Finding Text
Federal Program: Coronavirus State and Local Fiscal Recovery Funds (21.027). Criteria: According to 2 CFR Section 180.300, when a non-federal entity enters into a covered transactions with an entity at a lower tier, the non-federal entity must verify that the entity is not suspended, debarred, or otherwise excluded. Condition: The City had transactions in excess of $25,000 with two vendors in which they did not verify that the entity was not suspended, debarred, or otherwise excluded. Cause: The City was not aware of this requirement. Effect: The City was at risk of making material payments to a vendor who is not allowed to do business with the federal government. There was no noncompliance, but there was no internal control in place to prevent noncompliance. Questioned Costs: None. Context: Payments to the vendors totaled $1,072,854. As noted above, there was no noncompliance, but there were no internal controls in place to ensure compliance. Repeat Finding: No. Recommendation: We recommend the City check the excluded parties list system or collect certifications from any vendor in which the City expects to spend more than $25,000 of federal grant funds for the year. Views of Responsible Officials and Planned Corrective Actions: The City agrees with the recommendation and will verify vendor status before making qualified payments.