Audit 411372

2025-006 Suspension and debarment (Significant Deficiency) US Treasury Federal award Y5123, MN036 (Passed through Florida Department of Environmental Protection) ALN 21.027 Coronavirus State and Local Recovery Funds Funding Year 2021 Condition: Review of checking for suspension and debarment was not done prior to contracting with the vendor. 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. Cause: The City did not complete a review of their vendors to ensure that the vendors were not suspended and debarred before the City had contracted with the vendor as there was no process in place to check a vendor’s status. Potential Effect of Condition: Good or services could be contracted with a suspended or debarred vendor, creating questioned costs. Questioned Costs: None. The finding relates only to internal control. Perspective: The City does not have controls designed to routinely verify vendors for covered transactions are not suspended or debarred. Recommendation: The City should perform SAM checks for all vendors or contractors prior to entering into covered transactions and retain documentation of these processes. Management Response: Management concurs with the finding. As part of the federal grant award process, City Management will ensure SAM checks are performed prior to contracting with vendors.

2025-007 Controls over reporting (Significant Deficiency) US Treasury Federal award Y5123, MN036 (Passed through Florida Department of Environmental Protection) ALN 21.027 Coronavirus State and Local Recovery Funds Funding Year 2021 Condition: The City did not submit required reports, as defined by the grant agreements and the compliance supplement, by the established due dates. Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. 2 CFR Part 200 and the terms and conditions of the federal award require recipients to submit complete and accurate reports by the deadlines established by the federal awarding agency or pass-through entity. Cause: The City did not maintain adequate internal controls to ensure required reports were prepared, reviewed, and submitted in accordance with established deadlines. Potential Effect of Condition: Failure to submit reports timely may impede the awarding agency's ability to monitor program performance and compliance with federal requirements. Additionally, untimely reporting increases the risk of noncompliance with federal award requirements and could result in increased oversight or other actions by the awarding agency. Questioned Costs: None. The finding relates only to reporting, which does not result in questioned costs. Perspective: All reports tested were submitted late; however, the reports were accurate and complete. The sample was not statistically valid. Recommendation: The City should strengthen its internal controls over federal reporting by establishing formal procedures to monitor reporting deadlines, assigning responsibility for report preparation and review, maintaining a reporting calendar, and performing periodic supervisory reviews to ensure all required reports are submitted accurately and timely. Management Response: Management concurs with the recommendation. The Management Analyst will ensure accurate and timely grant reporting.