FAC Explorer

Audit 324949

FY End
2023-06-30
Total Expended
$1.98M
Findings
10
Programs
3
Organization: City of Commerce (CA)
Year: 2023 Accepted: 2024-10-16
Auditor: The Pun Group LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
503005 2023-005 Significant Deficiency - I
503006 2023-005 Significant Deficiency - I
503007 2023-005 Significant Deficiency - I
503008 2023-005 Significant Deficiency - I
503009 2023-005 Significant Deficiency - I
1079447 2023-005 Significant Deficiency - I
1079448 2023-005 Significant Deficiency - I
1079449 2023-005 Significant Deficiency - I
1079450 2023-005 Significant Deficiency - I
1079451 2023-005 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
20.507 Federal Transit_formula Grants $512,253 Yes 1
16.710 Public Safety Partnership and Community Policing Grants $178,516 - 0
14.218 Community Development Block Grants/entitlement Grants $106,614 - 0

Contacts

Name Title Type
M8YABMYN1PK5 Vilko Domic Auditee
3237224805 Ross Gotthoffer Auditor
No contacts on file

Notes to SEFA

Title: Reporting Entity Accounting Policies: The various grant programs have been recorded within the general fund and special revenue funds of the City. The City utilizes the modified accrual method of accounting for the general fund and special revenue funds. The accompanying Schedule of Expenditures of Federal Awards (“Schedule”) is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in, the preparation of the City’s basic financial statements. De Minimis Rate Used: N Rate Explanation: The City has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance. The financial reporting entity, as defined by the Governmental Accounting Standards Board (“GASB”) Codification, consists of the primary government, which is the City of Commerce, California (the “City”), organizations for which the primary government is financially accountable, and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause City’s financial statements to be misleading or incomplete. The City Council acts as the governing body and is able to impose its will on the following organizations, establishing financial accountability: - Commerce Joint Powers Financing Authority (“JPFA”)
Title: Schedule of Expenditures of Federal Awards Accounting Policies: The various grant programs have been recorded within the general fund and special revenue funds of the City. The City utilizes the modified accrual method of accounting for the general fund and special revenue funds. The accompanying Schedule of Expenditures of Federal Awards (“Schedule”) is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in, the preparation of the City’s basic financial statements. De Minimis Rate Used: N Rate Explanation: The City has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance. The accompanying Schedule presents the activity of all federal financial assistance programs of the City. Federal financial assistance received directly from federal agencies as well as federal financial assistance passed through the State of California and County of Los Angeles is included in the Schedule. The Schedule was prepared from only the accounts of various grant programs and, therefore, does not present the financial position, change in fund balance, or results of operations of the City.
Title: Subrecipients Accounting Policies: The various grant programs have been recorded within the general fund and special revenue funds of the City. The City utilizes the modified accrual method of accounting for the general fund and special revenue funds. The accompanying Schedule of Expenditures of Federal Awards (“Schedule”) is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in, the preparation of the City’s basic financial statements. De Minimis Rate Used: N Rate Explanation: The City has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance. During the fiscal year ended June 30, 2023, there were no amounts provided to subrecipients.

