Finding 605308 (2022-001)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 25588
Organization: City of Concord (CA)

AI Summary

  • Core Issue: The City failed to include necessary terms regarding debarment and suspension in contracts and did not verify contractor eligibility before agreements.
  • Impacted Requirements: This violates the award terms of the Coronavirus State and Local Fiscal Recovery Funds and OMB guidelines on debarment and suspension.
  • Recommended Follow-Up: The City should establish procedures to ensure compliance with debarment and suspension requirements for all future contracts and subawards.

Finding Text

Finding Reference Number: SA2022-001 Suspension and Debarment Documentation for Contracts and Subcontracts Assistance Listing Number: 21.027 Assistance Listing Title: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Name of Federal Agency: Department of the Treasury Federal Award Identification Number: SLFRP0424 Criteria: The award terms and conditions of the Coronavirus State and Local Fiscal Recovery Funds agreement with the Department of the Treasury requires that the City comply with OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement), 2 C.F.R. Part 180, including the requirement to include a term or condition in all lower tier covered transactions (contracts and subcontracts described in 2 C.F.R. Part 180, subpart B) that the award is subject to 2 C.F.R. Part 180 and Treasury?s implementing regulation at 31 C.F.R. Part 19. In addition, the OMB Compliance Supplement for the Program requires that prior to entering into subawards and contracts with award funds, recipients must verify that such contractors and subrecipients are not suspended, debarred, or otherwise excluded pursuant to 31 CFR section 19.300. Condition: We selected two contracts for testing and noted that City did not include a term or condition related to compliance with debarment and suspension compliance provisions and we understand that the City did not verify the contractors and subrecipient were not suspended, debarred, or otherwise excluded prior to entering into the agreements. We did note that as of March 28, 2023, the two vendors were not included on the exclusions list on SAM.gov. Cause: We understand that due to turnover in staffing, the City was not able to provide support showing that the City was in compliance with the requirement to verify the status of contractors prior to entering into agreements with the entities. Effect: The City is not in compliance with the award terms and conditions and the OMB Compliance Supplement requirements of the Coronavirus State and Local Fiscal Recovery Funds program. Recommendation: The City should develop procedures to ensure compliance with debarment and suspension provisions of the grant award terms and conditions and the OMB Compliance Supplement of the Coronavirus State and Local Fiscal Recovery Funds program. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring

Other Findings in this Audit

  • 28866 2022-001
    Significant Deficiency
  • 28867 2022-002
    Significant Deficiency
  • 28868 2022-003
    Significant Deficiency
  • 28869 2022-002
    Significant Deficiency
  • 28870 2022-003
    Significant Deficiency
  • 605309 2022-002
    Significant Deficiency
  • 605310 2022-003
    Significant Deficiency
  • 605311 2022-002
    Significant Deficiency
  • 605312 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $5.67M
14.218 Community Development Block Grants/entitlement Grants $1.39M
20.205 Highway Planning and Construction $1.06M
14.218 Covid-19 - Community Block Developement $138,083
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $54,142
20.600 State and Community Highway Safety $20,522
16.922 Equitable Sharing Program $4,879
16.738 Edward Byrne Memorial Justice Assistance Grant Program $3,316