Finding Text
2024-002 Program: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds
Financial Assistance Listing Number: 21.027
Federal Agency: U.S. Department of Treasury
Award Year: 2021
Grant Award Number: N/A
Compliance Requirement: Suspension and Debarment
Type of Finding: Significant Deficiency in Internal Control Over Compliance
Criteria:
2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements
for Federal Award requires compliance with the provisions of suspension and debarment. The
City should have internal controls designed to ensure compliance with those provisions.
Condition:
The City was not able to provide supporting documentation indicating that the City had verified
that vendors were not suspended or debarred prior to entering into the transaction.
Cause:
The City did not maintain supporting documentation indicating that the verification of
suspension and debarment was performed prior to entering into a contract.
Questioned Costs:
None
Effect:
For three (3) of four (4) vendors tested, we were not able to verify that the City followed their
internal controls to ensure the vendor was not suspended or debarred prior to entering the
transaction. It was noted that the City had performed the suspension and debarment check
after the contracts were entered into.
Context:
A nonstatistical sample of four (4) out of nine (9) vendor contracts were tested. Documentation
to support that the City performed the verification of suspension or debarment prior to entering
into the contract could not be provided.
Repeat Finding from Prior Year(s):
Yes.
Recommendation:
We recommend the City implement procedures to ensure that verification documentation for
suspension and debarment is maintained prior to the contract award to support the City’s
internal control over compliance.
Views of Responsible Officials:
See separate corrective action plan.