Finding Details

Finding 2023-005
Identification of the Federal Program: Assistance Listing Number: 20.507 Assistance Listing Title: Federal Transit Cluster Federal Agency: U.S. Department of Transportation Federal Award Identification Number: 1650-2020-2; CA-2021-115-00; CA-2022-135-00; CA-2023-034-00; CA-2023-167-0 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Prior to entering into subawards and contracts with award funds, recipients must ensure that contractors and subcontractors are not suspended from participating in federally funded projects. Verification is typically done by reviewing the System for Award Management (“SAM”) database and including certifications in contacts. Condition: During the audit over suspension and debarment, we noted that there was no documentation on whether the vendors were checked against the SAM database or obtained required certifications before contract awards. Cause: Also, there is no formal policies or procedures on the verification of the suspension and debarment status of vendors before entering into a contract. There was no support for 4 out of 4 Federal Transit Cluster vendors selected for testing to show suspension and debarment check was performed prior to contracting. Effect or Potential Effect: Without verifying whether vendors are suspended or debarred from working on federally-funded projects prior to the contract being awarded, the City could be contracting with vendors that are prohibited from working on federally funded projects and incurring potentially disallowed costs. Questioned Costs: None noted. Context: See condition above for the context of the procurement finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommended the City update its purchasing policies and related procedures and to follow the new policies and procedures to be in compliance with Uniform Guidance related to procurement, suspension and debarment and improve its documentation on RFQ evaluation and suspension and debarment check. Views of Responsible Officials: The City of Commerce will ensure, before contracting, that none of its vendors are suspended, debarred, ineligible, or voluntarily excluded from participating in federally assisted transactions or procurements. To accomplish this, the City of Commerce will verify that the vendors are not excluded or disqualified by checking SAM exclusions (at SAM.gov), collecting a certification, or adding a clause or condition to the covered transaction. As a best practice, the City of Commerce will print the screen with the search results to include in the award or procurement file or to have a checklist noting when the SAM.gov was reviewed. If the City of Commerce becomes aware after the vendor award that an excluded party is participating in a covered transaction, the City shall promptly inform the FTA regional office in writing of this information.
Finding 2023-005
Identification of the Federal Program: Assistance Listing Number: 20.507 Assistance Listing Title: Federal Transit Cluster Federal Agency: U.S. Department of Transportation Federal Award Identification Number: 1650-2020-2; CA-2021-115-00; CA-2022-135-00; CA-2023-034-00; CA-2023-167-0 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Prior to entering into subawards and contracts with award funds, recipients must ensure that contractors and subcontractors are not suspended from participating in federally funded projects. Verification is typically done by reviewing the System for Award Management (“SAM”) database and including certifications in contacts. Condition: During the audit over suspension and debarment, we noted that there was no documentation on whether the vendors were checked against the SAM database or obtained required certifications before contract awards. Cause: Also, there is no formal policies or procedures on the verification of the suspension and debarment status of vendors before entering into a contract. There was no support for 4 out of 4 Federal Transit Cluster vendors selected for testing to show suspension and debarment check was performed prior to contracting. Effect or Potential Effect: Without verifying whether vendors are suspended or debarred from working on federally-funded projects prior to the contract being awarded, the City could be contracting with vendors that are prohibited from working on federally funded projects and incurring potentially disallowed costs. Questioned Costs: None noted. Context: See condition above for the context of the procurement finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommended the City update its purchasing policies and related procedures and to follow the new policies and procedures to be in compliance with Uniform Guidance related to procurement, suspension and debarment and improve its documentation on RFQ evaluation and suspension and debarment check. Views of Responsible Officials: The City of Commerce will ensure, before contracting, that none of its vendors are suspended, debarred, ineligible, or voluntarily excluded from participating in federally assisted transactions or procurements. To accomplish this, the City of Commerce will verify that the vendors are not excluded or disqualified by checking SAM exclusions (at SAM.gov), collecting a certification, or adding a clause or condition to the covered transaction. As a best practice, the City of Commerce will print the screen with the search results to include in the award or procurement file or to have a checklist noting when the SAM.gov was reviewed. If the City of Commerce becomes aware after the vendor award that an excluded party is participating in a covered transaction, the City shall promptly inform the FTA regional office in writing of this information.
