Audit 388290

Federal Agency: U.S. Department of Housing & Urban Development Federal Program Name: Community Planning and Development Office of Economic Development - Congressional Grants Division Assistance Listing Number: 14.251 Federal Award Identification Number and Year: B-22-CP-IL-0326; 2022 Award Period: July 18, 2022 to August 31, 2030 Type of Finding: • Material Weakness in Internal Control over Compliance • Other Matters Criteria or specific requirement: Federal guidelines require the entity to have procedures documented to verify the vendor of a covered transaction (over $25,000) is not debarred, suspended, or otherwise excluded from participating in the transaction, prior to entering into a covered transaction. Condition: This City did not complete suspension and debarment procedures for 1 out of 2 covered transactions Questioned costs: None. Context: in the testing of 1 of 2 covered transactions, the City did not complete the required suspension and debarment procedures prior to purchase. Cause: One vendor was missed in suspension and debarment procedures. Effect: Lack of internal control procedures can lead to noncompliance with grant requirements. Repeat finding: No. Recommendation: We recommend ensuring procurement procedures are complete and in accordance with Uniform Grant Guidance for any federal purchases. These procedures should include verifying vendors or contractors are not suspended or debarred from doing business, prior to contracting with them, and maintaining documentation of this. The City should consider adding a Federal Procurement Checklist that covers the applicable Uniform Guidance requirements that should be completed when making purchases and retained with other procurement documents. Views of responsible officials: There is no disagreement with the audit finding.