Audit 397766

2025-004 Suspension and Debarment 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds US Department of Treasury Passed through Florida Department of Environmental Protection 2024 Funding Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. Documentation of the check for suspension or debarment needs to be retained. Condition: Review of checking for suspension and debarment was not done prior to contracting with the vendor. Cause of condition: The City did not consistently complete reviews for all vendors to ensure that the vendors were not suspended and debarred before projects had. Perspective (context): For 5 of the 8 vendors selected, suspension and debarment was not checked prior to paying the vendor. The sample was not statistically valid. Potential effect of condition: Good or services could be contracted with a suspended or debarred vendor, creating questioned costs. Questioned Costs: None noted. Reported finding is a deficiency in internal control. Recommendation: The City should require all vendors to provide certification of their status before a contract or purchase order is completed with the vendor and the City should obtain new certificates annually to ensure the vendors status has not changed. Management’s response on planned corrective action: Management agrees with the recommendation. The City has implemented procedures requiring all departments to obtain vendor certification of status prior to executing a contract or issuing a purchase order. Over the past year, we have worked diligently to educate departments on the importance of obtaining and maintaining proper vendor certifications to ensure compliance with applicable requirements. We will continue to reinforce this expectation and monitor compliance, including obtaining updated certifications annually to ensure vendor status has not changed.

2025-005 Lack of Report Review 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds US Department of Treasury 2021 Funding Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. Reports should be subject to independent review to verify completeness, validity and timeliness of submission. Condition: There was no documented review by the City Manager of the annual report submitted to the Us Treasury department prior to submittal. Cause of condition: The annual report to the US Treasury was not reviewed prior to submittal. Perspective (context): The one annual report was not reviewed. Potential effect of condition: Review could contain errors, could be submitted incomplete or late. Questioned Costs: None noted. Reported finding is a deficiency in internal control. Recommendation: The City should have controls in place to ensure all reports are reviewed prior to submittal. Management’s response on planned corrective action: Management agrees that reports should be reviewed prior to submission and notes that the City does have controls in place to ensure appropriate review procedures are performed. In this instance, the report was prepared and submitted by the City Manager, and due to limitations within the Federal Government’s online reporting system, there was not a built-in approval workflow available to document the review process.