FINDING 2024-002 Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Suspension and Debarment Federal Agency: Department of the Treasury Federal Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Number and Year(o...
FINDING 2024-002 Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Suspension and Debarment Federal Agency: Department of the Treasury Federal Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Number and Year(or Other Identifying Numbers): FY2021 Pass-Through Entity: Direct Grant Compliance Requirement: Procurement and Suspension and Debarment Audit Findings: Material Weakness, Other Matters Condition Prior to entering into subawards and covered transactions with State and Local Fiscal Recovery Funds (SLFRF) award funds, recipients are required to verify that such contractors and subrecipients are not suspended, debarred, or otherwise excluded. "Covered transactions" include, but are not limited to, contracts for goods and services awarded under a non-procurement transaction (i.e., grant agreement) that are expected to equal or exceed $25,000. The verification is to be done by checking the Excluded Parties List System (EPLS), collecting a certification from that person, or adding a clause or condition to the covered transaction with the executives of a prospective vendor. A sample of five covered transactions, totaling $667,753, that equaled or exceeded $25,000 paid from SLFRF funds was selected for testing. For one of the transactions tested in the amount of $98,583, the City did not retain documentation showing that they verified that the vendor was not suspended or debarred from receiving federal funds prior to issuing the payment. Context The City had not designed or implemented effective policies and procedures to verify that contractors were not suspended or debarred, or otherwise excluded from participating in federal programs prior to entering into covered transactions using SLFRF funds. While a control process was in place, it did not ensure that all vendors were not suspended or debarred from receipt of federal grant funds for goods and services. Contact Person Responsible for Corrective Action: Tracy McGinnis - Controller Contact Phone Number and Email Address: 765-983-7222; tmcginnis@richmondindiana.gov Views of Responsible Officials: We concur with the finding. INDIANA STATE BOARD OF ACCOUNTS 24 Description of Corrective Action Plan: The City will include a suspension and debarment clause into our federal contracts with vendors receiving federal funds going forward. Responsible Party and Timeline for Completion: The Controller, Deputy Controller and the Director of Strategic Initiatives will collaborate on a process for the Corrective Action to be implemented in January 2026 for the next fiscal year.