Finding 578959 (2021-003)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2021
Accepted
2023-11-28
Audit: 4283
Organization: City of Muskegon Heights (MI)

AI Summary

  • Issue: The City failed to document vendor suspension and debarment status for one federally funded purchase.
  • Requirement: Vendors must be checked against SAM.gov for suspension and debarment before purchases using Federal funds.
  • Follow-up: The City should create and implement policies to ensure proper documentation is obtained for all relevant vendor purchases.

Finding Text

Condition and Criteria: The City is required to document vendor certification of suspension and debarment status on the SAM.gov website before applicable purchases. Cause: The City makes occasional purchases from vendors utilizing Federal funds. Context: Of the 13 transactions tested, one required consideratoin and dcumentation of suspension and debarment. Effect: The City made a federally funded purchase from a vendor without consideration of vendor suspension and debarment. This vendor is not suspended or debarred per review of the SAM.gov website. Recommendation: The City should develop policies and procedures to require documentation of vendor certification of suspension and debarment status before applicable purchases. Management Response: Management will develop policies and procedures to require documentation of vendor suspension and debarment status for all federally funded purchases or contracts.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 2517 2021-003
    Material Weakness
  • 2518 2021-004
    Material Weakness
  • 578960 2021-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Fund $1.60M
14.218 Community Development Block Grants/entitlement Grants $153,847
16.738 Byrne Memorial Justice Assistance Grant $17,313
95.001 High Intensity Drug Trafficking Areas Program $3,736