Finding 1215596 (2023-004)

Condition - The City did not have documentation of searching the excluded parties list and did not include suspension or debarment language in the contracts with its engineer or other contractors. Criteria - 2 CFR 200 requires recipients of federal awards to establish and maintain systems of internal control over compliance with the federal program requirements. Cause - The "suspension and debarment" element of the Procurement, Suspension and Debarment compliance requirement was overlooked by management in designing its internal controls over compliance. Effect - There is a risk that the City could contract with an entity who is either suspended or debarred from contracting for federally funded projects. Recommendation - We recommended the City implement internal controls to ensure contractors are not suspended or debarred from contracting for federally funded projects. Views of Responsible Officials - The City will develop controls to ensure compliance with the suspension and debarment requirements.