Audit 364498

Finding No. 2024-001 - Significant Deficiency, Compliance and Control Federal Assistance Listing Number – 21.027 U.S. Department Of Treasury State And Local Fiscal Recovery Funds – Suspension And Debarment Criteria: According to Part 3 of the 2024 Compliance Supplement “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. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Condition: In our nonstatistical sample of 5 procurement transactions for the year ended December 31, 2024, we identified 1 procurement transaction where no suspension and debarment certification was documented prior to the execution of the contract or clause was added to the contract and for which the suspension and debarment check on SAM.gov was not included in the contract file. Context: EnterpriseKC completed the suspension and debarment checks on SAM.gov but could not provide evidence that those checks were completed in 2024 or before the date in which the contract was executed. Instead, the suspension and debarment checks were added to the contract files after our audit procedures were conducted. Effect: A failure to conduct a suspension and debarment check could result in procuring goods or services from an unallowed vendor which could result in unallowable costs. EnterpriseKC was able to show that all vendors used in 2024 were not included on the Exclusions list and were not suspended and debarred. Questioned Costs: There were no questioned costs identified. Cause: The Corrective Action Plan for prior year finding 2023-002 was only partially implemented as not all contracts were checked for suspension and debarment. Identification As A Repeat Finding: This is a repeat finding of 2023-002. Recommendation: Although EnterpriseKC partially corrected the prior year finding related to suspension and debarment verification for all new contracts, EnterpriseKC did not complete the verification for older contracts executed in prior years. We recommend that management include a suspension and debarment clause in all contracts which may get allocated to federal funding prior to allocating federal funds to the contract or perform alternative procedures to ensure the vendor is not suspended or debarred. Views Of Responsible Officials (Unaudited): EnterpriseKC has conducted the suspension and debarment checks and has included those checks in the contract files for all covered transactions and has also updated its procedures to ensure those checks are conducted and added to the contract file at or before the contract effective date.

Finding No. 2024-001 - Significant Deficiency, Compliance and Control Federal Assistance Listing Number – 21.027 U.S. Department Of Treasury State And Local Fiscal Recovery Funds – Suspension And Debarment Criteria: According to Part 3 of the 2024 Compliance Supplement “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. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Condition: In our nonstatistical sample of 5 procurement transactions for the year ended December 31, 2024, we identified 1 procurement transaction where no suspension and debarment certification was documented prior to the execution of the contract or clause was added to the contract and for which the suspension and debarment check on SAM.gov was not included in the contract file. Context: EnterpriseKC completed the suspension and debarment checks on SAM.gov but could not provide evidence that those checks were completed in 2024 or before the date in which the contract was executed. Instead, the suspension and debarment checks were added to the contract files after our audit procedures were conducted. Effect: A failure to conduct a suspension and debarment check could result in procuring goods or services from an unallowed vendor which could result in unallowable costs. EnterpriseKC was able to show that all vendors used in 2024 were not included on the Exclusions list and were not suspended and debarred. Questioned Costs: There were no questioned costs identified. Cause: The Corrective Action Plan for prior year finding 2023-002 was only partially implemented as not all contracts were checked for suspension and debarment. Identification As A Repeat Finding: This is a repeat finding of 2023-002. Recommendation: Although EnterpriseKC partially corrected the prior year finding related to suspension and debarment verification for all new contracts, EnterpriseKC did not complete the verification for older contracts executed in prior years. We recommend that management include a suspension and debarment clause in all contracts which may get allocated to federal funding prior to allocating federal funds to the contract or perform alternative procedures to ensure the vendor is not suspended or debarred. Views Of Responsible Officials (Unaudited): EnterpriseKC has conducted the suspension and debarment checks and has included those checks in the contract files for all covered transactions and has also updated its procedures to ensure those checks are conducted and added to the contract file at or before the contract effective date.