Finding 2023-005
Identification of the Federal Program: Assistance Listing Number: 20.507 Assistance Listing Title: Federal Transit Cluster Federal Agency: U.S. Department of Transportation Federal Award Identification Number: 1650-2020-2; CA-2021-115-00; CA-2022-135-00; CA-2023-034-00; CA-2023-167-0 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Prior to entering into subawards and contracts with award funds, recipients must ensure that contractors and subcontractors are not suspended from participating in federally funded projects. Verification is typically done by reviewing the System for Award Management (“SAM”) database and including certifications in contacts. Condition: During the audit over suspension and debarment, we noted that there was no documentation on whether the vendors were checked against the SAM database or obtained required certifications before contract awards. Cause: Also, there is no formal policies or procedures on the verification of the suspension and debarment status of vendors before entering into a contract. There was no support for 4 out of 4 Federal Transit Cluster vendors selected for testing to show suspension and debarment check was performed prior to contracting. Effect or Potential Effect: Without verifying whether vendors are suspended or debarred from working on federally-funded projects prior to the contract being awarded, the City could be contracting with vendors that are prohibited from working on federally funded projects and incurring potentially disallowed costs. Questioned Costs: None noted. Context: See condition above for the context of the procurement finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommended the City update its purchasing policies and related procedures and to follow the new policies and procedures to be in compliance with Uniform Guidance related to procurement, suspension and debarment and improve its documentation on RFQ evaluation and suspension and debarment check. Views of Responsible Officials: The City of Commerce will ensure, before contracting, that none of its vendors are suspended, debarred, ineligible, or voluntarily excluded from participating in federally assisted transactions or procurements. To accomplish this, the City of Commerce will verify that the vendors are not excluded or disqualified by checking SAM exclusions (at SAM.gov), collecting a certification, or adding a clause or condition to the covered transaction. As a best practice, the City of Commerce will print the screen with the search results to include in the award or procurement file or to have a checklist noting when the SAM.gov was reviewed. If the City of Commerce becomes aware after the vendor award that an excluded party is participating in a covered transaction, the City shall promptly inform the FTA regional office in writing of this information.
Finding 2023-005
Identification of the Federal Program: Assistance Listing Number: 20.507 Assistance Listing Title: Federal Transit Cluster Federal Agency: U.S. Department of Transportation Federal Award Identification Number: 1650-2020-2; CA-2021-115-00; CA-2022-135-00; CA-2023-034-00; CA-2023-167-0 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Prior to entering into subawards and contracts with award funds, recipients must ensure that contractors and subcontractors are not suspended from participating in federally funded projects. Verification is typically done by reviewing the System for Award Management (“SAM”) database and including certifications in contacts. Condition: During the audit over suspension and debarment, we noted that there was no documentation on whether the vendors were checked against the SAM database or obtained required certifications before contract awards. Cause: Also, there is no formal policies or procedures on the verification of the suspension and debarment status of vendors before entering into a contract. There was no support for 4 out of 4 Federal Transit Cluster vendors selected for testing to show suspension and debarment check was performed prior to contracting. Effect or Potential Effect: Without verifying whether vendors are suspended or debarred from working on federally-funded projects prior to the contract being awarded, the City could be contracting with vendors that are prohibited from working on federally funded projects and incurring potentially disallowed costs. Questioned Costs: None noted. Context: See condition above for the context of the procurement finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommended the City update its purchasing policies and related procedures and to follow the new policies and procedures to be in compliance with Uniform Guidance related to procurement, suspension and debarment and improve its documentation on RFQ evaluation and suspension and debarment check. Views of Responsible Officials: The City of Commerce will ensure, before contracting, that none of its vendors are suspended, debarred, ineligible, or voluntarily excluded from participating in federally assisted transactions or procurements. To accomplish this, the City of Commerce will verify that the vendors are not excluded or disqualified by checking SAM exclusions (at SAM.gov), collecting a certification, or adding a clause or condition to the covered transaction. As a best practice, the City of Commerce will print the screen with the search results to include in the award or procurement file or to have a checklist noting when the SAM.gov was reviewed. If the City of Commerce becomes aware after the vendor award that an excluded party is participating in a covered transaction, the City shall promptly inform the FTA regional office in writing of this information.
