Finding Text
SECTION III ? FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding 2022-002 Federal program: 20.513 Total Enhanced Mobility of Seniors and Individuals With Disabilities Federal agency: U. S. Department of Transportation Award year: 2021-2022 Criteria: 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. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at sam.gov/content/home, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Condition: The City?s internal controls did not properly identify and/or document its covered transactions of $25,000 or more, that require verification. Cause: The City did not retain evidence that it complied with the suspension and debarment requirements. Effect or potential effect: The City is not able to show compliance with suspension and debarment requirements. Questioned costs: No questioned costs identified. Context: Out of six covered transactions totaling $1,388,223, a sample of two transactions totaling $1,082,370 was selected. The two transactions tested did not have evidence of System for Award Management (SAM) check performed. Recommendation: The City should implement controls to document compliance with suspension and debarment requirements. Views of responsible officials: The City understands and concurs with this finding and recommendation.