FAC Explorer

Finding 497433 (2023-006)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-09-20
Audit: 320180
Organization: City of Perris (CA)
Auditor: Rogers Anderson Malody & Scott LLP

AI Summary

  • Core Issue: The City failed to verify vendor non-suspension and debarment before signing agreements funded by ARPA.
  • Impacted Requirements: This violates CFR 536.270-4, risking future grant funding due to noncompliance.
  • Recommended Follow-Up: Implement a tracking system to ensure compliance with suspension and debarment checks before executing agreements.

Finding Text

Federal Program: American Rescue Plan Act (ARPA), AL 21.027 Criteria: Per CFR 536.270-4 – Contractors are not to be listed in the System for Award Management Exclusions. Condition: During the audit, we noted that vendor non-suspension and debarment was not verified prior to execution of agreement entered with program funds. Cause: The City did not have controls in place to ensure vendor non-suspension/debarment was verified prior to execution of agreement. Identification as a Repeat Finding: This is not a repeat finding. Effect: The City could jeopardize future grant funding due to program noncompliance. Questioned Costs: None. Context/Sampling: A nonstatistical sample of two procurement agreements out of ten agreements were selected for testing. This accounted for $2,109,696 & $290,639 of federal expenditures. Recommendation: We recommend the City implement a tracking system to remind staff of suspension and debarment requirements. Management’s Response: See corrective action plan.

Corrective Action Plan

2023-006: Procurement and Suspension and Debarment Requirements, Significant Deficiency and Noncompliance The City will improve its record‐keeping procedure to ensure that evidence of verification of contractors’ eligibility under the provisions of CFR 536.270‐4 is always maintained. The corrective action will be fully implemented during the Fiscal Year 2023/2024 audit. The contact persons for this corrective action are Martin Martinez (Management Analyst ‐ Public Services) and Sabrina Chavez (Director of Community Services) of the City of Perris.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 497432 2023-005
    Significant Deficiency Repeat
  • 1073874 2023-005
    Significant Deficiency Repeat
  • 1073875 2023-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $5.12M
14.218 Community Development Block Grants/entitlement Grants $1.71M
21.019 Coronavirus Relief Fund $111,589
10.551 Supplemental Nutrition Assistance Program $66,166
97.042 Emergency Management Performance Grants $9,903