Finding Text
2022-006 – Procurement, Suspension and Debarment (Repeat Finding) Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Procurement, Suspension and Debarment). Program. Coronavirus State and Local Fiscal Recovery Funds; U.S. Department of Treasury; ALN 21.027; Award Numbers GJM5M2C6X6G5 and SLFRP0127. Criteria. A recipient of federal awards is required to determine that vendors being paid with federal funds are not suspended or debarred from doing business with the City. Such procedures are required whenever the amount disbursed to a single vendor in a given year is expected to be at least $25,000. Condition. The City did not verify that any of their vendors over $25,000 were not suspended or debarred from doing business with the City. Cause. This condition was caused by management oversight in knowing the federal compliance requirements of the grant. Effect. As a result of this condition, the City was exposed to the risk that disbursements of federal awards would be made to vendors suspended or debarred by the federal government. Questioned Costs. No costs have been questioned as a result of this finding, inasmuch as no suspended or debarred transactions were not suspended or debarred. Recommendation. We recommend that the City verify that all of their vendors over $25,000 spent with federal funds were not suspended or debarred. View of Responsible Officials. The City agrees with the audit finding. A corrective action plan has been prepared.