Finding 51561 (2022-008)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-05-30
Audit: 48358
Organization: City of Victorville (CA)

AI Summary

  • Core Issue: The City failed to document the required verification of vendor suspension or debarment before contract agreements.
  • Impacted Requirements: Compliance with 2 CFR Part 200, which mandates internal controls for suspension and debarment verification.
  • Recommended Follow-Up: Implement procedures to ensure proper documentation is maintained for suspension and debarment checks on vendors.

Finding Text

Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: None Award Period: Fiscal Year 2021-2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance (Suspension and Debarment) ? Other Matter (Suspension and Debarment) Criteria or Specific Requirement: Suspension and Debarment: 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of suspension and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: The City was not able to provide supporting documentation that the verification of suspension or debarment was performed prior to entering into the contract. Questioned Costs: None noted. Context: There were only two vendors during fiscal year 2021-2022 that were a covered transaction for this program. While the City did not perform the suspension and debarment verification for these vendors tested, the vendors were not on the suspended and debarred listing. Cause: The City did not maintain supporting documentation that the verification of suspension or debarment was performed prior to entering into the contract. The vendors are routinely used for IT procurement and the City has ongoing contracts. The City was under the impression that a separate verification of this vendor was not necessary. Effect: No vendors were noted that were suspended or debarred; however, there was no documentation retained to verify that the City followed their internal controls to ensure the vendor was not suspended or debarred prior to entering into the transactions. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the City implement procedures to ensure that verification documentation for suspension and debarment is maintained to support the City's internal control over compliance.

Corrective Action Plan

Views of Responsible Officials: Finance purchasing staff will hold annual training which will include requirements for all purchases, based on funding, to go through this division to ensure that all required verifications and paperwork are adhered to by city personnel. Purchasing staff will also distribute a Purchasing Checklist to each department confirming the requirement to process grant funded projects/procurements through the Purchasing Division which is set up to verify suspension and disbarment status of potential awarded suppliers/contractors.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 51557 2022-004
    Significant Deficiency
  • 51558 2022-005
    Significant Deficiency Repeat
  • 51559 2022-006
    Significant Deficiency Repeat
  • 51560 2022-007
    Significant Deficiency Repeat
  • 627999 2022-004
    Significant Deficiency
  • 628000 2022-005
    Significant Deficiency Repeat
  • 628001 2022-006
    Significant Deficiency Repeat
  • 628002 2022-007
    Significant Deficiency Repeat
  • 628003 2022-008
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
20.205 Highway Planning and Construction $15.47M
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $1.80M
14.218 Community Development Block Grants/entitlement Grants $1.67M
20.106 Airport Improvement Program $940,527
14.218 Covid-19 Community Development Block Grants/entitlement Grants $446,317
14.239 Home Investment Partnerships Program $314,361
20.106 Covid-19 Airport Improvement Program $94,327
97.042 Emergency Management Performance Grants $21,449
16.738 Edward Byrne Memorial Justice Assistance Grant Program $8,918
21.019 Covid-19 Coronavirus Relief Fund $2,139