Finding 554293 (2024-003)

Significant Deficiency

Requirement

Questioned Costs

Year

2024

Accepted

2025-04-07

Audit: 352895

Organization: City of Satellite Beach (FL)

Auditor: Carr Riggs & Ingram LLC

AI Summary

Core Issue: Vendors were not checked for suspension or debarment before contracts were signed, violating federal requirements.
Impacted Requirements: 2 CFR 200.303 mandates effective internal controls, and 2 CFR 180 prohibits contracts with suspended or debarred entities.
Recommended Follow-Up: Implement a consistent process to verify vendor status before contracting to avoid potential issues with questioned costs.

Finding Text

2024-003 Suspension and Debarment 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds US Department of Treasury Passed through Florida Department of Environmental Protection 2024 Funding Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. 2 CFR 180 prohibits entering into covered transactions with entities that have been suspended or debarred from Federal funding. Documentation of the check for suspension or debarment needs to be retained. Condition: Review of checking for suspension and debarment was not done prior to contracting with the vendor. Cause of condition: There is no consistent process to ensure that the vendors were not suspended and debarred, prior to procuring goods or services. Perspective (context): For 29 of the 37 invoices selected, suspension and debarment was not checked prior to paying the vendor. Potential effect of condition: Good or services could be contracted with a suspended or debarred vendor, creating questioned costs. Questioned Costs: None. Recommendation: Review of vendors suspension and debarment should be done prior to entering into a contract or obtaining good or services. Management’s response on planned corrective action: The City has worked and will continue to work diligently on this issue. The City is working to ensure that all vendors are properly reviewed for suspension and debarment on an ongoing basis.

Corrective Action Plan

Recommendation: Review of vendors suspension and debarment should be done prior to entering into a contract or obtaining goods or services. Management Response: The City has worked and will continue to work diligently on this issue. The City is working to ensure that all vendors are properly reviewed for suspension and debarment on an ongoing basis. Responsible Parties: Brittany Retherford, City Manager, Nick Walsh, Comptroller, and Mindy Brown, Assistant Comptroller Anticipated Completion Date: September 30, 2025

Other Findings in this Audit

554289 2024-002

Significant Deficiency
554290 2024-002

Significant Deficiency
554291 2024-002

Significant Deficiency
554292 2024-002

Significant Deficiency
554294 2024-003

Significant Deficiency
554295 2024-003

Significant Deficiency
554296 2024-003

Significant Deficiency
1130731 2024-002

Significant Deficiency
1130732 2024-002

Significant Deficiency
1130733 2024-002

Significant Deficiency
1130734 2024-002

Significant Deficiency
1130735 2024-003

Significant Deficiency
1130736 2024-003

Significant Deficiency
1130737 2024-003

Significant Deficiency
1130738 2024-003

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
21.027	Covid-19 Coronavirus State and Local Fiscal Recovery Funds	$191,792
10.727	Inflation Reduction Act Urban & Community Forestry Program	$83,900
97.036	Disaster Grants - Public Assistance (presidentially Declared Disasters)	$9,921