FAC Explorer

Finding 51843 (2022-001)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-04-12
Audit: 42772
Organization: City of Columbus, Ohio (OH)
Auditor: Ohio Auditor of State

AI Summary

  • Core Issue: The City of Columbus lacked proper controls to verify that vendors in covered transactions were not suspended or debarred, risking federal fund misuse.
  • Impacted Requirements: Compliance with 2 CFR §180.305 and related regulations, which mandate checks against SAM exclusions for transactions over $25,000.
  • Recommended Follow-Up: Implement a verification process for vendors, including checking SAM exclusions and obtaining necessary certifications before awarding contracts with federal funds.

Finding Text

2 CFR ?2867.10 gives regulatory effect to the Department of Justice for 2 CFR ?180.305 which states that Non-Federal entities are prohibited from entering into a covered transaction with parties that are suspended or debarred or whose principals are suspended or debarred, unless the Federal agency responsible for the transaction grants an exception under 2 CFR ? 180.135. 2 CFR ?180.200 identifies ?covered transactions? as non-procurement or procurement transactions at the primary tier, between a Federal agency and a person; or at the lower tier, between a participant in a covered transaction and another person. Procurement contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) are covered transactions if the contracts are expected to equal or exceed $25,000 or meet certain other specified criteria outlined in 2 CFR ? 180.220. All non-procurement transactions (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless exempt by 2 CFR ? 180.215. When a non-Federal entity enters a covered transaction, the non-Federal entity must verify that the entity is not suspended or debarred or otherwise excluded. This verification may be accomplished by checking SAM exclusions (http://sam.gov); collecting a certification from the entity, or adding a clause or condition to the covered transactions with that entity. Furthermore, the City of Columbus Purchasing Policy Manual - Bid and Proposal Evaluations - Federal Grants - Special Instructions provides "each department will review its Federal grants program policies and procedures for contract routing and update them immediately to include the following: A SAM.gov website review shall be included as the first page with each original contract scanned into Dynamics 365." The City did not have the proper internal controls in place to verify that all entities, with whom the City had entered covered transactions, had not been suspended or debarred. During testing of the contract expenses for AL #16.922 Equitable Sharing Program Funds grant programs, we noted seven out of eight instances in which the programs had a payment to a vendor of more than $25,000 and no evidence the City checked the SAM exclusions, collected a certification from the entity, or added a clause or condition to the covered transaction with the vendor could be provided. Failing to have the appropriate controls in place may result in vendors who are suspended or debarred receiving federal funds. Prior to contracting with vendors that will be paid with federal funds, the City should verify the vendor is not suspended or debarred by checking the SAM exclusions, collecting a certification from the vendor, or adding a clause or condition to the covered transaction with the vendor.

Corrective Action Plan

The City concurs with the finding and will take the following actions in response: ? Provide training to personnel regarding the requirement and expectation for retention of documentation verifying SAM searches were performed; ? Modify written procurement policies and procedures to incorporate the aforementioned expectation and requirement; ? Communicate the requirement and policy/procedure change to the Division of Police in writing; and ? Develop, document, and implement procedures to ensure provisions pertaining to the Never Contract with the Enemy provisions applicable to federal grants are adhered to.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring

