with which it plans to enter into a covered transaction is not suspended, debarred or otherwise excluded. Auditee’s Views- Management implemented a Corrective Action Plan for all future contracts awarded. These procedures include adding the required contract language to all contracts and obtaining the professional’s certification that they are not suspended, debarred, or otherwise excluded from participating in the transaction at the time of contract award. In addition, prior to award, the entity confirms through the System for Award Management (SAM.gov) website that the contractor is not suspended, debarred, or otherwise excluded from participating in the transaction. This process was not implemented until late in the 2023 fiscal year.