Finding Text
Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19: American Rescue Plan Act - Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agency: City of Pasco Pass-Through Number(s): N/A Award Period: July 26, 2024 – September 2, 2026 Type of Finding: Significant Deficiency in Internal Control Over Compliance – Suspension & Debarment Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards §200.214 requires non-Federal entities to ensure that contractors are not suspended or debarred prior to entering into covered procurement transactions and to maintain controls to verify compliance with suspension and debarment requirements. Condition: Verification was not formally documented. As such, we were unable to verify this was performed prior to engaging with the contractors. Questioned costs: None. Context: Suspension and debarment verification support from SAM.gov was not retained, and no documentation was available to evidence that verification procedures were performed prior to the Club engaging with the contractors. Cause: Management did not retain documentation evidencing the performance of suspension and debarment verification procedures. Effect: The Club did not have documented evidence to demonstrate compliance with suspension and debarment verification requirements. Repeat finding: Not a repeat finding. Recommendation: We recommend the Club establish and retain documentation to evidence that suspension and debarment verification procedures are performed prior to engaging with contractors. Views of responsible officials: There is no disagreement with the audit finding.