Audit 311151

GRANT REPORTING U.S. Department of Treasury ALN 21.027 – Coronavirus State and Local Fiscal Recovery Funds Contract No. 23.saa.900.46 (2023) Passed through the Florida Department of State Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. Reports and reimbursement requests should be subject to independent review to verify completeness, validity and timeliness of submission. Condition: Review of quarterly reports was not documented by City officials before submittal by their third party consultant. Cause of condition: The City does not have a process in place to document their review of progress reports submitted to the Florida Department of State by their third party consultant. Potential effect of condition: Reports submitted to the Florida Department of State may be incomplete, include errors, or be submitted late. Perspective: The City utilized a third party consultant to assist in the management of this specific grant contract under this federal program. CRI noted the City did have documentation of review of grant reports prepared by the City for the other grant contract awarded to the City under this federal program. Questioned costs: None. Recommendation: The City should review and revise, as needed, its current control structure over grant reporting to ensure that all required reports are independently reviewed prior to being submitted to the grantor. This should include review of reports prepared by any third party consultants. Management’s Response: The City will update its control process to incorporate procedures to ensure that reviews of reports prepared by third party consultants are subject to independent review by City personnel prior to the reports being remitted to the grantor and that such reviews will be documented.

SUSPENSION AND DEBARMENT U.S. Department of Treasury ALN 21.027 – Coronavirus State and Local Fiscal Recovery Funds Contract No. 23.saa.900.46 (2023) Passed through the Florida Department of State U.S. Department of Environmental Protection ALN 66.458 – Clean Water State Revolving Funds Cluster Contract No. WW6409A0/4C-02D38022-0 (2022) Passed through the Florida Department of Environmental Protection U.S. Department of Environmental Protection ALN 66.468 – Drinking Water State Revolving Funds Cluster Contract No. DW640990/FS98452220-0 (2021) Passed through the Florida Department of Environmental Protection Criteria: 2 CFR 180.300 requires the City to ensure vendors and contractors are not disqualified, excluded, or debarred prior to entering into a covered transaction. Further, 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. The City should have a process to ensure compliance with 2 CFR 180.300. Condition: The City did not document their initial verification (SAM check) that a vendor was not suspended or debarred before entering into a covered transaction for all vendors and contractors participating on Federally-funded projects, and follow-up verifications were not consistently performed. Cause of condition: Procedures for documentation of verification that vendors or contractors were eligible to participate on federally-funded projects checks were not consistently applied to all vendors. Potential effect of condition: Without initial verification of a vendor’s status to participate on federally-funded projects and timely follow-up SAM checks, the City may inadvertently enter into covered transactions with federally suspended or debarred vendors. Perspective: The City properly performed SAM checks for some, but not all, of the vendors and contractors used in covered transactions. None of the vendors tested during our audit were disqualified, excluded, or debarred per verification performed by the auditors. Additionally, the Florida Department of Environmental Protection and the Florida Department of State provide for on-going oversight and review, which mitigates the risk of non-compliance. Questioned costs: None. Recommendation: The City should evaluate its current procedures for ensuring that vendors are eligible to participate in federally-funded projects prior to signing contracts or issuing purchase orders to those vendors. Changes to procedures should be implemented, as necessary, to improve controls over compliance. Additionally, a process for periodic follow-up verification should be performed no less than annually. Management’s Response: The City will set up the following controls to monitor and ensure compliance with Sam.gov requirements on an ongoing basis. • The City’s procurement process for federally funded projects will include an item on the Vendor Questionnaire where vendors can upload their Sam.gov proof at the time of their bid submission. • The City’s Purchasing staff will review all bid submissions against Sam.gov and provide screenshots of when the information was checked. These screenshots will be saved in the bid file. Any vendor that does not show an active Sam.gov status will be rejected as non-responsive. • Any new vendor that is intended for use on a federally funded project will also be checked at the time of vendor entry into the City’s financial software by Finance. A copy of this Sam.gov check will be included with the vendor file. • Current vendors will be checked for Sam.gov compliance on an annual basis. The annual checks will be screenshot and uploaded into the vendor files. Vendor files will be updated accordingly with the date of the Sam.gov check by Finance. The annual compliance check will become part of the end-of-fiscal year closeout process. • Current vendors working on federally funded projects will also be checked for Sam.gov compliance at the time of any change order, amendment, or contract adjustment that is requested.

