Finding 1203001 (2025-001)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-03-30
Audit: 396261
Organization: Town of Wolcott, Vermont (VT)

AI Summary

  • Core Issue: The Town failed to verify contractor eligibility by not checking sam.gov for debarment or suspension status.
  • Impacted Requirements: This oversight violates federal regulations outlined in 2 CFR 200.214 and 2 CFR 200.317-200.327.
  • Recommended Follow-up: Revise the procurement policy to ensure compliance with federal requirements regarding contractor eligibility checks.

Finding Text

2025-001 - Procurement, Debarment and Suspension Federal Program Information: U.S. Department of the Treasury, passed through the Vermont Department of Public Safety CFDA - 21.027 - Coronavirus State and Local Fiscal Recovery Funds Criteria: The following CFRs apply to this finding: 2 CFR 200.214, 2 CFR section 200.317-200.327 Condition: During audit procedures it was identified that the Town did not check sam.gov to confirm that the contractor was not debarred or suspended from receiving federal funds nor did they request a Suspension and Debarment certification from the contractor. Cause: The Town does not have the necessary internal controls over compliance. Effect: Contracts may be awarded to contractors that are debarred or suspended from working on federally funded projects. Identification of Questioned Costs: None Identified. Context: Two contracts were reviewed out of three. This is not a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the Town revise its procurement policy to fully incorporate all elements required by 2 CFR §200.317-200.327. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan.

Corrective Action Plan

Corrective Action Plan Contact Person: Belinda Harris Clegg, Wolcott Town Clerk & Treasurer Corrective Action: The Selectboard will update their Purchasing Policy to include checking Sam.gov to confirm if a contractor has not been debarred or suspended from receiving federal funds and to request a Suspension and Debarment certification from the contractor. Anticipated Completion Date: April 30, 2026

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1202999 2025-001
    Material Weakness Repeat
  • 1203000 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $1.13M
10.689 COMMUNITY FOREST AND OPEN SPACE CONSERVATION PROGRAM (CFP) $580,000
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $166,996
66.458 CLEAN WATER STATE REVOLVING FUND $83,984
20.205 HIGHWAY PLANNING AND CONSTRUCTION $23,752