Finding Text
U.S. Environmental Protection Agency Passed through State of Nevada Division of Environmental Protection Sewer Overflow and Stormwater Reuse Municipal Grant Program, 66.447 Procurement, Suspension and Debarment Significant Deficiency in Internal Control over Compliance and Noncompliance Grant Award Number: Affects all grant awards under assistance listing number 66.447 on the Schedule of Expenditures of Federal Awards Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires contracts to include Disadvantaged Business Enterprise (DBE) Contract Terms and Conditions as specified by EPA regulations. Condition: Per review of the contract with the vendor, the required Disadvantaged Business Enterprise (DBE) Contract Terms and Conditions were missing. Cause: The City did not have adequate controls to ensure that DBE contract terms and conditions were included as required. Effect: The City may not be in compliance with EPA DBE requirements, potentially impacting eligibility for federal funding. Questions Costs: None reported. Context/Sampling: All contracts were selected for testing as there was only one contract during the year; the contract reviewed did not include the required DBE terms. Repeat Finding from Prior Year: No. Recommendation: We recommend the City enhance controls to ensure all required DBE contract terms and conditions are included. Views of Responsible Officials: Management agrees with the finding.