Finding 1056043 (2023-002)

2023-002 - Suspension and Debarment Federal Agency: U.S. Department of Treasury Federal Program/Cluster Title: COVID 19 - Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: March 3, 2021, through December 31, 2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matter Condition: Vendor contracted by the City was not checked for suspended or debarred status before engaging. Criteria or Specific Requirement: Vendors must be checked for suspension or debarment before engaging in contract. Context: We noted that 1 of 6 vendors tested were not checked for suspension and debarment before engaging in contract. Effect: The City did not comply with the compliance requirements for suspension and debarment set forth in the Uniform Guidance. Cause: Management informed us staff oversight lead to vendor not being properly checked. Recommendation: To ensure compliance, we recommend strengthening of internal control by training multiple staff how to complete vendor checks required by the Uniform Guidance. Views of Responsible Officials: The vendor status was not properly checked due to staff oversight and unfamiliarity with compliance requirements. The City has educated staff entering contracts that will use grant funding on the importance of checking for suspended or debarred status before engaging. Training of staff on procedures to check suspended or debarred status will also be implemented.