Finding 1146975 (2024-003)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-07-07
Audit: 361517
Organization: City of Beloit (WI)

AI Summary

  • Issue: The City failed to verify suspension and debarment status for vendors in federal and state programs.
  • Requirements Impacted: Uniform Guidance and state statutes mandate this verification before procurement.
  • Recommended Follow-up: Implement procedures to ensure all vendors are checked for suspension and debarment status for federal and state fund usage.

Finding Text

Program Assistance Listing Number/State ID Number: 21.027 COVID-19 Coronavirus State & Local Fiscal Recovery Funds, 370.TA1 Knowles-Nelson Stewardship Program, 370.658 Municipal Flood Control Federal/State Grantor: U.S. Department of Treasury, Wisconsin Department of Natural Resources Criteria: The Uniform Guidance and state statutes require that entities receiving federal or state awards verify the suspension and debarment status of vendors before procurement takes place. Condition/Context: During testing, it was noted that the City did not check for suspension and debarment for one out of the two vendors tested for the federal program and two out of the two vendors tested for the state programs. Our sample was not statistically valid. Cause: The City does not have procedures in place requiring a review of suspension and debarment for all types of vendors. Effect: If transactions occur with a suspended or debarred vendor, the funding agency may disallow the costs associated with the transaction. Questioned Costs: None noted. Recommendation: We recommend that the City implement procedures requiring the verification of suspension and debarred status for all vendors that involve the use of federal or state funds. Management's Response: The City will add the process of verifying vendors to the check list for all projects using State and Federal funds, to verify no vendor is suspended or disbarred. This will ensure that no vendor is missed during the process.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 570533 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $8.01M
14.871 Section 8 Housing Choice Vouchers $3.95M
14.850 Public Housing Operating Fund $443,546
20.205 Highway Planning and Construction $293,498
14.872 Public Housing Capital Fund $186,586
14.239 Home Investment Partnerships Program $97,110
14.896 Family Self-Sufficiency Program $70,690
14.218 Community Development Block Grants/entitlement Grants $15,000
97.044 Assistance to Firefighters Grant $14,332
20.600 State and Community Highway Safety $11,696
16.609 Project Safe Neighborhoods $7,453
16.607 Bulletproof Vest Partnership Program $3,772
20.507 Federal Transit Formula Grants $-154,937