Finding 1130737 (2024-003)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-04-07
Audit: 352895
Organization: City of Satellite Beach (FL)

AI Summary

  • Core Issue: Vendors were not checked for suspension or debarment before contracts were signed, violating federal requirements.
  • Impacted Requirements: 2 CFR 200.303 mandates effective internal controls, and 2 CFR 180 prohibits contracts with suspended or debarred entities.
  • Recommended Follow-Up: Implement a consistent process to verify vendor status before contracting to avoid potential issues with questioned costs.

Finding Text

2024-003 Suspension and Debarment 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds US Department of Treasury Passed through Florida Department of Environmental Protection 2024 Funding Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. 2 CFR 180 prohibits entering into covered transactions with entities that have been suspended or debarred from Federal funding. Documentation of the check for suspension or debarment needs to be retained. Condition: Review of checking for suspension and debarment was not done prior to contracting with the vendor. Cause of condition: There is no consistent process to ensure that the vendors were not suspended and debarred, prior to procuring goods or services. Perspective (context): For 29 of the 37 invoices selected, suspension and debarment was not checked prior to paying the vendor. Potential effect of condition: Good or services could be contracted with a suspended or debarred vendor, creating questioned costs. Questioned Costs: None. Recommendation: Review of vendors suspension and debarment should be done prior to entering into a contract or obtaining good or services. Management’s response on planned corrective action: The City has worked and will continue to work diligently on this issue. The City is working to ensure that all vendors are properly reviewed for suspension and debarment on an ongoing basis.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 554289 2024-002
    Significant Deficiency
  • 554290 2024-002
    Significant Deficiency
  • 554291 2024-002
    Significant Deficiency
  • 554292 2024-002
    Significant Deficiency
  • 554293 2024-003
    Significant Deficiency
  • 554294 2024-003
    Significant Deficiency
  • 554295 2024-003
    Significant Deficiency
  • 554296 2024-003
    Significant Deficiency
  • 1130731 2024-002
    Significant Deficiency
  • 1130732 2024-002
    Significant Deficiency
  • 1130733 2024-002
    Significant Deficiency
  • 1130734 2024-002
    Significant Deficiency
  • 1130735 2024-003
    Significant Deficiency
  • 1130736 2024-003
    Significant Deficiency
  • 1130738 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $191,792
10.727 Inflation Reduction Act Urban & Community Forestry Program $83,900
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $9,921