Finding Text
2023-004 – Federal Grants Management - Procurement Policy – Suspension and Debarment
Federal Agency: U.S. Department of Treasury
Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds
Assistance Listing Number: 21.027
Federal Award Identification Number and Year: SLFRP0135 – 2021
Pass-Through Agency: Wisconsin Department of Administration
Pass-Through Number(s): ARPA-NIF-072
Award Period: March 3, 2021 through December 31, 2024
Type of Finding:
• Material Weakness in Internal Control over Compliance and Other Matter
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: The City did not follow controls related to ensuring suspension and debarment status was verified prior to entering into contract with vendors.
Questioned Costs: None
Context: During our testing, it was noted that the City was not reviewing vendors prior to entering into a contract with a vendor to ensure the vendor was not on the suspended or debarred vendor list maintained by the General Services Administration.
Cause: The City was unaware the contractors were not being reviewed to ensure they were not suspended or debarred.
Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance.
Repeat Finding: The finding is not a repeat of a finding in the immediately prior year.
Recommendation: We recommend the City design controls to ensure an adequate review process is in place to review potential contractors to determine they are not suspended or debarred.
Views of responsible officials: There is no disagreement with the audit finding.