2023-008 U.S. Department of Treasury, For the Period July 1, 2022 through June 30, 2023, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds
Criteria: The Coronavirus State and Local Fiscal Recovery Fund (SLFRF) Grant requires an annual Project and Expenditure Report be submitted within 30 days of the year ending March 31, 2023 to the Department of the Treasury. The Project and Expenditure Report should be supported by the City’s financial records and should contain an accurate record of grant funds obligated and expended by budgeted project.
Condition: We were unable to reconcile the City’s expenditures, as reported in their accounting system, with the March 31, 2023 Project and Expenditure Report. Actual expenditures for the year ending March 31, 2023 were $1,644,557 more than were reported to the Treasury Department. Cumulative expenditures were $276,606 less than were reported to the Treasury Department.
Cause: We were unable to obtain the supporting documentation used by the City in their preparation of the Project and Expenditure Report to determine why there was such a large, undetected discrepancy. Inadequate grant management resources, staff turnover in the Finance Department, and inadequate review procedures have resulted in inaccurate reporting.
Effect: Failure to complete reports accurately and maintain proper supporting documentation for amounts reported could skew the financial position of the program and related projects. As such, measurement of results and management decisions for future projects could be based on inaccurate information.
Recommendation: We recommend the City review their grant management controls to ensure that supporting documentation for grant reporting is maintained in a shared network file, available to all relevant users, and that reports and supporting documentation are reviewed and approved by a knowledgeable grant manager prior to submission to the Department of Treasury. Subsequent reallocation of expenditures that require report corrections should be made in a timely manner in the Treasury’s reporting portal.
Known Questioned Costs: None
Likely Questioned Costs: None
2023-009 U.S. Department of Treasury, For the Period July 1, 2022 through June 30, 2023, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds
Criteria: In accordance with 2 CFR 200.510 Financial Statements, grant recipients are required to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the recipient’s financial statements. The City of Biddeford prepares their SEFA on the accrual basis of accounting.
Condition: During our testing of grant expenditures, we found one expenditure totaling $140,320 that was reported in the wrong period. We also found a credit of $27,119 that was unrelated to the State and Local Fiscal Recovery Fund (SLFRF) grant and improperly reduced grant expenditures. The initial SEFA overstated expenditures by $113,201 for the SLFRF grant. The client has made adjustments to the SEFA to correct the errors.
Cause: Improper accounting cutoff procedures and improper transaction coding caused the initial SEFA to be incorrect.
Effect: The SEFA initially overstated program expenditures by $113,201.
Recommendation: We recommend regular review of Federal grant expenditure accounts by a grant manager knowledgeable of the program to ensure proper year end cutoff and proper expense and revenue coding.
Known Questioned Costs: None
Likely Questioned Costs: None
2023-010 U.S. Department of Treasury, For the Period July 1, 2022 through June 30, 2023, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds
Criteria: In accordance with 2 CFR 180 OMB Guidelines to Agencies on Government-Wide Debarment and Suspension, non-Federal entities are prohibited from contracting with parties that are suspended or debarred when a covered transaction is expected to equal or exceed $25,000 or meet certain other criteria specified in 2 CFR 180.220. The non-Federal entity must verify the contractor is not suspended or debarred by (1) checking the System for Award Management (SAM) exclusions maintained by the General Services Administration at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the contract with that entity.
Condition: During our testing of grant expenditures, we found no evidence the City verified the contractor was not suspended or debarred prior to entering into covered transactions.
Cause: The City did not have a procedure in place to ensure compliance with suspension and debarment requirements prior to contracting with a vendor.
Effect: The vendor could have been suspended or debarred from entering into a contract funded by Federal grants. Noncompliance can result in the grantor withholding Federal funds for the program.
Recommendation: We recommend management review the requirements under 2 CFR part 180 and develop procedures to add to their procurement ordinance to ensure one of the three verifications is present prior to entering into a covered transaction under a Federal grant award.
