Finding 1191840 (2025-001)

Suspension and Debarment – Significant Deficiency in Internal Control Over Compliance Recommendation: We recommend the Commission continue with the policies and procedures now established and require documentation be maintained to verify vendors are not suspended or debarred prior to being paid with federal funds. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: In April 2024, the Commission established a policy requiring documentation be maintained to verify vendors are not suspended or debarred prior to being paid with federal funds. Easton Utilities immediately began checking new vendors as part of the vendor establishment process and began the process to verify existing vendors. Easton Utilities had around 3,000 established vendors in the system, leading to a longer period to verify all vendors. This finding relates to inventory transactions. At the time of purchase, this inventory was not yet determined to be related to the grant. The inventory was purchased through Easton Utilities' standard inventory procurement process related to keeping appropriate stock to support the ongoing business. Inventory is charged to the grant at the time it is used and requisitioned out. All material requisitions are approved by an appointed responsible person within the Easton Velocity team before entered by the Accounting team. The vendor was checked for status on 8/1/2024. 92% of the inventory associated with this purchase that was charged to the grant was charged after 8/1/2024. Name of the contact person responsible for corrective action: Carrie Manuel Planned completion date for corrective action plan: Corrective action was taken April 2024.