Finding Text
Finding #SA2022-005 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 Treasury
Pass Through Entity: California State Water Resources Control Board
Federal Award Identification Number: 68-0281986
Criteria: The award terms and conditions of the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) 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: The City was unable to provide support showing that suspension and debarment checks were completed during the fiscal year and prior to disbursement to the vendors. We did note that the two vendors we selected for testing were not listed as suspended or debarred on the SAM.gov system as of July 7, 2024.
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 CSLFRF program.
Recommendation: The City must develop procedures to ensure compliance with debarment and suspension provisions of the grant award terms and conditions and the OMB Compliance Supplement of the CSLFRF program prior to expending additional funds.
View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.