Finding Text
Finding 2024-003 AL No.: 66.468 Program Title: Drinking Water State Revolving Fund Federal Agency: U.S. Environmental Protection Agency Pass-Through Agency: Wisconsin Department of Natural Resources Award Number/Year: Unknown / 2024 Criteria: The Uniform Guidance requires in 2 CFR section 200.318(h) that entities receiving federal awards verify the suspension and debarment status of vendors before procurement takes place. Condition and Context: During testing, it was noted that the City did not document its review of suspension and debarment for both of the vendors tested for the federal program. Our sample was not statistically valid. Cause: The City did not complete and document the review of suspended and debarred vendors as required for expenditures of federal awards in accordance with the Uniform Guidance. 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 complete and document the review for suspended and debarred vendors as required for expenditures of federal awards in accordance with Uniform Guidance before contracting with a vendor. Management's Response: The City did not perform a review for suspended and debarred vendors. Neither we, nor our engineering firm, had prior knowledge of this requirement and were not informed by the State of Wisconsin to conduct such a review. Moving forward, the Utilities Department will work with our engineering firm to conduct a review for suspended and debarred vendors prior to contracting with a specific vendor. We will implement this protocol as of September 15, 2025.