Finding 20510 (2022-002)

2022-002 Significant Deficiency Federal Program Coronavirus State and Local Fiscal Recovery Funds (21.027) Procurement, Suspension, and Debarment Criteria Uniform Guidance states an entity needs to have procedures in place to ensure they do not enter into a covered transaction with a vendor that is suspended or disbarred from federal funds. Condition During testing of the City?s Procurement Policy, we noted that suspension and debarment verbiage was missing. Question Costs None ? This was a test based on the City?s Procurement Policy and this policy does not show financial information. Context Uniform Guidance states ?Review the non-federal entity?s procedures for verifying that an entity with which it plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded (2 CFR sections 200.212 and 200.318(h); 2 CFR section 180.300; 48 CFR section 52.2096)?. During this review, we noted that the city does not have procedures in place for verifying that they don?t enter into a covered transaction with a debarred or suspended vendor. Effect The City is not in compliance with requirements set by Uniform Guidance. Repeat Finding No Views of Responsible Officials The finance department experienced a significant turnover of experienced employees and in their absence the suspension and disbarment requirement was not reviewed prior to bids being awarded in some cases. The City is in the process of updating its procurement policy to include the suspension and debarment requirement.