Finding 1054712 (2023-002)

Finding: 2023-002 Lack of Procurement Policy – Procurement, Suspension and Debarment Federal Agency: U.S. Department of Treasury Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: N/A Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: December 31, 2023 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or Specific Requirement: The City is required to have controls in place to ensure vendors are not federally suspended or debarred prior to payment. Condition: There is a lack of an official procurement, suspension and debarment policy as required by Uniform Grant Guidance. Questioned Costs: None Context: During testing, it was noted that the City does not have a Uniform Grant Guidance Procurement Policy designating controls of procurement, suspension & debarment procedures. Cause: Oversight Effect: There is potential for vendors to be paid with federal dollars without receiving proper approval or while being federally suspended. Repeat Finding: No. Recommendation: We recommend the City adopt a Procurement Policy in line with Uniform Grant Guidance. Views of Responsible Officials: There is no disagreement with the audit finding.