SUSPENSION AND DEBARMENT U.S. Department of Treasury ALN 21.027 – Coronavirus State and Local Fiscal Recovery Funds Contract No. 23.saa.900.46 (2023) Passed through the Florida Department of State U.S. Department of Environmental Protection ALN 66.458 – Clean Water State Revolving Funds Cluster Contract No. WW6409A0/4C-02D38022-0 (2022) Passed through the Florida Department of Environmental Protection U.S. Department of Environmental Protection ALN 66.468 – Drinking Water State Revolving Funds Cluster Contract No. DW640990/FS98452220-0 (2021) Passed through the Florida Department of Environmental Protection Criteria: 2 CFR 180.300 requires the City to ensure vendors and contractors are not disqualified, excluded, or debarred prior to entering into a covered transaction. Further, 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. The City should have a process to ensure compliance with 2 CFR 180.300. Condition: The City did not document their initial verification (SAM check) that a vendor was not suspended or debarred before entering into a covered transaction for all vendors and contractors participating on Federally-funded projects, and follow-up verifications were not consistently performed. Cause of condition: Procedures for documentation of verification that vendors or contractors were eligible to participate on federally-funded projects checks were not consistently applied to all vendors. Potential effect of condition: Without initial verification of a vendor’s status to participate on federally-funded projects and timely follow-up SAM checks, the City may inadvertently enter into covered transactions with federally suspended or debarred vendors. Perspective: The City properly performed SAM checks for some, but not all, of the vendors and contractors used in covered transactions. None of the vendors tested during our audit were disqualified, excluded, or debarred per verification performed by the auditors. Additionally, the Florida Department of Environmental Protection and the Florida Department of State provide for on-going oversight and review, which mitigates the risk of non-compliance. Questioned costs: None. Recommendation: The City should evaluate its current procedures for ensuring that vendors are eligible to participate in federally-funded projects prior to signing contracts or issuing purchase orders to those vendors. Changes to procedures should be implemented, as necessary, to improve controls over compliance. Additionally, a process for periodic follow-up verification should be performed no less than annually. Management’s Response: The City will set up the following controls to monitor and ensure compliance with Sam.gov requirements on an ongoing basis. • The City’s procurement process for federally funded projects will include an item on the Vendor Questionnaire where vendors can upload their Sam.gov proof at the time of their bid submission. • The City’s Purchasing staff will review all bid submissions against Sam.gov and provide screenshots of when the information was checked. These screenshots will be saved in the bid file. Any vendor that does not show an active Sam.gov status will be rejected as non-responsive. • Any new vendor that is intended for use on a federally funded project will also be checked at the time of vendor entry into the City’s financial software by Finance. A copy of this Sam.gov check will be included with the vendor file. • Current vendors will be checked for Sam.gov compliance on an annual basis. The annual checks will be screenshot and uploaded into the vendor files. Vendor files will be updated accordingly with the date of the Sam.gov check by Finance. The annual compliance check will become part of the end-of-fiscal year closeout process. • Current vendors working on federally funded projects will also be checked for Sam.gov compliance at the time of any change order, amendment, or contract adjustment that is requested.

