Finding 1175159 (2024-003)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2024

Accepted

2026-02-24

Audit: 388778

Organization: City of Lancaster (CA)

Auditor: CLIFTONLARSONALLEN

AI Summary

Answer: The City failed to show proof of suspension and debarment checks for three vendors.
Trend: This issue highlights a recurring lack of documentation for vendor eligibility in federally funded programs.
List: Follow up by ensuring proper checks are documented for all vendors before contracts are signed.

Finding Text

The City did not provide documentation or audit evidence demonstrating that suspension and debarment checks were performed for three vendors selected for testing. These vendors were contracted under a federally funded program, and no records were available to confirm that the City verified their eligibility prior to entering into contractual agreements.

Corrective Action Plan

We recommend the City implement and enforce a standardized procedure for verifying and documenting suspension and debarment checks for all vendors receiving federal funds. This should include maintaining evidence of SAM.gov checks, vendor certifications, or contract clauses as part of the procurement file.

Other Findings in this Audit

1175158 2024-002

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
14.218	COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS	$4.66M
14.239	HOME INVESTMENT PARTNERSHIPS PROGRAM	$1.27M
16.753	CONGRESSIONALLY RECOMMENDED AWARDS	$1.04M
20.205	HIGHWAY PLANNING AND CONSTRUCTION	$611,247