Finding 1216352 (2025-001)

Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Procurement, Suspension and Debarment). Program. Coronavirus State and Local Fiscal Recovery Funds (SLFRF); U.S. Department of Treasury; Assistance Listing Number 21.027. Auditor Description of Condition and Effect: The Authority was unable to provide documentation supporting its consideration of suspension and debarment requirements for one of the nine vendors selected for testing. In addition, we noted a formal request for proposals (RFP) was not issued despite the procurement exceeding the Authority’s established threshold. As a result, no bid tabulation or supporting documentation of the procurement process was available. Auditor Recommendation: We recommend that the Authority strengthen internal controls over procurement and suspension and debarment compliance by (1) Implementing procedures to document verification of vendor eligibility (e.g., SAM.gov search results or signed certifications) at the time of contract award and retaining this documentation within the procurement file; (2) Ensuring that all procurements exceeding established thresholds are subject to formal bidding procedures in accordance with both Uniform Guidance and the Authority’s procurement policy; (3) Enhancing monitoring controls to ensure that procurement documentation is complete, consistently prepared, and properly retained in accordance with federal requirements. conducted for all applicable projects in accordance with federal procurement requirements. Corrective Action: The Authority will insure that Sam.gov Debarment is reviewed for all contractors prior to the awarding of a contract. It will be included on our project documentation check list and proof of the review will be included in both the vendor’s and property’s permanent files.The RFP audited project was a unique case and we believed we had followed all required procedures but realize some steps were missed. The Authority will follow all procedures and thresholds in accordance with the Authority’s procurement policies. Documentation will be consistently processed and included in all permanent files and folders.