SUSPENSION AND DEBARMENT U.S. Department of Treasury ALN 21.027 – Coronavirus State and Local Fiscal Recovery Funds Contract No. 23.saa.900.46 (2023) Passed through the Florida Department of State U.S. Department of Environmental Protection ALN 66.458 – Clean Water State Revolving Funds Cluster Contract No. WW6409A0/4C-02D38022-0 (2022) Passed through the Florida Department of Environmental Protection U.S. Department of Environmental Protection ALN 66.468 – Drinking Water State Revolving Funds Cluster Contract No. DW640990/FS98452220-0 (2021) Passed through the Florida Department of Environmental Protection Criteria: 2 CFR 180.300 requires the City to ensure vendors and contractors are not disqualified, excluded, or debarred prior to entering into a covered transaction. Further, 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. The City should have a process to ensure compliance with 2 CFR 180.300. Condition: The City did not document their initial verification (SAM check) that a vendor was not suspended or debarred before entering into a covered transaction for all vendors and contractors participating on Federally-funded projects, and follow-up verifications were not consistently performed. Cause of condition: Procedures for documentation of verification that vendors or contractors were eligible to participate on federally-funded projects checks were not consistently applied to all vendors. Potential effect of condition: Without initial verification of a vendor’s status to participate on federally-funded projects and timely follow-up SAM checks, the City may inadvertently enter into covered transactions with federally suspended or debarred vendors. Perspective: The City properly performed SAM checks for some, but not all, of the vendors and contractors used in covered transactions. None of the vendors tested during our audit were disqualified, excluded, or debarred per verification performed by the auditors. Additionally, the Florida Department of Environmental Protection and the Florida Department of State provide for on-going oversight and review, which mitigates the risk of non-compliance. Questioned costs: None. Recommendation: The City should evaluate its current procedures for ensuring that vendors are eligible to participate in federally-funded projects prior to signing contracts or issuing purchase orders to those vendors. Changes to procedures should be implemented, as necessary, to improve controls over compliance. Additionally, a process for periodic follow-up verification should be performed no less than annually. Management’s Response: The City will set up the following controls to monitor and ensure compliance with Sam.gov requirements on an ongoing basis. • The City’s procurement process for federally funded projects will include an item on the Vendor Questionnaire where vendors can upload their Sam.gov proof at the time of their bid submission. • The City’s Purchasing staff will review all bid submissions against Sam.gov and provide screenshots of when the information was checked. These screenshots will be saved in the bid file. Any vendor that does not show an active Sam.gov status will be rejected as non-responsive. • Any new vendor that is intended for use on a federally funded project will also be checked at the time of vendor entry into the City’s financial software by Finance. A copy of this Sam.gov check will be included with the vendor file. • Current vendors will be checked for Sam.gov compliance on an annual basis. The annual checks will be screenshot and uploaded into the vendor files. Vendor files will be updated accordingly with the date of the Sam.gov check by Finance. The annual compliance check will become part of the end-of-fiscal year closeout process. • Current vendors working on federally funded projects will also be checked for Sam.gov compliance at the time of any change order, amendment, or contract adjustment that is requested.

GRANT REPORTING U.S. Department of Treasury ALN 21.027 – Coronavirus State and Local Fiscal Recovery Funds Contract No. 23.saa.900.46 (2023) Passed through the Florida Department of State Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. Reports and reimbursement requests should be subject to independent review to verify completeness, validity and timeliness of submission. Condition: Review of quarterly reports was not documented by City officials before submittal by their third party consultant. Cause of condition: The City does not have a process in place to document their review of progress reports submitted to the Florida Department of State by their third party consultant. Potential effect of condition: Reports submitted to the Florida Department of State may be incomplete, include errors, or be submitted late. Perspective: The City utilized a third party consultant to assist in the management of this specific grant contract under this federal program. CRI noted the City did have documentation of review of grant reports prepared by the City for the other grant contract awarded to the City under this federal program. Questioned costs: None. Recommendation: The City should review and revise, as needed, its current control structure over grant reporting to ensure that all required reports are independently reviewed prior to being submitted to the grantor. This should include review of reports prepared by any third party consultants. Management’s Response: The City will update its control process to incorporate procedures to ensure that reviews of reports prepared by third party consultants are subject to independent review by City personnel prior to the reports being remitted to the grantor and that such reviews will be documented.

