Finding Text
Finding Reference: 2022-001 Federal Agency: Department of Treasury Federal Program Title and ALN: Coronavirus State and Local Fiscal Recovery Funds (21.027) Compliance Requirement: Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance Award Period: March 3, 2021 ? December 31, 2024, liquidated by December 31, 2026 Criteria or Specific Requirement: When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition/Context: Two vendors tested did not have proper documentation maintained to support suspension and debarment verification was performed prior to them being paid with federal funds. Per sam.gov, there was no history of the vendor being suspended or debarred. Questioned Costs: Undetermined Cause: The City?s policies and procedures did not require documentation be maintained to verify vendors are not suspended or debarred prior to paying with Federal grant funds. Effect: The City could make a disbursement to a vendor that is suspended or debarred. Recommendation: We recommend the City review its policies and procedures to require documentation be maintained to verify vendors are not suspended or debarred prior to being paid with federal funds. Views of Responsible Officials: The City concurs with the finding.