Audit 403710

2025-004 Department of the Treasury Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds for the period July 1, 2024, to June 30, 2025 Criteria: Recipients of the Coronavirus State and Local Fiscal Recovery Funds (ARPA) grant are required to follow the Uniform Guidance section § 200.214 Suspension and Debarment. Under that section, grant recipients are restricted from entering into contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in federal awards. The Uniform Guidance also requires grant recipients to develop internal controls to ensure compliance with the grant requirements. Condition: The Town had two significant contracts under the ARPA grant that would have required documentation or certification of suspension and debarment from the vendors, but no documentation was obtained. In addition, the Town did not have procedures in place to ensure compliance with suspension and debarment requirements. Cause: The Town did not document a search of Sam.gov to ensure the vendors were not suspended nor debarred. As an alternative, the Town also did not receive certification from the vendors or any other documentation regarding their suspension and debarment status. Effect: The Town runs the risk that the Town will contract with a vendor that is suspended or debarred. Known Questioned Costs: None Likely Questioned Costs: None Recommendations: The Town should have procedures in place to ensure it does not enter into a contract with a vendor that is suspended or debarred. In addition, any documentation of suspension and debarment status should be retained with the grant documentation.