Finding 2023-005
Identification of the Federal Program: Assistance Listing Number: 20.507 Assistance Listing Title: Federal Transit Cluster Federal Agency: U.S. Department of Transportation Federal Award Identification Number: 1650-2020-2; CA-2021-115-00; CA-2022-135-00; CA-2023-034-00; CA-2023-167-0 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Prior to entering into subawards and contracts with award funds, recipients must ensure that contractors and subcontractors are not suspended from participating in federally funded projects. Verification is typically done by reviewing the System for Award Management (“SAM”) database and including certifications in contacts. Condition: During the audit over suspension and debarment, we noted that there was no documentation on whether the vendors were checked against the SAM database or obtained required certifications before contract awards. Cause: Also, there is no formal policies or procedures on the verification of the suspension and debarment status of vendors before entering into a contract. There was no support for 4 out of 4 Federal Transit Cluster vendors selected for testing to show suspension and debarment check was performed prior to contracting. Effect or Potential Effect: Without verifying whether vendors are suspended or debarred from working on federally-funded projects prior to the contract being awarded, the City could be contracting with vendors that are prohibited from working on federally funded projects and incurring potentially disallowed costs. Questioned Costs: None noted. Context: See condition above for the context of the procurement finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommended the City update its purchasing policies and related procedures and to follow the new policies and procedures to be in compliance with Uniform Guidance related to procurement, suspension and debarment and improve its documentation on RFQ evaluation and suspension and debarment check. Views of Responsible Officials: The City of Commerce will ensure, before contracting, that none of its vendors are suspended, debarred, ineligible, or voluntarily excluded from participating in federally assisted transactions or procurements. To accomplish this, the City of Commerce will verify that the vendors are not excluded or disqualified by checking SAM exclusions (at SAM.gov), collecting a certification, or adding a clause or condition to the covered transaction. As a best practice, the City of Commerce will print the screen with the search results to include in the award or procurement file or to have a checklist noting when the SAM.gov was reviewed. If the City of Commerce becomes aware after the vendor award that an excluded party is participating in a covered transaction, the City shall promptly inform the FTA regional office in writing of this information.
Finding 2023-005
Identification of the Federal Program: Assistance Listing Number: 20.507 Assistance Listing Title: Federal Transit Cluster Federal Agency: U.S. Department of Transportation Federal Award Identification Number: 1650-2020-2; CA-2021-115-00; CA-2022-135-00; CA-2023-034-00; CA-2023-167-0 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Prior to entering into subawards and contracts with award funds, recipients must ensure that contractors and subcontractors are not suspended from participating in federally funded projects. Verification is typically done by reviewing the System for Award Management (“SAM”) database and including certifications in contacts. Condition: During the audit over suspension and debarment, we noted that there was no documentation on whether the vendors were checked against the SAM database or obtained required certifications before contract awards. Cause: Also, there is no formal policies or procedures on the verification of the suspension and debarment status of vendors before entering into a contract. There was no support for 4 out of 4 Federal Transit Cluster vendors selected for testing to show suspension and debarment check was performed prior to contracting. Effect or Potential Effect: Without verifying whether vendors are suspended or debarred from working on federally-funded projects prior to the contract being awarded, the City could be contracting with vendors that are prohibited from working on federally funded projects and incurring potentially disallowed costs. Questioned Costs: None noted. Context: See condition above for the context of the procurement finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommended the City update its purchasing policies and related procedures and to follow the new policies and procedures to be in compliance with Uniform Guidance related to procurement, suspension and debarment and improve its documentation on RFQ evaluation and suspension and debarment check. Views of Responsible Officials: The City of Commerce will ensure, before contracting, that none of its vendors are suspended, debarred, ineligible, or voluntarily excluded from participating in federally assisted transactions or procurements. To accomplish this, the City of Commerce will verify that the vendors are not excluded or disqualified by checking SAM exclusions (at SAM.gov), collecting a certification, or adding a clause or condition to the covered transaction. As a best practice, the City of Commerce will print the screen with the search results to include in the award or procurement file or to have a checklist noting when the SAM.gov was reviewed. If the City of Commerce becomes aware after the vendor award that an excluded party is participating in a covered transaction, the City shall promptly inform the FTA regional office in writing of this information.
