Finding 1222584 (2024-005)

Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP0136-2021 Award Period: 3/3/21- 12/31/26 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Per 2 CFR § 200.214, non-federal entities are prohibited from contracting with or making subawards to parties that are suspended or debarred. Condition: The City did not have a documented process in place to verify and document suspension and debarment status for vendors paid with federal funds. Questioned costs: None Context: During our testing, it was noted that all samples selected for testing were not reviewed to ensure the contractor’s suspension and debarment status was documented. Cause: This issue was identified through testing of procurement and disbursements related to federal programs. A sample of vendors did not have evidence of suspension and debarment verification. Effect: The City is at risk for noncompliance with Federal grants as it relates to suspension and debarment. Repeat Finding: No Recommendation: We recommend the City implement formal procedures to verify and document suspension and debarment status for all vendors paid with federal funds. Views of responsible officials: Management agrees with the finding and recommendation.