Finding 34016 (2022-004)

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Requirement
I
Questioned Costs
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Year
2022
Accepted
2023-08-29
Audit: 31085
Organization: City of Oelwein (IA)

AI Summary

  • Core Issue: The City failed to verify if a vendor was suspended or debarred before engaging in transactions involving federal funds.
  • Impacted Requirements: This oversight violates federal regulations outlined in 2 CFR Part 180.300 regarding procurement suspension and debarment.
  • Recommended Follow-Up: The City should implement a process to verify vendor status using the SAM Exclusion database at SAM.gov for all contracts involving federal awards.

Finding Text

Procurement Suspension & Debarment Criteria ? Title 2, U.S. Code of Federal Regulations Part 180.300 When a non-federal entity enters into a covered transaction with an entity at a lower tier, the nonfederal 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. Condition ? The City?s management did not verify that the vendor was not suspended or disbarred. Cause ?The City?s management were not aware that they needed to verify that the entity was not suspended or debarred. Effect ? The City did not have a process to indicate that the vendor was not suspended or disbarred from doing business with federal funds. The City is not in compliance with Federal regulations pertaining to procurement suspension & debarment as required by the Uniform Guidance. Recommendation ? The City should verify that each vendor or contracts paid with federal awards, are not suspended by checking the System for Awards Management (SAM) Exclusion available at SAM.gov. Corrective Action ? The City was unable to check to make sure the contractor was not disbarred from federal grants. The City is working through a process to ensure all contractors are not on the disbarred list. This requirement is infrequent and may not come to the city for several years. The City will check SAMS numbers and do more work on the front end for each contractor Conclusion ? Response accepted.

Corrective Action Plan

The City will verify that all vendors and contracts paid with federal awards, are not suspended or disbarred by verifying it on the SAM website.

Categories

Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
97.044 Assistance to Firefighters Grant $761,905
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $317,930
10.766 Community Facilities Loans and Grants $264,282
20.106 Airport Improvement Program $79,129
21.019 Coronavirus Relief Fund $44,776
45.310 Grants to States $5,000
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $4,699