Finding Text
Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds
Assistance Listing Number: 21.027
Compliance Requirement: Procurement and Suspension and Debarment
Federal Agency: Department of the Treasury
Criteria or Specific Requirement – When a non-federal entity enters into a covered transaction with a vendor, the non-federal entity must verify that the vendor, as defined in 2 CFR Section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction.
Condition – The City did not verify that a vendor was not suspended, debarred, or otherwise excluded from a covered transaction.
Questioned Costs - None
Context – The City did not verify that a vendor was not suspended, debarred, or otherwise excluded for one of the two covered transactions selected for testing. The sample was not intended to be, and was not, a statistically valid sample.
Effect – The City did not verify that a vendor was not suspended, debarred, or otherwise excluded for a covered transaction as required.
Cause – Internal controls over procurement were not in place to ensure the City verifies that vendors were not suspended, debarred, or otherwise excluded for a covered transaction.
Identification as a Repeat Finding – N/A
Recommendation – Policies and procedures should be modified to ensure the City verifies that vendors are not suspended, debarred, or otherwise excluded for a covered transaction.
Views of Responsible Officials and Planned Corrective Actions – We agree with the finding. See separate report for planned corrective actions.