Core Issue: The Town lacks adequate internal controls to check if contractors are debarred, which is necessary for using federal funds.
Impacted Requirements: Compliance with CSLFRF mandates that federal funds should not be used for debarred contractors.
Recommended Follow-Up: Revise procurement policies to include checks for suspension and debarment of contractors when using federal funds.
Finding Text
Finding 2022-009 Procurement, Suspension and Debarment
21.027 – Coronavirus State and Local Fiscal Recovery Funds (“CSLFRF”)
Type of Finding: Significant Deficiency
Condition: The Town did not have sufficient internal controls over debarment.
Criteria: CSLFRF recipients are required to ensure federal funds are not used to pay contractors that are debarred.
Cause: The Town did not have policies in place to review contractors for suspension and debarment.
Effect: Debarment was not verified.
Questioned Costs: None identified.
Perspective: None of the transactions tested were with contractors that were suspended or debarred.
Repeat Finding: Not a repeat finding.
Recommendation: RBT recommends that the Town review its internal controls process for procurement and revise the procurement policy to include suspension and debarment procedures when spending federal funds.
Auditee’s Response: The Town agrees with this finding. See corrective action plan.