Audit 381736

Findings and Questioned Costs Related to Federal Awards Finding Number: 2025‐001 Repeat Finding: No Program Name/Assistance Listing Title: Clean Water State Revolving Fund Assistance Listing Number: 66.458 Federal Agency: U.S. Environmental Protection Agency Federal Award Number: 910210‐23 Pass‐Through Agency: Water Infrastructure Finance Authority of Arizona Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Procurement, Suspension and Debarment Criteria Non‐Federal entities are prohibited from contracting with or making sub awards under covered transactions to parties that are suspended or debarred. “Covered transactions” include those procurement contracts for goods and services awarded under a non‐procurement transaction that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR §180.220. Condition For one vendor reviewed, with whom the City spent more than $25,000, no documentation was retained for the verification of suspension and debarment. Cause There was no policy in place to ensure that verification of suspension and debarment was performed and documentation was retained. Effect The City was not in compliance with federal regulations and guidelines related to suspension and debarment or procurement. However, it was subsequently determined that the vendor utilized was not suspended or debarred. Context The City was unable to provide documentation verifying that one of two vendors utilized in the Clean Water State Revolving Fund program, was not suspended or debarred. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The City should update its procurement policies to ensure the internal controls over suspension and debarment are in place to ensure compliance with federal procurement requirements. Views of Responsible Officials See Corrective Action Plan.