Finding Text
Federal Agency: U.S. Department of Treasury
Federal Program Name: Coronavirus State and Local Recovery Funds
Assistance Listing Number: 21.027
Federal Award Identification Number and Year: Unknown
Award Period: March 3, 2021 – December 31, 2026
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The Town should have internal controls designed to ensure compliance with those provisions. 2 CFR section 200.214 requires compliance with suspension and debarment standards.
Condition: No supporting documentation was maintained to support the vendor was not suspended or debarred. We confirmed that the vendors were not suspended or debarred.
Questioned costs: None.
Context: 2 of the 2 vendors tested.
Cause: Procedures are not in place to maintain documentation verifying vendors are not suspended or debarred.
Effect: Potential noncompliance with federal procurement, suspension, and debarment compliance requirements.
Recommendation: We recommend the Town implement control to ensure adherence to the suspension and debarment requirements of the Uniform Guidance.
Views of responsible officials: There is no disagreement with the audit finding.