Audit 399806

2025-001 U.S. Department of Treasury Federal Financial Assistance Listing 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Procurement Suspension and Debarment Significant Deficiency in Internal Control Criteria: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Based on our testing of procurement and discussions with management, the City represented that suspension and debarment checks were performed prior to entering into the transaction; however, supporting documentation was not retained. The City updated its policy in March 2025 to require retention of this documentation going forward. Because documentation was not retained for the period under audit, we were unable to verify compliance during our testing. Cause: Documentation was not retained to prove the City verified the vendor was not suspended or debarred prior to entering into the transaction. Effect: We were not able to verify suspension and debarment was verified by the City prior to entering into the transaction. Questioned Costs: None reported. Context/Sampling: Nonstatistical sample was used. Repeat Finding from the Prior Year: No Recommendation: Documentation should be retained in vendor files to demonstrate that suspension and debarment checks were performed prior to entering into procurement‑related transactions. Viewed of Responsible Officials: Management agrees with the finding.