Finding Text
Assistance Listing Program Title and Number- Child Nutrition Cluster 10.555/10.559
Federal Agency- Department of Agriculture
Pass-through Entity- N/A
Award year: 2022
Criteria or specific requirement:
2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards, (Uniform Guidance) requires compliance with provisions
of procurement, suspension, and debarment.
Non-federal entities are prohibited from contracting with or making subawards under
covered transactions to parties that are suspended or debarred. When a non-federal entity
enters into a covered transaction with an entity at a lower tier, the nonfederal entity must
verify that the entity, as defined in 2 CFR section 180.995 and agency adopting
regulations, is not suspended or debarred or otherwise excluded from participating in the
transaction.
Condition:
During our audit, we noted that the City did not have documentation to support that it
verified vendors selected for testing against the SAM to ensure that they were not
suspended or debarred from federally funded purchases.
Cause:
While the City has a formal policy requiring the purchasing department to perform
verification of suspension or debarment over vendors that the City enters into contracts
with for federally funded projects, it does not maintain formal documentation that this
procedure occurred.
Effect:
Without documented evidence of verifying whether the City was followings its policy, the
City could not provide evidence of this control was being completed for federally funded
projects. There were no standard forms or templates that were used to document
verification that parties are not suspended or debarred.
Prevalence:
There was no documentation available for 1 out of 3 selections tested. However, none of
the vendors selected for testing were suspended or debarred.
Questioned Cost:
None
Repeat Finding:
No
Recommendation:
We recommend that the City implement a policy to formally document the procedures they
are performing to demonstrate compliance with the Single Audit Act.
Views of Responsible Officials:
Management agrees with the finding.