Finding Text
Finding 2023-004
Federal Agencies: Federal Department of Transportation
Federal Program Name: Federal Transit Formula Grant
Assistance Listing Number: 20.507
Federal Award Identification Number and Year: N/A
Pass-Through Number(s): IL-2020-024-00, IL-2022-029, and IL-2022-008-00
Award Period: 2020 - 2022
Federal Agencies: U.S. Department of Treasury
Federal Program Name: COVID-19 State and Local Fiscal Recovery Funds
Assistance Listing Number: 21.027
Federal Award Identification Number and Year: N/A
Pass-Through Agency: N/A
Pass-Through Number(s): N/A
Award Period: March 3, 2021 – December 31, 2026
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
Criteria or Specific Requirement: Nonfederal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220).
Condition: Several purchases for Federal awards did not complete the suspension and debarment procedures prior to entering into the transactions.
Questioned Costs: None
Context:
Federal Transit Formula Grant – Two of two contractors were selected for testing. For one of the contractors, there was no documentation maintained to support the county completed the suspension and debarment procedures.
COVID-19 State and Local Fiscal Recovery Funds – Two of four contractors were selected for testing. For one of the contractors, there was no documentation maintained to support the county completed the suspension and debarment procedures.
Cause: The processes for suspension and were not properly followed during the current fiscal year.
Effect: A lack of internal control procedures can lead to noncompliance with grant requirements.
Repeat Finding: N/A
Recommendation: We recommend following the requirements for suspension and debarment per the Uniform Guidance, including the date performed and retain required documentation.
Views of Responsible Officials: The Citty recognizes and accepts the audit finding as presented.