Finding Text
Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, the City was unable to provide evidence that suspension and debarment verification was performed. Questioned Costs: None. Context: There were five vendors subject to suspension and debarment testing for FY 21-22. While the City did not perform the suspension and debarment verification for these vendors tested, the vendors were not on the suspended and debarred listing. Cause: Procedures were not in place to retain evidence of debarment status check. Effect: The city is unable to prove that internal control procedures over suspension and debarment compliance were performed. Recommendation: We recommend that management review is procedures for retaining evidence debarment status being checked prior to entering into purchase agreements.