Finding Text
Finding: 2024-001 - Procurement and Suspension and Debarment, Coronavirus State and Local Fiscal Recovery Funds AL# 21.027. Criteria: Federal grant provisions that subrecipients verify vendors are not suspended or debarred from doing business with the federal government prior to contracting with those vendors for federal award programs. Condition: For the three contracts tested, the Town did not verify vendors were not suspended or debarred prior to contracting with them. Cause: Town personnel were unfamiliar with this procurement requirements of the grant. Effect or Potential Effect: The internal controls over procurement and suspension and debarment were not operating effectively. However, the contractors were not suspended or debarred from doing business with the federal government. Questioned Cost: None. Recommendations: Prior to contracting with a vendor, the Town should ensure the contractor is not suspended or debarred from receiving federal funds and document the procedures that were performed in order to verify this. Management Response: Management agrees with this finding, and in the future will ensure a contractor is not suspended or debarred prior to entering into the contract with them.