Finding 1075765 (2023-002)

Finding 2023-002: Significant Deficiency - Procurement and Suspension and Debarment Federal Program: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass Through Entity: N/A Criteria: The City should have procedures for verifying that an entity with which it plans to enter into a covered transaction is not suspended, debarred or otherwise excluded. Condition/Context: During our testing of this program, we noted that the City does not have a control or process to review and document that vendors are not suspended or debarred. Cause: The City’s purchasing policy does not address suspension or debarment. Questioned Costs: Unknown Effect: The City could transact with vendors who are suspended or debarred. Recommendation: We recommend that the City update its purchase policy to cover review of vendors for suspension and debarment prior to contracting with them. City Response and Corrective Action Plan: The City immediately took corrective action and updated its processes to ensure new vendors are reviewed for suspension and debarment. The updated process was effective as of May 2024. All current vendors have also since been reviewed.