Known Questioned Costs: None
Likely Questioned Costs: None
2023-008 U.S. Department of Treasury, For the Period July 1, 2022 through June 30, 2023, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds
Criteria: The Coronavirus State and Local Fiscal Recovery Fund (SLFRF) Grant requires an annual Project and Expenditure Report be submitted within 30 days of the year ending March 31, 2023 to the Department of the Treasury. The Project and Expenditure Report should be supported by the City’s financial records and should contain an accurate record of grant funds obligated and expended by budgeted project.
Condition: We were unable to reconcile the City’s expenditures, as reported in their accounting system, with the March 31, 2023 Project and Expenditure Report. Actual expenditures for the year ending March 31, 2023 were $1,644,557 more than were reported to the Treasury Department. Cumulative expenditures were $276,606 less than were reported to the Treasury Department.
Cause: We were unable to obtain the supporting documentation used by the City in their preparation of the Project and Expenditure Report to determine why there was such a large, undetected discrepancy. Inadequate grant management resources, staff turnover in the Finance Department, and inadequate review procedures have resulted in inaccurate reporting.
Effect: Failure to complete reports accurately and maintain proper supporting documentation for amounts reported could skew the financial position of the program and related projects. As such, measurement of results and management decisions for future projects could be based on inaccurate information.
Recommendation: We recommend the City review their grant management controls to ensure that supporting documentation for grant reporting is maintained in a shared network file, available to all relevant users, and that reports and supporting documentation are reviewed and approved by a knowledgeable grant manager prior to submission to the Department of Treasury. Subsequent reallocation of expenditures that require report corrections should be made in a timely manner in the Treasury’s reporting portal.
Known Questioned Costs: None
Likely Questioned Costs: None
2023-009 U.S. Department of Treasury, For the Period July 1, 2022 through June 30, 2023, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds
Criteria: In accordance with 2 CFR 200.510 Financial Statements, grant recipients are required to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the recipient’s financial statements. The City of Biddeford prepares their SEFA on the accrual basis of accounting.
Condition: During our testing of grant expenditures, we found one expenditure totaling $140,320 that was reported in the wrong period. We also found a credit of $27,119 that was unrelated to the State and Local Fiscal Recovery Fund (SLFRF) grant and improperly reduced grant expenditures. The initial SEFA overstated expenditures by $113,201 for the SLFRF grant. The client has made adjustments to the SEFA to correct the errors.
Cause: Improper accounting cutoff procedures and improper transaction coding caused the initial SEFA to be incorrect.
Effect: The SEFA initially overstated program expenditures by $113,201.
Recommendation: We recommend regular review of Federal grant expenditure accounts by a grant manager knowledgeable of the program to ensure proper year end cutoff and proper expense and revenue coding.
Known Questioned Costs: None
Likely Questioned Costs: None
2023-010 U.S. Department of Treasury, For the Period July 1, 2022 through June 30, 2023, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds
Criteria: In accordance with 2 CFR 180 OMB Guidelines to Agencies on Government-Wide Debarment and Suspension, non-Federal entities are prohibited from contracting with parties that are suspended or debarred when a covered transaction is expected to equal or exceed $25,000 or meet certain other criteria specified in 2 CFR 180.220. The non-Federal entity must verify the contractor is not suspended or debarred by (1) checking the System for Award Management (SAM) exclusions maintained by the General Services Administration at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the contract with that entity.
Condition: During our testing of grant expenditures, we found no evidence the City verified the contractor was not suspended or debarred prior to entering into covered transactions.
Cause: The City did not have a procedure in place to ensure compliance with suspension and debarment requirements prior to contracting with a vendor.
Effect: The vendor could have been suspended or debarred from entering into a contract funded by Federal grants. Noncompliance can result in the grantor withholding Federal funds for the program.
Recommendation: We recommend management review the requirements under 2 CFR part 180 and develop procedures to add to their procurement ordinance to ensure one of the three verifications is present prior to entering into a covered transaction under a Federal grant award.
