Finding Text
Finding Number: 2024‐003
Repeat Finding: No
Program Name/Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Fund
Assistance Listing Number: 21.207
Federal Agency: Department of Treasury
Federal Award Number: N/A
Pass‐Through Agency: Arizona Governor's Office
Questioned Costs: N/A
Type of Finding: Noncompliance, Significant Deficiency
Compliance Requirement: Procurement
Criteria
Non‐federal entities are prohibited from contracting with or making sub awards under covered
transactions to parties that are suspended or debarred. “Covered transactions” include those
procurement contracts for goods and services awarded under a non‐procurement transaction that
are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR §180.220.
Condition
Verification of suspension and debarment was not performed for all vendors with whom the City
spent at least $25,000 using federal grant monies.
Cause
The City does not have a process in place to verify vendors for suspension and debarment.
Effect
The City was not in compliance with federal regulations and guidelines related to suspension and
debarment.
Context
For the two vendors that the City spent over $25,000 of federal monies with, suspension and
debarment verification was not completed. However the vendors were not suspended or debarred.
The sample was not intended to be, and was not, a statistically valid sample.
Recommendation
The City should design and implement a process for ensuring that vendors with whom the City spends
more than $25,000 of federal monies with are not suspended or debarred.
Views of Responsible Officials
See Corrective Action Plan.