Finding Text
Federal Agency: Environmental Protection Agency Federal Program Name: Capitalization Grants for Drinking Water State Revolving Fund Assistance Listing Number: 66.468 Federal Award Identification Number and Year: DW PFG F2022 IIJA1-EC, 2025 Pass-Through Agency: Minnesota Department of Employment and Economic Development Pass-Through Number(s): N/A Award Period: January 1, 2025, through December 31, 2025 Type of Finding: Material Weakness in Internal Control over Compliance Criteria or specific requirement: The Uniform Guidance requires the City to have either a written suspension and debarment policy or procedures in place per §180.995. Condition: The City does not have a written suspension and debarment policy or procedures in place. Questioned costs: No noncompliance noted. Context: The City does not have a written suspension and debarment policy or procedures in place. Cause: The City was unaware of this requirement. Effect: The City is not in compliance with this policy requirement. This could result in improper contracts being paid with federal funds. Repeat Finding: No Recommendation: We recommend the City implement a written suspension debarment policy or procedures that comply with the Uniform Guidance. Views of responsible officials: There is no disagreement with the audit finding.