Known Questioned Costs: None
Likely Questioned Costs: None
2023-008 U.S. Department of Treasury, For the Period July 1, 2022 through June 30, 2023, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds
Criteria: The Coronavirus State and Local Fiscal Recovery Fund (SLFRF) Grant requires an annual Project and Expenditure Report be submitted within 30 days of the year ending March 31, 2023 to the Department of the Treasury. The Project and Expenditure Report should be supported by the City’s financial records and should contain an accurate record of grant funds obligated and expended by budgeted project.
Condition: We were unable to reconcile the City’s expenditures, as reported in their accounting system, with the March 31, 2023 Project and Expenditure Report. Actual expenditures for the year ending March 31, 2023 were $1,644,557 more than were reported to the Treasury Department. Cumulative expenditures were $276,606 less than were reported to the Treasury Department.
Cause: We were unable to obtain the supporting documentation used by the City in their preparation of the Project and Expenditure Report to determine why there was such a large, undetected discrepancy. Inadequate grant management resources, staff turnover in the Finance Department, and inadequate review procedures have resulted in inaccurate reporting.
Effect: Failure to complete reports accurately and maintain proper supporting documentation for amounts reported could skew the financial position of the program and related projects. As such, measurement of results and management decisions for future projects could be based on inaccurate information.
Recommendation: We recommend the City review their grant management controls to ensure that supporting documentation for grant reporting is maintained in a shared network file, available to all relevant users, and that reports and supporting documentation are reviewed and approved by a knowledgeable grant manager prior to submission to the Department of Treasury. Subsequent reallocation of expenditures that require report corrections should be made in a timely manner in the Treasury’s reporting portal.
Known Questioned Costs: None
Likely Questioned Costs: None
2023-009 U.S. Department of Treasury, For the Period July 1, 2022 through June 30, 2023, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds
Criteria: In accordance with 2 CFR 200.510 Financial Statements, grant recipients are required to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the recipient’s financial statements. The City of Biddeford prepares their SEFA on the accrual basis of accounting.
Condition: During our testing of grant expenditures, we found one expenditure totaling $140,320 that was reported in the wrong period. We also found a credit of $27,119 that was unrelated to the State and Local Fiscal Recovery Fund (SLFRF) grant and improperly reduced grant expenditures. The initial SEFA overstated expenditures by $113,201 for the SLFRF grant. The client has made adjustments to the SEFA to correct the errors.
Cause: Improper accounting cutoff procedures and improper transaction coding caused the initial SEFA to be incorrect.
Effect: The SEFA initially overstated program expenditures by $113,201.
Recommendation: We recommend regular review of Federal grant expenditure accounts by a grant manager knowledgeable of the program to ensure proper year end cutoff and proper expense and revenue coding.
Known Questioned Costs: None
Likely Questioned Costs: None
2023-010 U.S. Department of Treasury, For the Period July 1, 2022 through June 30, 2023, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds
Criteria: In accordance with 2 CFR 180 OMB Guidelines to Agencies on Government-Wide Debarment and Suspension, non-Federal entities are prohibited from contracting with parties that are suspended or debarred when a covered transaction is expected to equal or exceed $25,000 or meet certain other criteria specified in 2 CFR 180.220. The non-Federal entity must verify the contractor is not suspended or debarred by (1) checking the System for Award Management (SAM) exclusions maintained by the General Services Administration at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the contract with that entity.
Condition: During our testing of grant expenditures, we found no evidence the City verified the contractor was not suspended or debarred prior to entering into covered transactions.
Cause: The City did not have a procedure in place to ensure compliance with suspension and debarment requirements prior to contracting with a vendor.
Effect: The vendor could have been suspended or debarred from entering into a contract funded by Federal grants. Noncompliance can result in the grantor withholding Federal funds for the program.
Recommendation: We recommend management review the requirements under 2 CFR part 180 and develop procedures to add to their procurement ordinance to ensure one of the three verifications is present prior to entering into a covered transaction under a Federal grant award.
