Finding Text
Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: The prior-year finding related to suspension and debarment procedures remains unresolved. During the current year, there were no federally funded covered transactions subject to suspension and debarment requirements available for testing. As a result, the City was unable to demonstrate that corrective actions related to the prior-year finding had been implemented and were operating effectively. Questioned Costs: None. Context: The City did not perform timely suspension and debarment verification for six out of the six samples tested. However, none of those vendors were suspended or debarred. Cause: The finding is reported as a repeat finding because no covered transactions occurred during the current year; therefore, the implementation and effectiveness of corrective actions could not be verified. Effect: There is a potential the City could contract with a disbarred or suspended entity if the verification is not performed. Repeat Finding: This is a repeat of a finding from the immediately prior year, finding number 2024-001. Recommendation: We recommend the City perform suspension and debarment procedures on all vendors with which it plans to enter into a covered transaction. View of Responsible Officials: There is no disagreement with the audit finding.