Finding Text
Procurement, Suspension, and Debarment
Finding Type:
Material Weakness in Internal Control over Compliance.
Programs:
United States Environmental Protection Agency
Capitalization Grants for Clean Water State Revolving Funds (ALN
#66.458) and Capitalization Grants for Drinking Water State Revolving
Funds (ALN #66.468)
Criteria:
The Uniform Guidance, §200.214, requires that a recipient of federal
awards 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/Finding:
During our audit procedures over the City’s debarment and suspension
procedures, we noted that the City relies on their engineers to make sure
contractors are not debarred, suspended, or otherwise excluded from
Federal assistance programs or activities. The City does not have a process
in place to verify the engineers are in fact monitoring the contractors on the
project.
Cause:
The City does not have the proper internal controls in place to ensure that
all contractors are not debarred, suspended, or otherwise excluded from
Federal assistance programs or activities.
Effect:
The City did not follow requirements to check whether a vendor is
suspended or debarred.
Questioned Costs:
No costs have been questioned as a result of this finding.
Recommendation:
We recommend that the City verify that any vendors or contractors selected
are verified as neither suspended or debarred per the SAM.gov website prior
to awarding the bid, and, that the City retain documentation of their
verification in the bid file.