Finding Text
Documentation of Procurement, Suspension, and Debarment
Federal Agency: U.S. Department of Treasury
Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds
Assistance Listing Number: 21.027
Pass-Through Agency: Missouri Department of Economic Development
Federal Award Identification and Pass-Through Numbers: DED35539009
Award Period: Year Ended April 30, 2024
Compliance Requirement: Suspension and Debarment
Type of Finding: Material Weakness in Internal Control over Compliance and Other Matter
Criteria or Specific Requirement: The Uniform Guidance requires that Port KC maintains supporting documentation to demonstrate the procedures performed that ensures it is not entering into agreements with vendors, paid with federal funds, that are suspended or debarred.
Condition and Context: During our testing, we were not presented with supporting documentation for 1 out of 1 transaction tested demonstrating Port KC performed the search of the suspended and debarred entities prior to paying the vendor. Based on a review of the SAM.gov website, the vendor was not suspended or debarred. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits.
Questioned Costs: None noted.
Cause: Oversight of the requirement by management.
Effect: Improper vendors could be used for services.
Repeat Finding: No.
Recommendation: We recommend Port KC implement procedures and retain documentation related to the applicable suspension and debarment requirements to ensure compliance.
Views of responsible officials: There is no disagreement with the audit finding. Procedures will be put in place to implement a policy of maintaining documentation related to suspension and debarment checks.