FAC Explorer

Finding 1944 (2023-001)

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Requirement
I
Questioned Costs
-
Year
2023
Accepted
2023-11-15
Audit: 3365
Organization: City of Ionia (MI)
Auditor: Vredeveld Haefner LLC

AI Summary

  • Core Issue: The City did not document vendor suspension and debarment status before entering into a contract.
  • Impacted Requirements: Current policies lack specific actions for documenting compliance with vendor certification.
  • Recommended Follow-Up: Update policies to ensure documentation of vendor status is required before purchases.

Finding Text

Condition and Criteria: The City's written policies and procedures provide for vendor certification of suspension and debarment status or City review of vendor suspension and debarment status on the SAM.gov website before applicable purchases. Cause: The City policy for compliance with suspension and debarment requirements did not provide for specific action necessary to document compliance. Effect: The City entered into a contract with a vendor before the vendor suspension and debarment status was documented. This vendor is not suspended or debarred per review of the SAM.gov website. Recommendation: The City should modify current policies and procedures to require documentation of vendor certification of suspension and debarment status or City review of vendor suspension and debarment status on the SAM.gov website before applicable purchases. Management Response: Management will modify policies and procedures to require document of vendor suspension and debarment status for all federally funded purchases or contracts.

Corrective Action Plan

The City of Ionia agrees with the finding identified and respectfully submits the following Corrective Action Plan for the year ending June 30, 2023. The City did not document the part of the policy that is needed to show that the vendor was not suspended or debarred from the Federal Government through SAM.gov before the contract was entered into. The City has discussed the procedure of policy and has identified that the review and documentation on the selected vendor needs to happen prior to approval of the contract by City Council. It will be the responsibility of the finance director and the city manager to adhere to the policy to document the review of the vendor through SAM.gov. if anyone has questions about the plan, please contact the city finance director at dirfinance@ci.ionia.mi.us.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.17M
20.509 Operating Assistance - Section 5311 - 2022 $81,628
20.509 Operating Assistance - Section 5311 - 2023 $71,362
20.516 Operating Assistance - Section 5311 - 2023 Jarc $38,412
20.516 Operating Assistance - Section 5311 - 20233 Jarc $28,443
20.516 Operating Assistance - Section 5311 - 2022 Jarc $23,266
20.509 Rtap Funding $10,431
20.509 Capital Grant - Section 5311 - Fy 2019 Capital $6,120
16.607 Patrick Leahy Bulletproof Vest Partnership Program $1,595
20.516 Operating Assistance - Section 5311 - 2019 Jarc $-429