Audit 413769

2025 – 001 Federal Transit Cluster – Assistance Listing 20.507 – Suspension and Debarment Questioned Costs: None identified. Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR Section 200.214 requires non-federal entities to follow suspension and debarment regulations outlined in 2 CFR part 180. When a nonfederal entity enters into a covered transaction with an entity at a lower tier, the nonfederal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: Documentation was not available to indicate the City verified vendors suspension and debarment before awarding and/or extending the contract during the fiscal year. The City’s internal controls did not ensure that the date the search was performed was maintained to ensure that the City performed the search prior to procurement. Context: See above condition. Cause: The City did not have a procedure in place to require documentation be maintained that the search for suspension and debarment associated with procurement transactions in excess of the $25,000 threshold had been performed prior to procurement. Effect: Certain vendors could be used that are suspended or debarred by the federal government resulting in noncompliance. Recommendation: We recommend that the City review its policies over suspension and debarment review to ensure they are maintaining compliance and controls over verifying or contracting with vendors that are allowable. Views of Responsible Officials: There is no disagreement with the audit finding.