FAC Explorer

Finding 391132 (2023-001)

Significant Deficiency Repeat Finding
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-04-01
Audit: 301716
Organization: City of Concord (CA)
Auditor: Maze & Associates Accountancy Corporation

AI Summary

  • Core Issue: The City failed to verify contractor suspension and debarment status, violating federal requirements for the COVID-19 recovery funds.
  • Impacted Requirements: Compliance with OMB Guidelines and the OMB Compliance Supplement, specifically regarding contractor eligibility checks.
  • Recommended Follow-Up: Ensure new procedures are in place to verify contractor status before fund expenditure and maintain documentation for future audits.

Finding Text

Finding Reference Number: SA2023-001 - Suspension and Debarment Documentation for Contracts and Subcontracts Assistance Listing Number: 21.027 Assistance Listing Title: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Name of Federal Agency: Department of the Treasury Federal Award Identification Number: SLFRP0424 Criteria: The award terms and conditions of the Coronavirus State and Local Fiscal Recovery Funds agreement with the Department of the Treasury requires that the City comply with OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement), 2 C.F.R. Part 180, including the requirement to include a term or condition in all lower tier covered transactions (contracts and subcontracts described in 2 C.F.R. Part 180, subpart B) that the award is subject to 2 C.F.R. Part 180 and Treasury’s implementing regulation at 31 C.F.R. Part 19. In addition, the OMB Compliance Supplement for the Program requires that 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 pursuant to 31 CFR section 19.300. Condition: Due to employee turnover in the Purchasing Department the City was unable to provide support showing that suspension and debarment checks were being completed during the fiscal year. However, we understand that subsequent to year end the City has implemented procedures for the documentation of the suspension and debarment checks. Cause: Due to turnover in staffing, the City was not able to provide support showing that the City was in compliance with the requirement to verify the status of contractors prior to entering into agreements with the entities. Effect: The City is not in compliance with the award terms and conditions and the OMB Compliance Supplement requirements of the Coronavirus State and Local Fiscal Recovery Funds program. Identification as a repeat finding: Yes, since 2022 Recommendation: We understand the City has developed procedures to ensure compliance with debarment and suspension provisions of the grant award terms and conditions and the OMB Compliance Supplement of the Coronavirus State and Local Fiscal Recovery Funds program subsequent to fiscal year 2023. However, the City should develop procedures to ensure compliance with grant award conditions prior to expending funds. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.

Corrective Action Plan

Finding Reference Number: SA2023-001 - Suspension and Debarment Documentation for Contracts and Subcontracts Assistance Listing Number: 21.027 Assistance Listing Title: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Name of Federal Agency: Department of the Treasury Federal Award Identification Number: SLFRP0424 • Fiscal Year of Initial Finding: 2022 • Name(s) of the contact person: Purchasing Manager • Corrective Action Plan: The purchasing division consists of (2) staff members. The division had turn over in both purchasing positions during fiscal year 2022/23. During this time, the documentation of disbarment checks by purchasing staff was not consistent. To strengthen this process, the City put multiple checks in place to ensure that City staff is aware of this requirement and is meeting this requirement: 1. Every Request for Proposal request that vendors certify that they are not on the exclusion list as part of the bidding or solicitation process. 2. When preparing a Request for a Purchase Order, departments have a checklist of "Required Documentation" to support the Requisition. A section has been added to check if the purchase will be funded by federal funds and, if yes, the department is to provide a screen shot of the disbarment check from sam.gov. 3. The REQUISITION/PO tracking sheet used by the Purchasing Account Clerk includes a column to mark that the disbarment check has been completed. 4. The instructions in the Purchasing Acct Clerk desk manual include instructions on how to complete a disbarment check as part of the "Creating a PO" script. • Anticipated Completion Date: June 30, 2024

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring

Other Findings in this Audit

  • 391130 2023-002
    Significant Deficiency Repeat
  • 391131 2023-002
    Significant Deficiency Repeat
  • 967572 2023-002
    Significant Deficiency Repeat
  • 967573 2023-002
    Significant Deficiency Repeat
  • 967574 2023-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $7.48M
20.205 Highway Planning and Construction $4.34M
14.218 Community Development Block Grants/entitlement Grants $725,743
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $85,264
20.600 State and Community Highway Safety $54,223
16.738 Edward Byrne Memorial Justice Assistance Grant Program $36,972