SUSPENSION AND DEBARMENT U.S. Department of Treasury ALN 21.027 – Coronavirus State and Local Fiscal Recovery Funds Contract No. 23.saa.900.46 (2023) Passed through the Florida Department of State U.S. Department of Environmental Protection ALN 66.458 – Clean Water State Revolving Funds Cluster Contract No. WW6409A0/4C-02D38022-0 (2022) Passed through the Florida Department of Environmental Protection U.S. Department of Environmental Protection ALN 66.468 – Drinking Water State Revolving Funds Cluster Contract No. DW640990/FS98452220-0 (2021) Passed through the Florida Department of Environmental Protection Criteria: 2 CFR 180.300 requires the City to ensure vendors and contractors are not disqualified, excluded, or debarred prior to entering into a covered transaction. Further, 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. The City should have a process to ensure compliance with 2 CFR 180.300. Condition: The City did not document their initial verification (SAM check) that a vendor was not suspended or debarred before entering into a covered transaction for all vendors and contractors participating on Federally-funded projects, and follow-up verifications were not consistently performed. Cause of condition: Procedures for documentation of verification that vendors or contractors were eligible to participate on federally-funded projects checks were not consistently applied to all vendors. Potential effect of condition: Without initial verification of a vendor’s status to participate on federally-funded projects and timely follow-up SAM checks, the City may inadvertently enter into covered transactions with federally suspended or debarred vendors. Perspective: The City properly performed SAM checks for some, but not all, of the vendors and contractors used in covered transactions. None of the vendors tested during our audit were disqualified, excluded, or debarred per verification performed by the auditors. Additionally, the Florida Department of Environmental Protection and the Florida Department of State provide for on-going oversight and review, which mitigates the risk of non-compliance. Questioned costs: None. Recommendation: The City should evaluate its current procedures for ensuring that vendors are eligible to participate in federally-funded projects prior to signing contracts or issuing purchase orders to those vendors. Changes to procedures should be implemented, as necessary, to improve controls over compliance. Additionally, a process for periodic follow-up verification should be performed no less than annually. Management’s Response: The City will set up the following controls to monitor and ensure compliance with Sam.gov requirements on an ongoing basis. • The City’s procurement process for federally funded projects will include an item on the Vendor Questionnaire where vendors can upload their Sam.gov proof at the time of their bid submission. • The City’s Purchasing staff will review all bid submissions against Sam.gov and provide screenshots of when the information was checked. These screenshots will be saved in the bid file. Any vendor that does not show an active Sam.gov status will be rejected as non-responsive. • Any new vendor that is intended for use on a federally funded project will also be checked at the time of vendor entry into the City’s financial software by Finance. A copy of this Sam.gov check will be included with the vendor file. • Current vendors will be checked for Sam.gov compliance on an annual basis. The annual checks will be screenshot and uploaded into the vendor files. Vendor files will be updated accordingly with the date of the Sam.gov check by Finance. The annual compliance check will become part of the end-of-fiscal year closeout process. • Current vendors working on federally funded projects will also be checked for Sam.gov compliance at the time of any change order, amendment, or contract adjustment that is requested.

SUSPENSION AND DEBARMENT U.S. Department of Treasury ALN 21.027 – Coronavirus State and Local Fiscal Recovery Funds Contract No. 23.saa.900.46 (2023) Passed through the Florida Department of State U.S. Department of Environmental Protection ALN 66.458 – Clean Water State Revolving Funds Cluster Contract No. WW6409A0/4C-02D38022-0 (2022) Passed through the Florida Department of Environmental Protection U.S. Department of Environmental Protection ALN 66.468 – Drinking Water State Revolving Funds Cluster Contract No. DW640990/FS98452220-0 (2021) Passed through the Florida Department of Environmental Protection Criteria: 2 CFR 180.300 requires the City to ensure vendors and contractors are not disqualified, excluded, or debarred prior to entering into a covered transaction. Further, 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. The City should have a process to ensure compliance with 2 CFR 180.300. Condition: The City did not document their initial verification (SAM check) that a vendor was not suspended or debarred before entering into a covered transaction for all vendors and contractors participating on Federally-funded projects, and follow-up verifications were not consistently performed. Cause of condition: Procedures for documentation of verification that vendors or contractors were eligible to participate on federally-funded projects checks were not consistently applied to all vendors. Potential effect of condition: Without initial verification of a vendor’s status to participate on federally-funded projects and timely follow-up SAM checks, the City may inadvertently enter into covered transactions with federally suspended or debarred vendors. Perspective: The City properly performed SAM checks for some, but not all, of the vendors and contractors used in covered transactions. None of the vendors tested during our audit were disqualified, excluded, or debarred per verification performed by the auditors. Additionally, the Florida Department of Environmental Protection and the Florida Department of State provide for on-going oversight and review, which mitigates the risk of non-compliance. Questioned costs: None. Recommendation: The City should evaluate its current procedures for ensuring that vendors are eligible to participate in federally-funded projects prior to signing contracts or issuing purchase orders to those vendors. Changes to procedures should be implemented, as necessary, to improve controls over compliance. Additionally, a process for periodic follow-up verification should be performed no less than annually. Management’s Response: The City will set up the following controls to monitor and ensure compliance with Sam.gov requirements on an ongoing basis. • The City’s procurement process for federally funded projects will include an item on the Vendor Questionnaire where vendors can upload their Sam.gov proof at the time of their bid submission. • The City’s Purchasing staff will review all bid submissions against Sam.gov and provide screenshots of when the information was checked. These screenshots will be saved in the bid file. Any vendor that does not show an active Sam.gov status will be rejected as non-responsive. • Any new vendor that is intended for use on a federally funded project will also be checked at the time of vendor entry into the City’s financial software by Finance. A copy of this Sam.gov check will be included with the vendor file. • Current vendors will be checked for Sam.gov compliance on an annual basis. The annual checks will be screenshot and uploaded into the vendor files. Vendor files will be updated accordingly with the date of the Sam.gov check by Finance. The annual compliance check will become part of the end-of-fiscal year closeout process. • Current vendors working on federally funded projects will also be checked for Sam.gov compliance at the time of any change order, amendment, or contract adjustment that is requested.

