Finding Text
Assistance Listing Number, Federal Agency, and Program Name - ALN
21.027, Department of the Treasury, COVID-19 Coronavirus State and Local
Fiscal Recovery Funds
Federal Award Identification Number and Year - SLFRP 2024-2001
Pass-through Entity - Not applicable
Finding Type - Material weakness and material noncompliance with laws
and regulations
Repeat Finding - No
Criteria - Per 2 CFR 200.214, nonfederal entities are subject to the nonprocurement
debarment and suspension regulations implementing Executive
Orders 12549 and 12689, as well as 2 CFR part 180. The regulations in 2
CFR part 180.300 restrict making federal awards, subawards, and contracts
with certain parties that are debarred, suspended, or otherwise excluded
from receiving or participating in federal awards.
Condition - The City could not provide evidence that it complied with the
above regulations.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - Recipients of federal awards must have procedures in place to
verify that a contractor with which they plan to enter into a covered
transaction is not debarred, suspended, or otherwise excluded.
Cause and Effect - The City did not have a procedure in place to review
contractors and entered into covered agreements without knowing whether
the contractors were debarred, suspended, or otherwise excluded.
Recommendation - We recommend that an additional internal process be
put in place to ensure all vendors utilized with federal funds are not
suspended or debarred.
Views of Responsible Officials and Corrective Action Plan - The City will
ensure that all future contracts awarded under this program are in
compliance and will have contractors sign to verify that they are in
compliance.