Finding Text
Federal agency: U.S. Department of Treasury Federal program name: COVID-19 State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP3395, 2022 Award Period: 6/13/2021 ? 12/31/2026 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance (Modified Opinion) Criteria or specific requirement: 2 CFR ? 180.300 requires that before the City enters into a covered transaction with an entity at a lower tier, the City 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. Condition: In our testing for the COVID-19 State and Local Fiscal Recovery Funds, we noted instances where there was no documentation of this verification being performed. Questioned Costs: None Context: During testing of the program, it was noted that five of five contracts that were tested were entered into without the City verifying and retaining documentation of said verification that the vendors were not suspended or debarred by the federal government. Cause: The City was unaware of the federal suspension and debarment requirements. Effect: The City is not in compliance with federal suspension and debarment requirements. Recommendation: We recommend the City ensure that this suspension and debarment verification occurs before entering covered transactions and that supporting documentation of this internal control is retained. Views of responsible officials: There is no disagreement with the audit finding.