SUSPENSION AND DEBARMENT U.S. Department of Treasury ALN 21.027 – Coronavirus State and Local Fiscal Recovery Funds Contract No. 23.saa.900.46 (2023) Passed through the Florida Department of State U.S. Department of Environmental Protection ALN 66.458 – Clean Water State Revolving Funds Cluster Contract No. WW6409A0/4C-02D38022-0 (2022) Passed through the Florida Department of Environmental Protection U.S. Department of Environmental Protection ALN 66.468 – Drinking Water State Revolving Funds Cluster Contract No. DW640990/FS98452220-0 (2021) Passed through the Florida Department of Environmental Protection Criteria: 2 CFR 180.300 requires the City to ensure vendors and contractors are not disqualified, excluded, or debarred prior to entering into a covered transaction. Further, 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. The City should have a process to ensure compliance with 2 CFR 180.300. Condition: The City did not document their initial verification (SAM check) that a vendor was not suspended or debarred before entering into a covered transaction for all vendors and contractors participating on Federally-funded projects, and follow-up verifications were not consistently performed. Cause of condition: Procedures for documentation of verification that vendors or contractors were eligible to participate on federally-funded projects checks were not consistently applied to all vendors. Potential effect of condition: Without initial verification of a vendor’s status to participate on federally-funded projects and timely follow-up SAM checks, the City may inadvertently enter into covered transactions with federally suspended or debarred vendors. Perspective: The City properly performed SAM checks for some, but not all, of the vendors and contractors used in covered transactions. None of the vendors tested during our audit were disqualified, excluded, or debarred per verification performed by the auditors. Additionally, the Florida Department of Environmental Protection and the Florida Department of State provide for on-going oversight and review, which mitigates the risk of non-compliance. Questioned costs: None. Recommendation: The City should evaluate its current procedures for ensuring that vendors are eligible to participate in federally-funded projects prior to signing contracts or issuing purchase orders to those vendors. Changes to procedures should be implemented, as necessary, to improve controls over compliance. Additionally, a process for periodic follow-up verification should be performed no less than annually. Management’s Response: The City will set up the following controls to monitor and ensure compliance with Sam.gov requirements on an ongoing basis. • The City’s procurement process for federally funded projects will include an item on the Vendor Questionnaire where vendors can upload their Sam.gov proof at the time of their bid submission. • The City’s Purchasing staff will review all bid submissions against Sam.gov and provide screenshots of when the information was checked. These screenshots will be saved in the bid file. Any vendor that does not show an active Sam.gov status will be rejected as non-responsive. • Any new vendor that is intended for use on a federally funded project will also be checked at the time of vendor entry into the City’s financial software by Finance. A copy of this Sam.gov check will be included with the vendor file. • Current vendors will be checked for Sam.gov compliance on an annual basis. The annual checks will be screenshot and uploaded into the vendor files. Vendor files will be updated accordingly with the date of the Sam.gov check by Finance. The annual compliance check will become part of the end-of-fiscal year closeout process. • Current vendors working on federally funded projects will also be checked for Sam.gov compliance at the time of any change order, amendment, or contract adjustment that is requested.