Finding 1075718 (2023-003)

2023-03 Suspension or Debarment Assistance Listing Number: 21.027 Name of Program or Cluster: Coronavirus State and Local Fiscal Recovery Funds Type of Finding/Compliance Requirement: Significant Deficiency in Internal Control over Debarment Condition: The Town did not have sufficient internal controls over federal suspension or debarment verification. Criteria: Per 2 CFR Part 180, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Cause: The Town has not implemented controls to ensure that parties awarded contracts or subawards under covered transactions are not suspended or debarred. Effect: Although none of the transactions tested involved parties that were suspended or debarred, failure to check for suspension or debarment status puts the Town at risk of noncompliance. Recommendation: RBT recommends that the Town review its internal controls process to ensure that suspension or debarment status is verified when spending federal funds. Management’s Response: See corrective action plan.