Known Questioned Costs: None
Likely Questioned Costs: None
2023-008 U.S. Department of Treasury, For the Period July 1, 2022 through June 30, 2023, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds
Criteria: The Coronavirus State and Local Fiscal Recovery Fund (SLFRF) Grant requires an annual Project and Expenditure Report be submitted within 30 days of the year ending March 31, 2023 to the Department of the Treasury. The Project and Expenditure Report should be supported by the City’s financial records and should contain an accurate record of grant funds obligated and expended by budgeted project.
Condition: We were unable to reconcile the City’s expenditures, as reported in their accounting system, with the March 31, 2023 Project and Expenditure Report. Actual expenditures for the year ending March 31, 2023 were $1,644,557 more than were reported to the Treasury Department. Cumulative expenditures were $276,606 less than were reported to the Treasury Department.
Cause: We were unable to obtain the supporting documentation used by the City in their preparation of the Project and Expenditure Report to determine why there was such a large, undetected discrepancy. Inadequate grant management resources, staff turnover in the Finance Department, and inadequate review procedures have resulted in inaccurate reporting.
Effect: Failure to complete reports accurately and maintain proper supporting documentation for amounts reported could skew the financial position of the program and related projects. As such, measurement of results and management decisions for future projects could be based on inaccurate information.
Recommendation: We recommend the City review their grant management controls to ensure that supporting documentation for grant reporting is maintained in a shared network file, available to all relevant users, and that reports and supporting documentation are reviewed and approved by a knowledgeable grant manager prior to submission to the Department of Treasury. Subsequent reallocation of expenditures that require report corrections should be made in a timely manner in the Treasury’s reporting portal.
Known Questioned Costs: None
Likely Questioned Costs: None
2023-009 U.S. Department of Treasury, For the Period July 1, 2022 through June 30, 2023, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds
Criteria: In accordance with 2 CFR 200.510 Financial Statements, grant recipients are required to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the recipient’s financial statements. The City of Biddeford prepares their SEFA on the accrual basis of accounting.
Condition: During our testing of grant expenditures, we found one expenditure totaling $140,320 that was reported in the wrong period. We also found a credit of $27,119 that was unrelated to the State and Local Fiscal Recovery Fund (SLFRF) grant and improperly reduced grant expenditures. The initial SEFA overstated expenditures by $113,201 for the SLFRF grant. The client has made adjustments to the SEFA to correct the errors.
Cause: Improper accounting cutoff procedures and improper transaction coding caused the initial SEFA to be incorrect.
Effect: The SEFA initially overstated program expenditures by $113,201.
Recommendation: We recommend regular review of Federal grant expenditure accounts by a grant manager knowledgeable of the program to ensure proper year end cutoff and proper expense and revenue coding.
Known Questioned Costs: None
Likely Questioned Costs: None
2023-010 U.S. Department of Treasury, For the Period July 1, 2022 through June 30, 2023, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds
Criteria: In accordance with 2 CFR 180 OMB Guidelines to Agencies on Government-Wide Debarment and Suspension, non-Federal entities are prohibited from contracting with parties that are suspended or debarred when a covered transaction is expected to equal or exceed $25,000 or meet certain other criteria specified in 2 CFR 180.220. The non-Federal entity must verify the contractor is not suspended or debarred by (1) checking the System for Award Management (SAM) exclusions maintained by the General Services Administration at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the contract with that entity.
Condition: During our testing of grant expenditures, we found no evidence the City verified the contractor was not suspended or debarred prior to entering into covered transactions.
Cause: The City did not have a procedure in place to ensure compliance with suspension and debarment requirements prior to contracting with a vendor.
Effect: The vendor could have been suspended or debarred from entering into a contract funded by Federal grants. Noncompliance can result in the grantor withholding Federal funds for the program.
Recommendation: We recommend management review the requirements under 2 CFR part 180 and develop procedures to add to their procurement ordinance to ensure one of the three verifications is present prior to entering into a covered transaction under a Federal grant award.
