Finding 555817 (2024-001)

2024-001 U.S. Environmental Protection Agency/ U.S. Department of Treasury Federal Financial Assistance Listing 66.458 / 21.027 Capitalization Grants for Clean Water State Revolving Funds/ COVID-19 Coronavirus State and Local Fiscal Recovery Funds Procurement Suspension and Debarment Material Weakness in Internal Control Criteria: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: During our testing over procurement, based upon discussions with management, the City had performed suspension and debarment check prior to entering into the transaction; however, the documentation was not retained, and we were unable to verify this during our testing. Cause: Documentation was not retained to prove the City verified the vendor was not suspended or debarred prior to entering into the transaction. Effect: We were not able to verify suspension and debarment was verified by the City prior to entering into the transaction. Questioned Costs: None reported. Context/Sampling: Nonstatistical sample was used. Repeat Finding from the Prior Year: No Recommendation: As part of the procurement process, we recommend the City retain documentation verifying suspension and debarment was verified prior to entering into transactions required to follow the procurement rules under 2 CFR 200, Section 200.214 Suspension and Debarment. Viewed of Responsible Officials: Management agrees with the finding.