Finding Text
Program title:
COVID-19 Coronavirus State and Local Fiscal Recover Funds
Assistance Listing Numbers:
21.027
Federal Award ID Number:
SLFRP0894, 23PLN17
Name of Federal Agency:
United States Department of Treasury - Award 23PLN17 Passed through the Florida Department of
Environmental Protection;
Funding: 2024
Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal
controls. Vendors should be checked for suspension and debarment prior to services being
performed.
Condition: During the audit, it was determined that 2 of the 2 vendors selected for projects were not
screened against the federal suspension and debarment list prior to award. The vendor was not
verified against the System for Award Management (SAM) or other relevant databases to ensure they
were not excluded from doing business with the government, as required by federal regulations.
Cause: The City was in the process of hiring a new procurement manager and relied on piggybacking
on county contracts when selecting vendors. Effect: The failure to check the vendor against suspension and debarment lists exposes the City to
the risk of engaging with vendors who may be ineligible to perform work under federally funded
programs. This non-compliance could lead to potential financial penalties, legal consequences, and
reputational damage, as well as the risk of working with unqualified or non-compliant vendors.
Questioned Costs: None
Perspective: One hundred percent of the population (2 vendors) was selected for testing. Both
vendors were not checked for suspension and debarment.
Recommendation: Management should implement a formalized process for checking all vendors
prior to work being started on the project.
Management’s Response: In January 2024 a Procurement Manager was hired. Procedures were added
to ensure that the City will be in compliance with the 2 CFR 200.303 in the future.