Finding 516059 (2024-005)

2024-005 Suspension and Debarment Federal Agency: Environmental Protection Agency Federal Program Name: Drinking Water State Revolving Fund Federal Assistance Listing Number: 66.468 Federal Award Identification Number and Year: Unknown Award Period: March 03, 2021 – December 31, 2026 Type of Finding: Material Weakness in Internal Control over Compliance Criteria or Specific Requirement: 2 CFR 200.320 Methods of Procurement state that when a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: The City did not check suspension and debarment status was verified prior to entering into contract with vendors. Questioned Costs: None noted Context: While performing compliance procedures, it was noted that the City did not check vendors for suspension and debarment. Cause: The City does not have controls related to ensuring suspension and debarment are verified prior to entering into contract with vendors. Effect: The City may contract with a vendor that has been suspended or debarred from receiving federal funds. Repeat Finding: No Recommendation: We recommend the City continue the process in assessing its financial management systems and related internal controls over federal awards during the 2025 fiscal year. This assessment should include evaluating existing policies and procedures to determine where additional enhancements should be made or new policies created, a plan to communicate these policies to City employees, and procedures to periodically review and update, as considered necessary. View of Responsible Officials There is no disagreement with the audit finding.