Finding 1057761 (2023-001)

Finding No. 2023-001 Significant Deficiency: Procurement and Suspension and Debarment - Compliance and Control Finding ALN 21.027 - Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number: OMB 1505-0271 Year: 2021 Federal Agency: US Department of the Treasury Pass-Through Entity: Not Applicable Criteria Or Specific Requirement: The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: Audit procedures revealed that one contract tested did not include a suspension and debarment clause representing that the vendor is not suspended or debarred, or that the vendor was evaluated for suspension or debarment prior to allocating federal funds to the contract. Cause: The contract was re-allocated from using City funding to using Coronavirus State and Local Fiscal Recovery Funds, and an addendum was not subsequently added to the contract. Effect: Suspension and Debarment provisions were not met for one of three contracts tested. Questioned Costs: Not applicable. Context: Out of three contracts tested, one contract tested did not include a suspension and debarment clause representing that the vendor is not suspended or debarred. Identification As A Repeat Finding: This is a first-time finding.