Finding 539399 (2024-001)

Significant Deficiency Repeat Finding

Requirement

Questioned Costs

Year

2024

Accepted

2025-03-28

Audit: 349946

Organization: City of Colton (CA)

Auditor: Cliftonlarsonallen LLP

AI Summary

Issue: The City failed to show proof that it checked if the vendor was suspended or debarred before the transaction.
Trend: This problem was noted last year, and while some corrections were made, there’s no evidence of improvement in the current year.
Follow-up: Ensure that proper vendor verification processes are established and documented for future transactions.

Finding Text

The City was not able to provide supporting documentation that the City verified the vendor was not suspended or debarred prior to entering the transaction. This finding was included in the prior year and corrections were made by the City; however, there were not sufficient transactions remaining in the current fiscal year to provide evidence that condition has been corrected.

Corrective Action Plan

The City took corrective action to address this area of deficiency in March 2024. The original audit finding, 2023-001, was communicated in March 2024. Immediately following this notification, the City implemented corrective actions by retroactively verifying the suspension and debarment list for all open purchase orders and ensuring prospective compliance. The audit sampling for the fiscal year ending June 30, 2024, included transactions that occurred prior to the March 2024 communication of the finding. For all sampled transactions dated after the finding was communicated to the City, verification against the suspension and debarment list occurred prior to transaction completion. However, finding 2024-001 for the current audit year includes transactions occurring during the fiscal year ended June 30, 2024, for which the City performed the suspension and debarment verification retroactively, as they predated the implementation of the corrective measures.

Other Findings in this Audit

539400 2024-001

Significant Deficiency Repeat
1115841 2024-001

Significant Deficiency Repeat
1115842 2024-001

Significant Deficiency Repeat

Programs in Audit

ALN	Program Name	Expenditures
93.575	Child Care and Development Block Grant	$486,460
20.600	State and Community Highway Safety	$119,106
93.596	Child Care Mandatory and Matching Funds of the Child Care and Development Fund	$61,102
20.608	Minimum Penalties for Repeat Offenders for Driving While Intoxicated	$54,258
21.027	Coronavirus State and Local Fiscal Recovery Funds	$52,498
14.218	Community Development Block Grants/entitlement Grants	$25,188
97.067	Homeland Security Grant Program	$21,542
16.738	Edward Byrne Memorial Justice Assistance Grant Program	$11,960
20.205	Highway Planning and Construction	$319