FAC Explorer

Finding 499276 (2023-003)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-09-29
Audit: 322086
Organization: Town of Warwick (NY)
Auditor: Rbt CPAS

AI Summary

  • Core Issue: The Town lacks adequate internal controls to verify if contractors are suspended or debarred.
  • Impacted Requirements: Compliance with 2 CFR Part 180, which prohibits contracting with suspended or debarred parties.
  • Recommended Follow-Up: Review and strengthen internal controls to ensure verification of suspension or debarment status before federal fund expenditures.

Finding Text

2023-03 Suspension or Debarment Assistance Listing Number: 21.027 Name of Program or Cluster: Coronavirus State and Local Fiscal Recovery Funds Type of Finding/Compliance Requirement: Significant Deficiency in Internal Control over Debarment Condition: The Town did not have sufficient internal controls over federal suspension or debarment verification. Criteria: Per 2 CFR Part 180, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Cause: The Town has not implemented controls to ensure that parties awarded contracts or subawards under covered transactions are not suspended or debarred. Effect: Although none of the transactions tested involved parties that were suspended or debarred, failure to check for suspension or debarment status puts the Town at risk of noncompliance. Recommendation: RBT recommends that the Town review its internal controls process to ensure that suspension or debarment status is verified when spending federal funds. Management’s Response: See corrective action plan.

Corrective Action Plan

With regard to Section III Federal Award Findings and Questioned Costs, 2023-03, Suspension or Debarment, whereby you identified a concern in that the Town of Warwick did not have sufficient internal controls of Federal suspension and debarment verification, please be advised of the following corrective action, which is effective immediately.It is the policy of the Town of Warwick to refrain from entering into contracts with (1) business entities, which are subject to Suspension or Debarment from Federal or State contracts, or (2) business entities, which utilize subcontractors which are subject to Suspension or Debarment from Federal or State contracts. Going forward, all RFPs will include the requirement that all bids specifically include language stating that the subject vender attests that it is not subject to Suspension or Debarment from Federal or State contracts, nor will it utilize any subcontractors subject to Suspension or Debarment from Federal or State contracts. When bids are opened and considered, the Town Clerk will check to ensure that the necessary language is included in the bid. The Town Clerk will also verify that the bidder, and any named subcontractor is not subject to Suspension or Debarment from Federal or State contracts. The Town will not consider any bid that lacks this necessary language. In the event that the Town Clerk identifies that a bidder, despite its attestation, is subject to Suspension or Debarment from Federal or State contracts, the Town Clerk will so inform that bidder. In the event that the Town enters into a contract, that is not subject to the bidding process, the Town Attorney shall review all proposed contracts includes language that the relevant party attests that it is not it is not subject to Suspension or Debarment from Federal or State contracts, nor will it utilize any subcontractors subject to Suspension or Debarment from Federal or State contracts. Should the relevant party become subject to Suspension or Debarment from Federal or State contracts, or utilize any subcontractors subject to Suspension or Debarment from Federal or State contracts, such would be grounds for termination of the subject contract.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring Significant Deficiency

Other Findings in this Audit

  • 1075718 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.13M
20.509 Formula Grants for Rural Areas and Tribal Transit Program $727,039
10.931 Agricultural Conservation Easement Program $567,000
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $101,592
20.205 Highway Planning and Construction $57,750
14.218 Community Development Block Grants/entitlement Grants $25,000
16.607 Bulletproof Vest Partnership Program $3,154
10.675 Urban and Community Forestry Program $1,000