Finding Text
2025 – 006 Suspension and Debarment Federal Agency: U.S. Department of Transportation – Federal Railroad Administration Federal Program Name: Consolidated Rail Infrastructure and Safety Improvements Program Assistance Listing Number: 20.325 Federal Award Identification Number and Year: 69A36525421690CRSIL FY2023-2024 Pass-Through Agency: City of Springfield, Illinois Pass-Through Numbers: 69A36525421690CRSIL Award Period: May 1, 2025 through January 31, 2029 Type of Finding: • Significant Deficiency in Internal Control over Compliance AND Other Matter Criteria or Specific Requirement: Uniform Grant Guidance (2 CFR 200.303) requires non-federal entities receiving federal awards to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to verify vendors are not suspended or debarred by checking the SAM.gov exclusions list, obtaining a certification from the vendor, or including a clause or condition in the covered transaction with the vendor. Documentation evidencing such verification should be retained. Condition: The County did not retain documentation verifying vendors were not suspended or debarred prior to entering into covered transactions. Questioned Costs: None Context: The County lacked documentation of suspension and debarment verifications for 5 of 13 vendors tested. Cause: The County does not have a formal process in place to ensure vendors are not suspended or debarred prior to entering into covered transactions. Effect: Without documented verification of suspension and debarment status, there is an increased risk of contracting with excluded parties, which could result in noncompliance with federal requirements and potential repayment obligations. Repeat Finding: The finding is not a repeat of a finding in the prior year. Recommendation: We recommend the County design and implement internal controls to ensure proper verification and documentation of suspension and debarment status for vendors prior to entering into contracts or purchases that exceed the covered transaction threshold. Views of Responsible Officials: There is no disagreement with the audit finding.