FAC Explorer

Finding 5528 (2023-001)

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Requirement
I
Questioned Costs
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Year
2023
Accepted
2023-12-19
Audit: 7314
Organization: City of Lowell (MI)
Auditor: Vredeveld Haefner LLC

AI Summary

  • Core Issue: The City did not document vendor suspension and debarment status before entering into a contract.
  • Impacted Requirements: Current policies lack specific actions for documenting compliance with vendor certification.
  • Recommended Follow-Up: Update policies to ensure documentation of vendor status is required before purchases.

Finding Text

Condition and Criteria: The City's written policies and procedures provide for vendor certification of suspension and debarment status or City review of vendor suspension and debarment status on the SAM.gov website before applicable purchases. Cause: The City policy for compliance with suspension and debarment requirements did not provide for specific action necessary to document compliance. Effect: The City entered into a contract with a vendor before the vendor suspension and debarment status was documented. This vendor is not suspended or debarred per review of the SAM.gov website. Recommendation: The City should modify current policies and procedures to require documentation of vendor certification of suspension and debarment status or City review of vendor suspension and debarment status on the SAM.gov website before applicable purchases. Management Response: Management will modify policies and procedures to require document of vendor suspension and debarment status for all federally funded purchases or contracts.

Corrective Action Plan

The City of Lowell agrees with the finding identified and respectfully submits the following Corrective Action Plan for the year ending June 30, 2023. The City did not document the part of the policy that is needed to show that the vendor was not suspended or debarred from the Federal Government through SAM.gov before the contract was entered into. The City has discussed the procedure of policy and has identified that the review and documentation on the selected vendor needs to happen prior to approval of the contract by City Council. It will be the responsibility of the city treasurer and the city manager to adhere to the policy to document the review of the vendor through SAM.gov. if anyone has questions about the plan, please contact the city manager or city treasurer at 616-897-8457.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.760 Water and Wastewater Disposal Systems Bonds $571,091
21.027 Coronavirus Local Fiscal Recovery Fund $234,721