Finding Text
Finding 2024-004 Procurement and Suspension and Debarment – Internal Control over Suspension and
Debarment
Identification of the Federal Program:
Assistance Listing Number: 20.205
Assistance Listing Title: Highway Planning and Construction Program (Federal-Aid
Highway Program)
Federal Agency: U.S. Department of the Transportation
Federal Award Identification Number: HSIPL-5384(023); ER-15Y0(001); ER-15Y0(002);
ER-15Y0(003); ER-15Y0(004)
Assistance Listing Number: 21.027
Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds (CSLFRF)
Federal Agency: U.S. Department of the Treasury
Federal Award Identification Number: 1505-0271
Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation):
Prior to entering into subawards and contracts with award funds, recipients must verify that such contractors and subrecipients are not suspended, debarred, or otherwise excluded pursuant to 31 CFR section 19.300.
Condition:
During the audit, we noticed that the City did not perform suspension and debarment checks on the contractors that they hired with Highway Planning and Construction Program (“HPC”) and CSLFRF Funds.
Cause:
The City does not have formal policies and procedures in place to ensure the suspension and debarment review process over vendors that provides goods or services to the City’s programs was conducted prior to entering into a contract.
Effect or Potential Effect:
Without verifying whether vendors are suspended or debarred from working on federally-funded projects prior to the contract being awarded, the City could be contracting with vendors that are prohibited from working on federally funded projects and incurring potentially disallowed costs.
Questioned Costs:
None noted.
Context:
See condition above for the context of the finding.
Identification as a Repeat Finding, If Applicable:
No.
Recommendation:
We recommended the City develop policies and procedures to incorporate the suspension and debarment
verification prior to awarding contracts.
Views of Responsible Officials:
Management concurs with the finding and agrees to implement necessary corrective procedures.