Finding Text
Federal Program: American Rescue Plan Act (ARPA), AL 21.027 Criteria: Per CFR 536.270-4 – Contractors are not to be listed in the System for Award Management Exclusions.
Condition: During the audit, we noted that vendor non-suspension and debarment was not verified prior to execution of agreement entered with program funds. Cause: The City did not have controls in place to ensure vendor non-suspension/debarment was verified prior to execution of agreement. Identification as a Repeat Finding: This is not a repeat finding.
Effect: The City could jeopardize future grant funding due to program noncompliance. Questioned Costs: None. Context/Sampling: A nonstatistical sample of two procurement agreements out of ten agreements were selected for testing. This accounted for $2,109,696 & $290,639 of federal expenditures. Recommendation: We recommend the City implement a tracking system to remind staff of suspension and debarment requirements. Management’s Response: See corrective action plan.