Finding Text
Finding No.
2024-003 Federal Agency: U.S. Department of Environmental Protection Agency
Federal Program Name: Capitalization Grants for Drinking Water State Revolving Funds
Assistance Listing Number: 66.468
Federal Award Notification Number and Year: 4896-13 - 2024
Award Period: January 1, 2024 – December 31, 2024
Compliance Requirement Affected: Suspension and Debarment
Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters
Criteria or Specific
Requirement: 2 CFR 200.320 Methods of Procurement state that when a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction.
Condition: During our testing, we noted the Village did not have adequate internal controls designed to ensure vendors were not suspended or debarred.
Questioned Costs: None
Context: During our testing, it was noted that the Village was not reviewing vendors prior to entering into a contract with a vendor to ensure the vendor was not on the suspended or debarred vendor list maintained by the General Services Administration.
Cause: The Village does not have controls related to ensuring suspension and debarment are verified prior to entering into contract with vendors.
Effect: The auditor noted no instances noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of internal ocntrols over these compliance requirements provides an opportunity for noncompliance.
Repeat Finding: No
Recommendation: We recommend the Village evaluate its existing policies and procedures to determine where additional enhancements should be made or new policies created.
Views of
Responsible
Officials: There is no disagreement with the finding.