Other Findings in this Audit

  • 51834 2022-002
    Material Weakness
  • 51835 2022-002
    Material Weakness
  • 51836 2022-002
    Material Weakness
  • 51837 2022-002
    Material Weakness
  • 51838 2022-002
    Material Weakness
  • 51839 2022-002
    Material Weakness
  • 51840 2022-002
    Material Weakness
  • 51841 2022-002
    Material Weakness
  • 51842 2022-002
    Material Weakness
  • 628276 2022-002
    Material Weakness
  • 628277 2022-002
    Material Weakness
  • 628278 2022-002
    Material Weakness
  • 628279 2022-002
    Material Weakness
  • 628280 2022-002
    Material Weakness
  • 628281 2022-002
    Material Weakness
  • 628282 2022-002
    Material Weakness
  • 628283 2022-002
    Material Weakness
  • 628284 2022-002
    Material Weakness
  • 628285 2022-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.778 Medical Assistance Program $114.20M
66.458 Capitalization Grants for Clean Water State Revolving Funds $58.22M
21.027 Coronavirus State and Local Fiscal Recovery Funds $21.99M
21.023 Emergency Rental Assistance Program $17.89M
66.468 Capitalization Grants for Drinking Water State Revolving Funds $10.16M
20.205 Highway Planning and Construction $6.57M
16.922 Equitable Sharing Program $3.26M
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $2.33M
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $1.35M
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $1.06M
14.900 Lead-Based Paint Hazard Control in Privately-Owned Housing $950,727
93.053 Special Programs for the Aging_title Iii, Part C_nutrition Services $949,736
10.559 Summer Food Service Program for Children (smp) $757,551
14.218 Community Development Block Grants/entitlement Grants $729,549
93.926 Healthy Start Initiative $702,961
14.241 Housing Opportunities for Persons with Aids $548,347
93.145 Aids Education and Training Centers $467,591
93.217 Family Planning_services $366,692
14.239 Home Investment Partnerships Program $345,148
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $338,040
14.191 Multifamily Housing Services Coordinator $309,221
16.754 Harold Rogers Prescription Drug Monitoring Program $263,553
14.231 Emergency Solutions Grant Program $261,902
93.069 Public Health Emergency Preparedness $260,624
16.838 Comprehensive Opioid Abuse Site-Based Program $252,121
10.576 Senior Farmers Market Nutrition Program $247,046
16.034 Coronavirus Emergency Supplemental Funding Program $205,122
16.585 Drug Court Discretionary Grant Program $196,539
97.044 Assistance to Firefighters Grant $187,175
93.268 Immunization Cooperative Agreements $120,149
93.136 Injury Prevention and Control Research and State and Community Based Programs $118,205
93.994 Maternal and Child Health Services Block Grant to the States $111,464
21.016 Equitable Sharing $102,098
93.959 Block Grants for Prevention and Treatment of Substance Abuse $101,675
93.788 Opioid Str $92,316
93.940 Hiv Prevention Activities_health Department Based $79,675
93.137 Community Programs to Improve Minority Health Grant Program $78,193
93.071 Medicare Enrollment Assistance Program $72,625
93.558 Temporary Assistance for Needy Families $69,980
16.745 Criminal and Juvenile Justice and Mental Health Collaboration Program $61,948
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $60,000
93.914 Hiv Emergency Relief Project Grants $52,032
93.041 Special Programs for the Aging_title Vii, Chapter 3_programs for Prevention of Elder Abuse, Neglect, and Exploitation $49,262
16.588 Violence Against Women Formula Grants $47,239
97.012 Boating Safety Financial Assistance $46,553
20.616 National Priority Safety Programs $44,617
16.575 Crime Victim Assistance $44,286
16.590 Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program $43,027
14.913 Healthy Homes Production Program $38,644
93.568 Low-Income Home Energy Assistance $32,733
16.320 Services for Trafficking Victims $31,428
93.991 Preventive Health and Health Services Block Grant $28,978
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $25,755
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nations Health $25,000
16.726 Juvenile Mentoring Program $24,368
93.516 Affordable Care Act (aca) Public Health Training Centers Program $20,905
93.478 Preventing Maternal Deaths: Supporting Maternal Mortality Review Committees (b) $20,000
93.855 Allergy, Immunology and Transplantation Research $18,672
93.387 National and State Tobacco Control Program (b) $17,500
16.742 Paul Coverdell Forensic Sciences Improvement Grant Program $16,135
16.738 Edward Byrne Memorial Justice Assistance Grant Program $14,943
93.052 National Family Caregiver Support, Title Iii, Part E $11,250
93.958 Block Grants for Community Mental Health Services $3,942
93.074 Hospital Preparedness Program (hpp) and Public Health Emergency Preparedness (phep) Aligned Cooperative Agreements $3,396
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $2,409
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $2,291
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $1,806
20.600 State and Community Highway Safety $1,141
21.019 Coronavirus Relief Fund $445
16.741 Dna Backlog Reduction Program $173
93.977 Preventive Health Services_sexually Transmitted Diseases Control Grants $15