Finding Text
Assistance Listing Number, Federal Agency, and Program Name - ALN 21.027, Coronavirus State and Local Fiscal Recovery Fund Federal Award Identification Number and Year - SLFRP2024-2001 Pass through Entity - Not applicable Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - The City should ensure there is a process in place to verify, prior to entering into contracts with vendors, that such vendors are not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300. Condition - We noted during testing that the City had no procedure in place to verify contractors are not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300 prior to entering into contracts with award funds. Questioned Costs - None Identification of How Questioned Costs Were Computed - Not applicable Context - From July 1, 2021 through June 30, 2022 any contractor the City entered into a contract with using federal award funds should be verified, that they are not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300. We selected fourteen contractors for testing, and five lacked any verification. However based on our testing we noted that all five contractors were not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300, thereby creating no questioned costs. Cause and Effect - The City is required to verify that any contractor the City plans to enter into a contract with, using federal award funds, is not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300. Recommendation - We recommend that an internal control be put in place to ensure the verification of contractors occurs. Views of Responsible Officials and Corrective Action Plan - Procedures have already been put into place to ensure that each new contractor is not on the Federal list of suspended and/or debarred contractors. Furthermore, all vendors previously paid have been searched for in the Federal list and none were suspended and/or debarred.