Finding 1230060 (2025-002)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-09-18
Audit: 411346
Organization: City of Cedarburg (WI)

AI Summary

  • Core Issue: The City lacks a process to verify that vendors are not suspended or debarred before awarding contracts.
  • Impacted Requirements: This violates 2 CFR §200.214, which prohibits contracting with debarred or suspended parties.
  • Recommended Follow-up: Implement a vendor review process for suspension and debarment checks during contracting and on a regular basis.

Finding Text

Finding No. 2025-002 – Review of Vendors for Suspension or Debarment Federal CFDA No. and Program: 66.468 – Drinking Water State Revolving Fund Pass-through Agency: WI DOA Award Number: 45211 Criteria: 2 CFR §200.214 restricts recipients and subrecipients of federal awards from awarding contracts with parties that are debarred, suspended, or otherwise excluded from participating in federal awards. The City should transact with vendors who are not suspended or debarred. Condition/Context: The City does not have a control or process to review vendors to verify they are not suspended or debarred. For this program, two vendors were awarded contracts. During testing, it was noted that the City did not have documentation of the search for suspension or debarment of either vendor. The sample was not a statistically valid sample. Questioned Costs: Unknown Effect: The City could transact with vendors who are suspended or debarred. Recommendation: We recommend that the City review vendors for suspension and debarment during the contracting process and periodically thereafter.

Corrective Action Plan

City Response and Corrective Action Plan: Management agrees with the recommendation. Moving forward the City will check vendors in SAM.gov before awarding contracts and will recheck them at least once a year for multi year agreements. Each check will be recorded in a central log, and supporting documentation will be kept in our contract and grant files. When needed, the City will collect a vendor certification at the time of award and review compliance annually. The City expects full implementation of these procedures within 60 days, with ongoing monitoring after that.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring

Programs in Audit

ALN Program Name Expenditures
66.468 DRINKING WATER STATE REVOLVING FUND $1.01M
21.019 CORONAVIRUS RELIEF FUND $52,147
45.310 GRANTS TO STATES $3,388