Finding Text
Finding 2025-002: Procurement and Suspension and Debarment, Coronavirus State and Local Fiscal Recovery Funds AL# 21.027 Criteria: Federal grant provisions require that subrecipients verify vendors are not suspended or debarred from doing business with the federal government prior to contracting with those vendors for federal award programs. Condition: For the two contracts tested, the Town did not verify vendors were not suspended or debarred prior to contracting with them. Cause: Town personnel were unfamiliar with this procurement requirements of the grant. Effect or Potential Effect: The internal controls over procurement and suspension and debarment were not operating effectively. However, the contractors were not suspended or debarred from doing business with the federal government. Questioned Costs: None Recommendations: Prior to contracting with a vendor, the Town should ensure the contractor is not suspended or debarred from receiving federal funds and document the procedures that were performed in order to verify this. Management Response: Management agrees with this finding, and in the future will ensure a contractor is not suspended or debarred prior to entering into the contract with them.