Finding 481319 (2023-001)

Significant Deficiency

Requirement

Questioned Costs

Year

2023

Accepted

2024-08-16

Audit: 317392

Organization: City of Overland Park, Kansas (KS)

Auditor: Rubinbrown LLP

AI Summary

Core Issue: One contract lacked a required suspension and debarment clause, failing to confirm the vendor's eligibility for federal funding.
Impacted Requirements: Compliance with 2 CFR part 180, which mandates checks against debarred or suspended parties for federal assistance.
Recommended Follow-Up: Ensure all contracts include suspension and debarment clauses, especially when reallocating funds, to maintain compliance.

Finding Text

Finding No. 2023-001 Significant Deficiency: Procurement and Suspension and Debarment - Compliance and Control Finding ALN 21.027 - Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number: OMB 1505-0271 Year: 2021 Federal Agency: US Department of the Treasury Pass-Through Entity: Not Applicable Criteria Or Specific Requirement: The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: Audit procedures revealed that one contract tested did not include a suspension and debarment clause representing that the vendor is not suspended or debarred, or that the vendor was evaluated for suspension or debarment prior to allocating federal funds to the contract. Cause: The contract was re-allocated from using City funding to using Coronavirus State and Local Fiscal Recovery Funds, and an addendum was not subsequently added to the contract. Effect: Suspension and Debarment provisions were not met for one of three contracts tested. Questioned Costs: Not applicable. Context: Out of three contracts tested, one contract tested did not include a suspension and debarment clause representing that the vendor is not suspended or debarred. Identification As A Repeat Finding: This is a first-time finding.

Corrective Action Plan

Personnel Responsibile for Corrective Action: Michael Koss, City Attorney. Anticipated Completion Date: June 2024. One of the first projects earmarked for use of funds from the American Rescue Plan Act was the Tomahawk Ridge Community Center Generator Replacement project. The McGuire Electric contract for this project was written early in the process and did not include language addressing ARPA requirements (the contract was written as if the project would be City funded vs Federally funded). Because language addressing ARPA requirements was not included in the contract, Finance verified McGuire Electric was not on the suspension and Debarment list after the contract was written. Contracts for ARPA funded projects currently include language which addresses ARPA requirements.

Other Findings in this Audit

481320 2023-002

Significant Deficiency
1057761 2023-001

Significant Deficiency
1057762 2023-002

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
20.205	Highway Planning and Construction	$3.90M
21.027	Coronavirus State and Local Fiscal Recovery Funds	$2.18M
21.016	Equitable Sharing	$261,572
14.218	Community Development Block Grants/entitlement Grants	$124,430
16.738	Edward Byrne Memorial Justice Assistance Grant Program	$39,239
16.922	Equitable Sharing Program	$38,406
16.710	Public Safety Partnership and Community Policing Grants	$15,470
16.607	Bulletproof Vest Partnership Program	$8,795
20.600	State and Community Highway Safety	$6,527
20.616	National Priority Safety Programs	$6,479