Finding Text
2025-006 Suspension and debarment (Significant Deficiency) US Treasury Federal award Y5123, MN036 (Passed through Florida Department of Environmental Protection) ALN 21.027 Coronavirus State and Local Recovery Funds Funding Year 2021 Condition: Review of checking for suspension and debarment was not done prior to contracting with the vendor. Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. Documentation of the check for suspension or debarment needs to be retained. Cause: The City did not complete a review of their vendors to ensure that the vendors were not suspended and debarred before the City had contracted with the vendor as there was no process in place to check a vendor’s status. Potential Effect of Condition: Good or services could be contracted with a suspended or debarred vendor, creating questioned costs. Questioned Costs: None. The finding relates only to internal control. Perspective: The City does not have controls designed to routinely verify vendors for covered transactions are not suspended or debarred. Recommendation: The City should perform SAM checks for all vendors or contractors prior to entering into covered transactions and retain documentation of these processes. Management Response: Management concurs with the finding. As part of the federal grant award process, City Management will ensure SAM checks are performed prior to contracting with vendors.