Audit 336577

2024-002 – Suspension and Debarment – Verification. Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Controls over Compliance. Federal program(s) U.S. Department of Treasury - COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027). Criteria. Under the requirements of 2 CFR Part 180 procurement contracts for goods and services that are expected to equal or exceed $25,000, the grantee must verify that the party being awarded a procurement contract is not suspended, debarred, or otherwise excluded by checking the list of excluded parties, obtaining certification from the vendor, or including a clause or condition to the covered transaction with that entity. Condition. The City did not provide evidence that two out of three vendors being awarded procurements are not suspended, debarred, or otherwise excluded when the City hired the vendors to provide goods or services. Cause. The City does not have the proper internal controls in place to ensure that evidence of verification of procured transaction is performed in accordance with the requirements of the Uniform Guidance. Effect. The failure to monitor suspension and debarment could cause funds to be disbursed to contractors or vendors who are not eligible to have goods or services purchased with federal monies. Questioned Costs. No costs have been questioned as a result of this finding. Upon review of the excluded parties listing subsequent to year end, it was determined that none of the parties that were awarded procurements were excluded parties. Recommendation. We recommend that the City review its written policies and procedures over federal awards and enforce to ensure that the appropriate suspension and debarment evidence of verifications are retained for all vendors providing goods or services in excess of $25,000. View of Responsible Officials. Management concurs with the finding. The City has recently hired a Finance Specialist who will be responsible for federal award compliance, including suspension and debarment verifications. This person will be tasked with retaining documentation for all vendors awarded federal funding in excess of $25,000. Responsible Official. Marti Praschan, Chief Financial Officer. Estimated Completion Date. June 30, 2025.

2024-002 – Suspension and Debarment – Verification. Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Controls over Compliance. Federal program(s) U.S. Department of Treasury - COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027). Criteria. Under the requirements of 2 CFR Part 180 procurement contracts for goods and services that are expected to equal or exceed $25,000, the grantee must verify that the party being awarded a procurement contract is not suspended, debarred, or otherwise excluded by checking the list of excluded parties, obtaining certification from the vendor, or including a clause or condition to the covered transaction with that entity. Condition. The City did not provide evidence that two out of three vendors being awarded procurements are not suspended, debarred, or otherwise excluded when the City hired the vendors to provide goods or services. Cause. The City does not have the proper internal controls in place to ensure that evidence of verification of procured transaction is performed in accordance with the requirements of the Uniform Guidance. Effect. The failure to monitor suspension and debarment could cause funds to be disbursed to contractors or vendors who are not eligible to have goods or services purchased with federal monies. Questioned Costs. No costs have been questioned as a result of this finding. Upon review of the excluded parties listing subsequent to year end, it was determined that none of the parties that were awarded procurements were excluded parties. Recommendation. We recommend that the City review its written policies and procedures over federal awards and enforce to ensure that the appropriate suspension and debarment evidence of verifications are retained for all vendors providing goods or services in excess of $25,000. View of Responsible Officials. Management concurs with the finding. The City has recently hired a Finance Specialist who will be responsible for federal award compliance, including suspension and debarment verifications. This person will be tasked with retaining documentation for all vendors awarded federal funding in excess of $25,000. Responsible Official. Marti Praschan, Chief Financial Officer. Estimated Completion Date. June 30, 2025.