Finding 518014 (2024-005)

SUSPENSION AND DEBARMENT United States Department of Housing and Urban Development Econcomic Development Initiative, Community Project Funding, and Miscellaneous Grants Federal Assistnance Listing No. 14.251 Criteria: In addition to other provisions required by the federal agency or non-federal entity, all contracts made by the non-federal entity under the federal awards must contain certain provisions as provided in Appendix II of Part 200 of the Uniform Guidance. Additionally, a non-federal entity is required to maintain documentation of vendor suspension and debarment verification. Universe/Population: There was a total of three vendors which met the dollar threshold for complying with procurement standards. Condition: Each of the three vendors were selected for testing. Each of the contracts were for services. Two of the three contracts did not contain required contract language of the vendor certifying it is not suspended or debarred by the federal government. Additionally, the City did not maintain documentation of vendor suspension and debarment verification. Cause: The City does not have policies and procedures in place to ensure that the required contract provisions of Appendix II of Part 200 of the Uniform Guidance were included in contract agreements. Additionally, the City does not have controls in place to document vendor suspension and debarment verification. Questioned Costs: None. Effect: The City may be in noncompliance with the Uniform Guidance Procurement standards. Recommendation: The City should implement policies and procedures that ensure all required contract provisions of Appendix II of Part 200 of the Uniform Guidance are included in contract agreements. Additionally, the City should design and implement controls to ensure documentation of vendor suspension and debarment verification is maintained. Identification of a repeat finding: This is a new finding in the current year. View of Responsible Official: Management concurs with the finding.