Finding Text
2024-002 U.S. Department of Treasury
Passed through State of Nevada’s Governor’s Finance Office
COVID-19, Coronavirus State and Local Fiscal Recover Fund, 21.027
Procurement, Suspension and Debarment
Significant Deficiency in Internal Control over Compliance and Noncompliance
Grant Award Number: Affects all grant awards under assistance listing number 21.027 on the Schedule of Expenditures of Federal Awards.
Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires contracts greater than $25,000 to contain suspension and debarment provisions.
Condition: During our audit testing of procurement and suspension and debarment over for the year ended June 30, 2024, we noted one contract did not contain a suspension and debarment clause as required for contracts greater than $25,000 per Federal Regulation - Appendix II to 2 CFR Part 200. We did note that the City checked sam.gov to ensure contractor was not suspended and debarred.
Cause: The City of Wells did not have adequate controls to ensure that the required provisions over suspension and debarment were included in the contract.
Effect: A contract may be awarded to a contractor that is suspended and debarred.
Questioned Costs: None reported.
Context/Sampling: A nonstatistical sample of three procurement transactions of three were selected for testing, one contract out of the three selected was missing the required provisions.
Repeat Finding from Prior Year: No.
Recommendation: We recommend the City of Wells enhance controls to include required contract provisions.
Views of Responsible Officials: Management agrees with the finding.