Finding 394594 (2023-005)

Federal Agency: Environmental Protection Agency Federal Program Name: Capitalization Grant for Clean Water State Revolving Fund Assistance Listing Number: 66.458 Federal Award Identification Number and Year: Unknown and 2023 Pass-Through Agency: Minnesota Public Facilities Authority Pass-Through Number: MPFA_CWRF-L-046-FY23 Award Period: January 1, 2023 to December 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Context: One out of two vendors selected were not verified against the suspended/debarred vendor report. Condition: During suspension and debarment testing, it was noted that the City did not verify that one of two vendors/contractors were not suspended or debarred. Questioned Costs: None Criteria: Per 2 CRF section 180.995, the City is to review vendors showing they are not excluded or debarred for participating in procurement transactions that use federal funds prior to awarding the contract. Cause: Lack of oversight of management. Effect: Lack of proper documentation of controls over compliance with suspension and debarment requirements could result in paying suspended or debarred vendors. This could ultimately result in questioned costs.