Finding Text
Assistance Listing, Federal Agency, and Program Name 21.027, U.S. Department of Treasury, COVID 19 Coronavirus State and Local Recovery Funds Federal Award Identification Number and Year 2021 16100 5WAYMANPALNEI, 2024 Pass through Entity City of Toledo Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding No Criteria 2 CFR Section 200.318(h) requires the entity to award contracts only to responsible contractors that possess the ability to perform successfully under the terms and conditions of a proposed contract. The recipient or subrecipient must consider contractor integrity, public policy compliance, proper classification of employees (see the Fair Labor Standards Act, 29 U.S.C. 201, chapter 8), past performance record, and financial and technical resources when conducting a procurement transaction. Condition YMCA did not retain evidence to support procedures were performed to ensure a vendor was not suspended or debarred before entering into a covered transaction. 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 Not applicable Context Of the two procurements selected for testing, one procurement did not contain evidence of either (1) a search performed on SAM.gov to determine if the vendor was suspended, debarred, or otherwise excluded; (2) a certification from the contractor attesting that they are not suspended, debarred, or otherwise excluded; or (3) adding a clause or condition to the covered transaction with that vendor. Subsequently YMCA did perform the search and noted that the vendor was not suspended or debarred, thereby creating no questioned costs. Cause and Effect A control was lacking to ensure the YMCA performed procedures to verify that the vendor was not suspended, debarred, or otherwise excluded prior to entering into contracts which could result in material noncompliance with federal suspension and debarment standards. Recommendation We recommend that internal controls be put in place to ensure that the required verification is performed, documented, and reviewed prior to entering into contracts with vendors. Views of Responsible Officials and Planned Corrective Actions YMCA relied on outside legal counsel for guidance in the procurement process. In the future, YMCA will perform this procedure or ensure that legal counsel performs this procedure.