Finding 2023-005
Identification of the Federal Program: Assistance Listing Number: 20.507 Assistance Listing Title: Federal Transit Cluster Federal Agency: U.S. Department of Transportation Federal Award Identification Number: 1650-2020-2; CA-2021-115-00; CA-2022-135-00; CA-2023-034-00; CA-2023-167-0 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Prior to entering into subawards and contracts with award funds, recipients must ensure that contractors and subcontractors are not suspended from participating in federally funded projects. Verification is typically done by reviewing the System for Award Management (“SAM”) database and including certifications in contacts. Condition: During the audit over suspension and debarment, we noted that there was no documentation on whether the vendors were checked against the SAM database or obtained required certifications before contract awards. Cause: Also, there is no formal policies or procedures on the verification of the suspension and debarment status of vendors before entering into a contract. There was no support for 4 out of 4 Federal Transit Cluster vendors selected for testing to show suspension and debarment check was performed prior to contracting. Effect or Potential Effect: Without verifying whether vendors are suspended or debarred from working on federally-funded projects prior to the contract being awarded, the City could be contracting with vendors that are prohibited from working on federally funded projects and incurring potentially disallowed costs. Questioned Costs: None noted. Context: See condition above for the context of the procurement finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommended the City update its purchasing policies and related procedures and to follow the new policies and procedures to be in compliance with Uniform Guidance related to procurement, suspension and debarment and improve its documentation on RFQ evaluation and suspension and debarment check. Views of Responsible Officials: The City of Commerce will ensure, before contracting, that none of its vendors are suspended, debarred, ineligible, or voluntarily excluded from participating in federally assisted transactions or procurements. To accomplish this, the City of Commerce will verify that the vendors are not excluded or disqualified by checking SAM exclusions (at SAM.gov), collecting a certification, or adding a clause or condition to the covered transaction. As a best practice, the City of Commerce will print the screen with the search results to include in the award or procurement file or to have a checklist noting when the SAM.gov was reviewed. If the City of Commerce becomes aware after the vendor award that an excluded party is participating in a covered transaction, the City shall promptly inform the FTA regional office in writing of this information.
Finding 2023-005
Identification of the Federal Program: Assistance Listing Number: 20.507 Assistance Listing Title: Federal Transit Cluster Federal Agency: U.S. Department of Transportation Federal Award Identification Number: 1650-2020-2; CA-2021-115-00; CA-2022-135-00; CA-2023-034-00; CA-2023-167-0 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Prior to entering into subawards and contracts with award funds, recipients must ensure that contractors and subcontractors are not suspended from participating in federally funded projects. Verification is typically done by reviewing the System for Award Management (“SAM”) database and including certifications in contacts. Condition: During the audit over suspension and debarment, we noted that there was no documentation on whether the vendors were checked against the SAM database or obtained required certifications before contract awards. Cause: Also, there is no formal policies or procedures on the verification of the suspension and debarment status of vendors before entering into a contract. There was no support for 4 out of 4 Federal Transit Cluster vendors selected for testing to show suspension and debarment check was performed prior to contracting. Effect or Potential Effect: Without verifying whether vendors are suspended or debarred from working on federally-funded projects prior to the contract being awarded, the City could be contracting with vendors that are prohibited from working on federally funded projects and incurring potentially disallowed costs. Questioned Costs: None noted. Context: See condition above for the context of the procurement finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommended the City update its purchasing policies and related procedures and to follow the new policies and procedures to be in compliance with Uniform Guidance related to procurement, suspension and debarment and improve its documentation on RFQ evaluation and suspension and debarment check. Views of Responsible Officials: The City of Commerce will ensure, before contracting, that none of its vendors are suspended, debarred, ineligible, or voluntarily excluded from participating in federally assisted transactions or procurements. To accomplish this, the City of Commerce will verify that the vendors are not excluded or disqualified by checking SAM exclusions (at SAM.gov), collecting a certification, or adding a clause or condition to the covered transaction. As a best practice, the City of Commerce will print the screen with the search results to include in the award or procurement file or to have a checklist noting when the SAM.gov was reviewed. If the City of Commerce becomes aware after the vendor award that an excluded party is participating in a covered transaction, the City shall promptly inform the FTA regional office in writing of this information.
