Audit 408036

Federal Agency: US Department of Transportation Highway Planning and Construction (Federal-Aid Highway Program) Federal Assistance Listing Number: 20.205 Federal Award Year: 2025 Criteria or Specific Requirement - Suspension and debarment (2 CFR 180) Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended, debarred, or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Condition - The City's policies and procedures did not include requiements related to suspension and debarment. Additionally, the City did not perform procedures to ensure vendors used in covered transactions were not suspended, debarred, or otherwise excluded. Cause - The City did not have adequate controls and procedures in place relating to suspension and debarment requirements under the Uniform Guidance. Effect or Potential Effect - The Corporation may enter into covered transactions with vendors who have become suspended, debarred or otherwise excluded. Questioned Costs - None Context - We selected a sample of one vendor out of a population of one vendor for testing. The City was unable to provide evidence the covered transaction was not with a vendor suspended, debarred, or otherwise excluded. As a result, suspension and debarment activities were not completed in accordance with federal regulations nor was supporting documentation retained to demonstrate compliance. Identification as a Repeat Finding - No Recommendation - The City should incorporate internal controls over compliance with the suspension and debarment compliance requirement including monitoring vendors against the exclusions list. Views of Responsible Officials and Planned Corrective Actions - Management concurs with the finding and is updating their policies and procedures to be in compliance with the requirements. The estimated completion date is December 2026