Finding Text
Federal Agency: U.S. Department of Treasury Federal Program: COVID-19 Flexible Facilities Program Assistance Listing # 21.029 Federal Award Identification Number and Year: CPFFN0201-2022 Pass-Through Agency: Wisconsin Department of Administration Pass-Through Number(): FFP 24-29 Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matters Criteria: The City should have a suspension and department policy that adheres to the requirements of the Uniform Guidance. 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. Non-federal entities are prohibited from contracting with or making subawards under covered transactions that are suspended or debarred. Before entering into a covered transaction, the entity must verify that the contractor is not suspended, debarred, or otherwise excluded from participating in the transaction. Condition: During our testing, it was noted the City did not have a suspension and debarment policy that adheres to the requirements of the Uniform Guidance. During Auditor testing over suspension and debarment, we noted the City did not perform a suspension and debarment check for two sample items. Questioned Costs: None Context: During our testing, it was noted that 2 out of the 3 items were not reviewed to ensure the contractor’s suspension and debarment status was documented. The sampling methodology used is not, and is not intended to be statistically valid. Cause: The condition is due to limited availability of staff and the governing board. Effect: The City could procure goods or services with federal funds that are not in accordance with requirements of the Uniform Guidance. Repeat Finding: The finding is new in the current year. Recommendation: The City should continue to evaluate its policies to ensure they are in accordance with Uniform Guidance. Views of Responsible Officials: There is no disagreement with the audit finding.