Finding 38831 (2022-002)

Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted the City did not perform the suspension and debarment verification for one of the samples tested. Questioned Costs: None. Context: There were only two vendors subject to suspension and debarment testing for FY 21-22. While the City did not perform the suspension and debarment verification for one of these vendors tested, that vendor was not on the suspended and debarred listing. Cause: The vendor is a subsidiary of Motorola Solutions with whom the City has ongoing contracts. The City was under the impression that a separate verification of this vendor was not necessary. Effect: Internal control procedures over suspension and debarment compliance were not performed. Recommendation: We recommend the City perform suspension and debarment procedures on all vendors with which it plans to enter into a covered transaction. View of Responsible Officials: There is no disagreement with the audit finding.