Known Questioned Costs: None
Likely Questioned Costs: None
2023-008 U.S. Department of Treasury, For the Period July 1, 2022 through June 30, 2023, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds
Criteria: The Coronavirus State and Local Fiscal Recovery Fund (SLFRF) Grant requires an annual Project and Expenditure Report be submitted within 30 days of the year ending March 31, 2023 to the Department of the Treasury. The Project and Expenditure Report should be supported by the City’s financial records and should contain an accurate record of grant funds obligated and expended by budgeted project.
Condition: We were unable to reconcile the City’s expenditures, as reported in their accounting system, with the March 31, 2023 Project and Expenditure Report. Actual expenditures for the year ending March 31, 2023 were $1,644,557 more than were reported to the Treasury Department. Cumulative expenditures were $276,606 less than were reported to the Treasury Department.
Cause: We were unable to obtain the supporting documentation used by the City in their preparation of the Project and Expenditure Report to determine why there was such a large, undetected discrepancy. Inadequate grant management resources, staff turnover in the Finance Department, and inadequate review procedures have resulted in inaccurate reporting.
Effect: Failure to complete reports accurately and maintain proper supporting documentation for amounts reported could skew the financial position of the program and related projects. As such, measurement of results and management decisions for future projects could be based on inaccurate information.
Recommendation: We recommend the City review their grant management controls to ensure that supporting documentation for grant reporting is maintained in a shared network file, available to all relevant users, and that reports and supporting documentation are reviewed and approved by a knowledgeable grant manager prior to submission to the Department of Treasury. Subsequent reallocation of expenditures that require report corrections should be made in a timely manner in the Treasury’s reporting portal.
Known Questioned Costs: None
Likely Questioned Costs: None
2023-009 U.S. Department of Treasury, For the Period July 1, 2022 through June 30, 2023, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds
Criteria: In accordance with 2 CFR 200.510 Financial Statements, grant recipients are required to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the recipient’s financial statements. The City of Biddeford prepares their SEFA on the accrual basis of accounting.
Condition: During our testing of grant expenditures, we found one expenditure totaling $140,320 that was reported in the wrong period. We also found a credit of $27,119 that was unrelated to the State and Local Fiscal Recovery Fund (SLFRF) grant and improperly reduced grant expenditures. The initial SEFA overstated expenditures by $113,201 for the SLFRF grant. The client has made adjustments to the SEFA to correct the errors.
Cause: Improper accounting cutoff procedures and improper transaction coding caused the initial SEFA to be incorrect.
Effect: The SEFA initially overstated program expenditures by $113,201.
Recommendation: We recommend regular review of Federal grant expenditure accounts by a grant manager knowledgeable of the program to ensure proper year end cutoff and proper expense and revenue coding.
Known Questioned Costs: None
Likely Questioned Costs: None
2023-010 U.S. Department of Treasury, For the Period July 1, 2022 through June 30, 2023, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds
Criteria: In accordance with 2 CFR 180 OMB Guidelines to Agencies on Government-Wide Debarment and Suspension, non-Federal entities are prohibited from contracting with parties that are suspended or debarred when a covered transaction is expected to equal or exceed $25,000 or meet certain other criteria specified in 2 CFR 180.220. The non-Federal entity must verify the contractor is not suspended or debarred by (1) checking the System for Award Management (SAM) exclusions maintained by the General Services Administration at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the contract with that entity.
Condition: During our testing of grant expenditures, we found no evidence the City verified the contractor was not suspended or debarred prior to entering into covered transactions.
Cause: The City did not have a procedure in place to ensure compliance with suspension and debarment requirements prior to contracting with a vendor.
Effect: The vendor could have been suspended or debarred from entering into a contract funded by Federal grants. Noncompliance can result in the grantor withholding Federal funds for the program.
Recommendation: We recommend management review the requirements under 2 CFR part 180 and develop procedures to add to their procurement ordinance to ensure one of the three verifications is present prior to entering into a covered transaction under a Federal grant award.
