Finding Text
Finding 2023-008 Debarment Review Documentation
21.027 - Coronavirus State and Local Fiscal Recovery Funds
Compliance Requirement: Procurement, Suspension, and Debarment
Type of Finding: Internal Control Deficiency
Condition: The City did not provide evidence of sufficient internal controls over debarment.
Criteria: Federal expenditure debarment requirements provide for internal controls to ensure federal funds are not used to pay contractors that are debarred.
Cause: The City relies on the City Planning Board to verify debarment status before contracts are awarded. There was no documenation that this check was performed.
Effect: Debarment may not have been verified.
Perspective: Although neither vendor was actually debarred, RBT noted that out of 2 transactions tested, the City did not maintain documentation of search for debarment for either.
Repeat Finding: This is a repeat of finding 2022-009.
Recommendation: RBT recommends that the City review its internal controls and documenation process for debarment when spending federal funds.
Auditee's Response: See corrective action plan.