Finding Text
2024-001 COVID-19 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027
Federal Award Identification Number: Not Available.
Award Period: March 3, 2021 through December 31, 2024
Compliance Requirement: Suspension and Debarment
Criteria or Specific Requirement: The United States Code of Federal Regulations (CFR) Title 2 Part 200.214 states that nonfederal entities are subject to the nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. These regulations restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities.
Condition and Context: For one vendor in our audit sample of eight, documentation was not provided to support that the City verified the vendor was not debarred or suspended from participation in Federal assistance programs or activities for the fiscal year ended June 30, 2024.
Questioned Costs: None. The vendor was not suspended or debarred.
Cause: Procedures were not adhered to for the documentation of the verification that all vendors were not suspended or debarred from participation in Federal assistance programs or activities.
Effect: While this did not occur in the instances identified in this finding, lack of verification of vendors’ debarment or suspension status could cause federal grant funds to be expended with vendors that are excluded from participation in Federal assistance programs or activities.
Repeat Finding: No.
Recommendation: We recommend procedures be strengthened to document the verification that all vendors are not suspended or debarred from participation in Federal assistance programs or activities prior to entering into a transaction.
Views of Responsible Officials: Management agrees with the finding.