Known Questioned Costs: None
Likely Questioned Costs: None
2023-008 U.S. Department of Treasury, For the Period July 1, 2022 through June 30, 2023, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds
Criteria: The Coronavirus State and Local Fiscal Recovery Fund (SLFRF) Grant requires an annual Project and Expenditure Report be submitted within 30 days of the year ending March 31, 2023 to the Department of the Treasury. The Project and Expenditure Report should be supported by the City’s financial records and should contain an accurate record of grant funds obligated and expended by budgeted project.
Condition: We were unable to reconcile the City’s expenditures, as reported in their accounting system, with the March 31, 2023 Project and Expenditure Report. Actual expenditures for the year ending March 31, 2023 were $1,644,557 more than were reported to the Treasury Department. Cumulative expenditures were $276,606 less than were reported to the Treasury Department.
Cause: We were unable to obtain the supporting documentation used by the City in their preparation of the Project and Expenditure Report to determine why there was such a large, undetected discrepancy. Inadequate grant management resources, staff turnover in the Finance Department, and inadequate review procedures have resulted in inaccurate reporting.
Effect: Failure to complete reports accurately and maintain proper supporting documentation for amounts reported could skew the financial position of the program and related projects. As such, measurement of results and management decisions for future projects could be based on inaccurate information.
Recommendation: We recommend the City review their grant management controls to ensure that supporting documentation for grant reporting is maintained in a shared network file, available to all relevant users, and that reports and supporting documentation are reviewed and approved by a knowledgeable grant manager prior to submission to the Department of Treasury. Subsequent reallocation of expenditures that require report corrections should be made in a timely manner in the Treasury’s reporting portal.
Known Questioned Costs: None
Likely Questioned Costs: None
2023-009 U.S. Department of Treasury, For the Period July 1, 2022 through June 30, 2023, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds
Criteria: In accordance with 2 CFR 200.510 Financial Statements, grant recipients are required to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the recipient’s financial statements. The City of Biddeford prepares their SEFA on the accrual basis of accounting.
Condition: During our testing of grant expenditures, we found one expenditure totaling $140,320 that was reported in the wrong period. We also found a credit of $27,119 that was unrelated to the State and Local Fiscal Recovery Fund (SLFRF) grant and improperly reduced grant expenditures. The initial SEFA overstated expenditures by $113,201 for the SLFRF grant. The client has made adjustments to the SEFA to correct the errors.
Cause: Improper accounting cutoff procedures and improper transaction coding caused the initial SEFA to be incorrect.
Effect: The SEFA initially overstated program expenditures by $113,201.
Recommendation: We recommend regular review of Federal grant expenditure accounts by a grant manager knowledgeable of the program to ensure proper year end cutoff and proper expense and revenue coding.
Known Questioned Costs: None
Likely Questioned Costs: None
2023-010 U.S. Department of Treasury, For the Period July 1, 2022 through June 30, 2023, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds
Criteria: In accordance with 2 CFR 180 OMB Guidelines to Agencies on Government-Wide Debarment and Suspension, non-Federal entities are prohibited from contracting with parties that are suspended or debarred when a covered transaction is expected to equal or exceed $25,000 or meet certain other criteria specified in 2 CFR 180.220. The non-Federal entity must verify the contractor is not suspended or debarred by (1) checking the System for Award Management (SAM) exclusions maintained by the General Services Administration at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the contract with that entity.
Condition: During our testing of grant expenditures, we found no evidence the City verified the contractor was not suspended or debarred prior to entering into covered transactions.
Cause: The City did not have a procedure in place to ensure compliance with suspension and debarment requirements prior to contracting with a vendor.
Effect: The vendor could have been suspended or debarred from entering into a contract funded by Federal grants. Noncompliance can result in the grantor withholding Federal funds for the program.
Recommendation: We recommend management review the requirements under 2 CFR part 180 and develop procedures to add to their procurement ordinance to ensure one of the three verifications is present prior to entering into a covered transaction under a Federal grant award.
Known Questioned Costs: None
Likely Questioned Costs: None