Finding Text
2022-001 - Suspension and Debarment Federal Agency: U.S. Department of Treasury Federal Program Title: Corona Virus State and Local Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number: CA0210 Pass-Through Agency: N/A Pass-Through Numbers: N/A Award Period: March 3, 2021 to December 31, 2024 Type of Finding: Significant deficiency in internal control over compliance Criteria or Specific Requirement: Pursuant to 31 Code of Federal Regulations section 19.300, prior to entering into subawards and contracts with award funds, recipients must verify that such contractors and subrecipients are not suspended, debarred, or otherwise excluded. Condition: Even though it appears that the City has internal controls over compliance in place, for some contracts, the City was unable to provide specific supporting documentation of their verification that the contractors were not suspended or debarred prior to entering into the contract. Questioned Costs: None. Context: Based on a statistically valid sample of five, the City was unable to provide specific supporting documentation of the suspension and debarment verification process for three contracts. Cause: The City did not retain specific supporting documentation that the suspension and debarment verification was performed prior to entering into the contract. Effect: There were no instances of noncompliance with the provisions of suspension and debarment; however, specific supporting documentation pertaining to internal controls over compliance with suspension/debarment was incomplete. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the City review and modify internal control procedures over compliance to ensure that specific supporting documentation of the suspension and debarment verification is retained. View of Responsible Officials: There is no disagreement with the audit finding.