Finding 2023-005
Identification of the Federal Program: Assistance Listing Number: 20.507 Assistance Listing Title: Federal Transit Cluster Federal Agency: U.S. Department of Transportation Federal Award Identification Number: 1650-2020-2; CA-2021-115-00; CA-2022-135-00; CA-2023-034-00; CA-2023-167-0 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Prior to entering into subawards and contracts with award funds, recipients must ensure that contractors and subcontractors are not suspended from participating in federally funded projects. Verification is typically done by reviewing the System for Award Management (“SAM”) database and including certifications in contacts. Condition: During the audit over suspension and debarment, we noted that there was no documentation on whether the vendors were checked against the SAM database or obtained required certifications before contract awards. Cause: Also, there is no formal policies or procedures on the verification of the suspension and debarment status of vendors before entering into a contract. There was no support for 4 out of 4 Federal Transit Cluster vendors selected for testing to show suspension and debarment check was performed prior to contracting. Effect or Potential Effect: Without verifying whether vendors are suspended or debarred from working on federally-funded projects prior to the contract being awarded, the City could be contracting with vendors that are prohibited from working on federally funded projects and incurring potentially disallowed costs. Questioned Costs: None noted. Context: See condition above for the context of the procurement finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommended the City update its purchasing policies and related procedures and to follow the new policies and procedures to be in compliance with Uniform Guidance related to procurement, suspension and debarment and improve its documentation on RFQ evaluation and suspension and debarment check. Views of Responsible Officials: The City of Commerce will ensure, before contracting, that none of its vendors are suspended, debarred, ineligible, or voluntarily excluded from participating in federally assisted transactions or procurements. To accomplish this, the City of Commerce will verify that the vendors are not excluded or disqualified by checking SAM exclusions (at SAM.gov), collecting a certification, or adding a clause or condition to the covered transaction. As a best practice, the City of Commerce will print the screen with the search results to include in the award or procurement file or to have a checklist noting when the SAM.gov was reviewed. If the City of Commerce becomes aware after the vendor award that an excluded party is participating in a covered transaction, the City shall promptly inform the FTA regional office in writing of this information.
Finding 2023-005
Identification of the Federal Program: Assistance Listing Number: 20.507 Assistance Listing Title: Federal Transit Cluster Federal Agency: U.S. Department of Transportation Federal Award Identification Number: 1650-2020-2; CA-2021-115-00; CA-2022-135-00; CA-2023-034-00; CA-2023-167-0 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Prior to entering into subawards and contracts with award funds, recipients must ensure that contractors and subcontractors are not suspended from participating in federally funded projects. Verification is typically done by reviewing the System for Award Management (“SAM”) database and including certifications in contacts. Condition: During the audit over suspension and debarment, we noted that there was no documentation on whether the vendors were checked against the SAM database or obtained required certifications before contract awards. Cause: Also, there is no formal policies or procedures on the verification of the suspension and debarment status of vendors before entering into a contract. There was no support for 4 out of 4 Federal Transit Cluster vendors selected for testing to show suspension and debarment check was performed prior to contracting. Effect or Potential Effect: Without verifying whether vendors are suspended or debarred from working on federally-funded projects prior to the contract being awarded, the City could be contracting with vendors that are prohibited from working on federally funded projects and incurring potentially disallowed costs. Questioned Costs: None noted. Context: See condition above for the context of the procurement finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommended the City update its purchasing policies and related procedures and to follow the new policies and procedures to be in compliance with Uniform Guidance related to procurement, suspension and debarment and improve its documentation on RFQ evaluation and suspension and debarment check. Views of Responsible Officials: The City of Commerce will ensure, before contracting, that none of its vendors are suspended, debarred, ineligible, or voluntarily excluded from participating in federally assisted transactions or procurements. To accomplish this, the City of Commerce will verify that the vendors are not excluded or disqualified by checking SAM exclusions (at SAM.gov), collecting a certification, or adding a clause or condition to the covered transaction. As a best practice, the City of Commerce will print the screen with the search results to include in the award or procurement file or to have a checklist noting when the SAM.gov was reviewed. If the City of Commerce becomes aware after the vendor award that an excluded party is participating in a covered transaction, the City shall promptly inform the FTA regional office in writing of this information.