Finding Text
Federal Agency: U.S. Department of Treasury/Environmental Protection Agency
Federal Program Title: Corona Virus State and Local Fiscal Recovery Funds/Capitalization Grants for
Clean Water State Revolving Fund
Assistance Listing Number: 21.027/66.458
Federal Award Identification Number: SLFRP3211/06000118
Pass-Through Agency: N/A/State of California Water Resources Control Board
Pass-Through Numbers: N/A/D2001031
Award Period: March 3, 2021 to December 31, 2024/April 1, 2018 to March 31, 2053
Type of Finding: Significant deficiency in internal control over compliance
Criteria or Specific Requirement: Pursuant to 31 Code of Federal Regulations section 19.300, 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.
Condition: Even though it appears that the City has internal controls over compliance in place, for some
contracts, the City was unable to provide specific supporting documentation of their verification that the
contractors were not suspended or debarred prior to entering into the contract.
Questioned Costs: None.
Context: Based on a statistically valid sample of five ALN 21.027 transactions, the City was unable to
provide specific supporting documentation of the suspension and debarment verification process for
five contracts. Based on a statistically valid sample of three ALN 66.458 transactions, the City was
unable to provide specific supporting documentation of the suspension and debarment verification
process for two contracts.
Cause: The City did not retain specific supporting documentation that the suspension and debarment
verification was performed prior to entering into the contract.
Effect: There were no instances of noncompliance with the provisions of suspension and debarment;
however, specific supporting documentation pertaining to internal controls over compliance with
suspension/debarment was incomplete.
Repeat Finding: This is not a repeat finding.
Recommendation: We recommend the City review and modify internal control procedures over
compliance to ensure that specific supporting documentation of the suspension and debarment
verification is retained.
View of Responsible Officials: There is no disagreement with the audit finding.