Finding Text
Federal Program, Assistance Listing # and Year, Federal Agency, Pass-Through Entity:
Choice Neighborhoods Implementation Grants, Assistance Listing #14.889, 2024, U.S. Department of Housing
and Urban Development, Office of Community Planning and Development.
COVID-19 - Coronavirus State and Local Fiscal Recovery Fund, Assistance Listing #21.027, 2021, U.S.
Department of Treasury.
Criteria or Specific Requirement: 2 CFR 200.303 requires the entity to establish and maintain effective
internal controls over compliance with respect to federal awards and Section 1111(b)(2)(A) of the ESEA for
compliance accountability. Proper internal controls require supporting documentation to be retained as
evidence for effectiveness of the controls in place. Also, 2 CFR 180 prohibits non-Federal entities from
entering into covered transactions with suspended or debarred entities.’t t
Condition: The City failed to establish and maintain effective controls over suspension and debarment. The
City failed to provide evidence the City verified vendor’s suspension and debarment status prior to
procurement.
Effect: The City of Shreveport risks not being in compliance with their federal funding procurement
compliance requirements.
Cause: Purchasing Department/Management failed to follow City Procurement Policy and Procedure when
contracting vendors.
Questioned Costs: Not applicable
Context: The issue was identified in a sample of 25 disbursements for each major program.
Recommendation: We recommend the City follows their Procurement Policy when ensuring vendor status
prior to contracting services.
Views of responsible officials and corrective action plan: The City will strengthen the controls over the
vendor debarment and suspension status review during the procurement process with the following steps:
(1) the Finance Purchasing Division will communicate with the City Departments receiving federal awards to
ensure the contracts are routed through Purchasing for verification of debarment and suspension
compliance; (2) the Finance Purchasing Division will run a contract audit report periodically to review the
Department contract documents for compliance; and (3) throughout the year, the Finance Department will
review the grant expenditures for vendor activity not meeting requirements.