FAC Explorer

Finding 1214617 (2024-013)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2026-05-13
Audit: 401284
Organization: Town of Saugerties (NY)
Auditor: RBT CPAS LLP

AI Summary

  • Core Issue: The Town lacks adequate internal controls to verify contractor debarment for federal fund usage.
  • Impacted Requirements: Compliance with 48 CFR sections 9.405-2(b) and 52.209-6 is necessary to prevent payments to debarred contractors.
  • Recommended Follow-up: Revise procurement policies to include procedures for reviewing contractor suspension and debarment.

Finding Text

Finding 2024-013 Procurement, Suspension and Debarment – Internal Control U.S. Department of Housing and Urban Development 21.027 – Coronavirus State and Local Fiscal Recovery Funds (“CSLFRF”) Condition: The Town did not have sufficient internal controls over debarment. Criteria: CSLFRF recipients are required under 48 CFR section 9.405-2(b) and the clause at 48 CFR section 52.209-6 to ensure federal funds are not used to pay contractors that are debarred. Cause: The Town did not have policies in place to review contractors for suspension and debarment. Effect: Debarment was not verified. Questioned Costs: None identified. Perspective: None of the transactions tested were with contractors that were suspended or debarred. Repeat Finding: Repeat Finding of 2023-013. Recommendation: RBT recommends that the Town review its internal controls process for procurement and revise the procurement policy to include suspension and debarment procedures when spending federal funds. Auditee’s Response: See corrective action plan.

Corrective Action Plan

Finding 2024-013 - Procurement, Suspension and Debarment - CSLFRF Auditee's Response and Planned Corrective Action The Town will review all contracts funded with CSLFRF for applicable contractors and perform verification of non suspension and non debarment. Policies will be reviewed and updated to insure adherence to this requirement. Planned Implementation Date of Corrective Action: January 2025 Person Responsible for Corrective Action: Fred Costello, Town Supervisor

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1214614 2024-010
    Material Weakness Repeat
  • 1214615 2024-011
    Material Weakness Repeat
  • 1214616 2024-012
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $1.53M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $194,783