Finding 1155653 (2025-004)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2025-09-26
Audit: 367921
Organization: Charter Township of Redford (MI)

AI Summary

  • Core Issue: The Township did not keep records to prove it checked if contractors were suspended or debarred before awarding contracts under federal grants.
  • Impacted Requirements: This violates regulations in 2 CFR Part 180, which require verification of contractor eligibility for federal awards.
  • Recommended Follow-up: The Township should improve its controls by maintaining documentation of suspension and debarment checks for all contractors.

Finding Text

Assistance Listing, Federal Agency, and Program Name - 97.044, U.S. Department of Homeland Security, Assistance to Firefighters Grant and 21.027, U.S. Department of Treasury, COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Federal Award Identification Number and Year - N/A Pass through Entity - N/A Finding Type - Material weakness Repeat Finding - No Criteria - The regulations in 2 CFR Part 180 restrict making federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in federal awards. Nonfederal entities may satisfy the criteria prescribed by 2 CFR Part 180 by either checking SAM.gov exclusions, collecting a certification, or adding a clause or condition to the covered transaction with the contracted party. Condition - The Township did not have a control in place to retain evidence that it performed a check to verify the contractors used under these programs were not suspended or debarred. Questioned Costs - None If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - N/A Identification of How Questioned Costs Were Computed - N/A Context - The Township followed its procurement policy to enter into a contract with both vendors under these grants. However, they failed to maintain documentation regarding the check for suspension and debarment. The Township reviewed the SAM.gov website during testing and confirmed that the vendor was not listed as suspended or disbarred. Cause and Effect - The Township did not retain evidence to support that it had conducted the search for whether the vendors were suspended or debarred prior to entering into the contracts. The lack of control could result in the Township entering into contracts with contractors that are suspended or debarred. Recommendation - We recommend the Township enhance its controls as designed by retaining supporting documentation to support that contractors are not suspended or debarred. Views of Responsible Officials and Corrective Action Plan - The Township agrees with the finding and will work to put controls in place around retaining support for suspension and debarment checks.

Corrective Action Plan

Finding Number: 2025-004 Condition: The Township did not have a control in place to retain evidence that it performed a check to verify the contractors used under these programs were not suspended or debarred. Planned Corrective Action: The Township will put controls in place around retaining support for suspension and debarment verifications. Contact person responsible for corrective action: Finance Director Anticipated Completion Date: 3/31/2026

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1155652 2025-004
    Material Weakness Repeat
  • 1155654 2025-005
    Material Weakness Repeat
  • 1155655 2025-006
    Material Weakness Repeat
  • 1155656 2025-006
    Material Weakness Repeat
  • 1155657 2025-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
97.044 Assistance to Firefighters Grant $1.44M
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $1.29M
14.218 Community Development Block Grants/entitlement Grants $1.29M
66.458 Clean Water State Revolving Fund $368,624
16.710 Public Safety Partnership and Community Policing Grants $209,685
16.738 Edward Byrne Memorial Justice Assistance Grant Program $108,551
10.559 Summer Food Service Program for Children $35,713
90.404 Hava Election Security Grants $14,920
16.922 Equitable Sharing Program $11,085
16.607 Bulletproof Vest Partnership Program $3,506
14.218 Covid-19 - Community Development Block Grants/entitlement Grants $1,150