Finding 1169759 (2023-003)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2026-01-20

AI Summary

  • Core Issue: The City did not verify contractor debarment status before signing contracts, violating federal compliance rules.
  • Impacted Requirements: Uniform Guidance mandates checking the Excluded Parties List for contractors to ensure compliance with federal funding.
  • Recommended Follow-Up: The City should enhance its procurement controls to consistently include federal requirements in all contracts.

Finding Text

Identification of the Federal Program - Assistance Listing Number 21.027 - Coronavirus State and Local Fiscal Recovery Funds, United States Department of Treasury, Pass-Through Entity: Mississippi Department of Environmental Quality. Assistance Listing Number 97.036 - Disaster Grants - Presidentially Declared Disasters, United States Department of Homeland Security, Pass-Through Entity: Mississippi Emergency Management Agency. Criteria - Uniform Guidance requirements state that recipients must verify that a proposed contractor does not appear on the federal government's Excluded Parties List prior to executing an agreement or contract with that entity. Condition - Debarment and suspension status was not verified prior to contracting with vendor, in accordance with compliance requirements. Cause - The City did not include federal suspension and debarment wording in contracts in accordance with their documented policies. Effect - Potential material noncompliance with federal award compliance requirements. Questioned Costs - There are no questioned costs associated with the finding. Context - The City has established a procedure for including federal language in all contracts. This procedure was established subsequent to entering into the identified contracts. Subsequent inquiry determined the contractors were not suspended or debarred. Repeat Finding - This is not a repeat finding. Recommendation - The City should expand its current internal control procedures they have in place for its procurement process to include consideration of federal funding requirements. View of Responsible Officials and Planned Corrective Action - The City concurs with the finding and has provided a response in the Corrective Action Plan.

Corrective Action Plan

The City will create a check-list of required documentation for Federal Grants to ensure all requirements are met. The Administration has already required added language in the contract that has the required language so the contractor can sign for this requirement.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1169749 2023-002
    Material Weakness Repeat
  • 1169750 2023-004
    Material Weakness Repeat
  • 1169751 2023-003
    Material Weakness Repeat
  • 1169752 2023-004
    Material Weakness Repeat
  • 1169753 2023-003
    Material Weakness Repeat
  • 1169754 2023-004
    Material Weakness Repeat
  • 1169755 2023-003
    Material Weakness Repeat
  • 1169756 2023-004
    Material Weakness Repeat
  • 1169757 2023-003
    Material Weakness Repeat
  • 1169758 2023-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $287,650
15.622 SPORTFISHING AND BOATING SAFETY ACT $100,009
15.605 SPORT FISH RESTORATION $82,125
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $81,877
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $50,268
81.052 ENERGY CONSERVATION FOR INSTITUTIONAL BUILDINGS $30,878
16.922 EQUITABLE SHARING PROGRAM $22,147
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $18,211
20.205 HIGHWAY PLANNING AND CONSTRUCTION $14,558
20.314 RAILROAD DEVELOPMENT $13,596
20.607 ALCOHOL OPEN CONTAINER REQUIREMENTS $5,239