Finding 28417 (2022-002)

Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of suspension and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: The City was not able to provide supporting documentation that the City verified the vendor was not suspended or debarred prior to entering the transaction. Questioned Costs: None. Context: Support could not be provided for one of three vendors. Cause: The City did not maintain supporting documentation that the verification of suspension or debarment was performed prior to entering into the contract. Effect: The auditor noted no instances of noncompliance with the provisions of suspension and debarment; however, we were not able to verify that the City followed their internal controls to ensure the vendor was not suspended or debarred prior to entering the transaction. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the City implement procedures to ensure that documentation of the verification process for suspension and debarment is maintained to support the City's internal control over compliance. View of Responsible Officials: There is no disagreement with the audit finding.