Finding Text
Assistance listing number: 21.027 Program name: Coronavirus State and Local Fiscal Recovery Funds Pass-through entity: State of Michigan EGLE Project numbers: A7588-01 and A5817-01 Finding type: Material weakness and material noncompliance with laws and regulations Repeat finding: No Criteria: The grant agreement states that the City certifies that it agrees to check the federal debarment/suspension list at SAM.gov to verify that its contractors have not been debarred, suspended or had other related debarment and suspension issues or problems. Conditions: There is no evidence that the City checked SAM.gov as required. Questioned Costs: None Why Questioned Costs Not Determinable: N/A How Questioned Computed: N/A Context: The City did not have evidence of a check on SAM.gov as required. The City, however, did obtain signed certification statements from its contractors that they were not debarred or suspended. A SAM.gov check by the audit firm did not find any matches/debarment of the City’s contractors. Cause: The City may have not done the check on SAM.gov assuming that the contractor certifications were adequate or assuming that the project engineer did the SAM.gov check. Effect: The failure to check SAM.gov increased the potential of hiring a debarred contractor and possibly incurring related problems in the completion of the construction work. Recommendation: We recommend that the City establish a proper written procurement policy that establishes the needed procedure to always check for contractor debarment/suspension on SAM.gov. View and Response of Responsible Officials: The City is reviewing the requirements of UG for written policies and will determine the best course of action to create a written procurement policy and develop related procedures to do contractor checks on SAM.gov.