Finding Text
2022 ? 001 Federal Agencies: U.S. Department of Treasury Federal Program Names: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agency: Direct Award and Wisconsin Department of Health Services Award Period: March 2020 through December 31, 2024 Type of Finding: ? Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per 2 CFR Part 200 Section 200.214 - Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: During our testing, we noted the City of Wauwatosa did not have adequate internal controls designed to ensure vendors were not suspended or debarred. Questioned costs: None Context: For 1 of the 1 vendors, with in the Coronavirus State and Local Fiscal Recovery Fund program, selected for testing, the City did not verify and retain documentation of the verification for any that vendors were not suspended or debared by the Federal Government. The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Cause: The City had not designed and implemented controls related to the verification and documentation of vendor's status as not suspended or debarred with the Federal Government. Effect: The lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: The finding is a repeat finding of 2021-001. Recommendation: We recommend the City of Wauwatosa design controls to ensure an adequate review process is in place to review potential contractors to determine they are not suspended or debarred. Views of responsible officials: There is no disagreement with the audit finding.