Finding Text
Finding 2022-004 ? Assistance #21.027 ? Coronavirus State and Local Fiscal Recovery Funds ? Suspension and Debarment (Significant Deficiency): Condition: The contracts used by the City did not include required language or items related to suspension and debarment. Criteria: The City is required to perform a verification check, by checking SAM.gov, collecting a certification, or adding a clause to the covered transaction for each vendor. Questioned Costs: N/A Context: For 2 contracts tested, the City used a cooperative procurement contract but there was no evidence the City performed a verification check, collected a certification, or added a clause to the covered transaction for each vendor. The sample size was determined based upon guidelines provided by the AICPA which is not a statistically valid sample. Cause: The City believed this step had already been completed by the government entity that was a party to the cooperative procurement contract. Effect: The City may not detect vendors who are suspended or debarred from receiving federal funds. Recommendations: Revise policies to ensure the City performs a verification check, collects a certification, or adds a clause to the covered transaction for each vendor receiving federal funds. Views of Responsible Officials (Unaudited): Management acknowledges that there was a lapse in procurement internal controls and duties related to the verification of vendors receiving Coronavirus State and Local Fiscal Recovery Funds due to staff turnover and new positions within the Procurement Division. Management is in the process of reviewing its internal controls, processes, and procedures related to procurement. Updated procedures will include the verification of vendors through SAM.gov, collecting a certification, or adding a clause to the covered transaction for each vendor receiving federal funds.