Finding 61602 (2022-001)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-03-29
Audit: 56768
Organization: City of Santa Ana (CA)

AI Summary

  • Core Issue: The City failed to provide proof that it checked vendors for suspension or debarment before transactions.
  • Impacted Requirements: This finding relates to compliance with 2 CFR Part 200, which mandates internal controls for suspension and debarment verification.
  • Recommended Follow-Up: Implement stronger documentation practices to ensure vendor checks are performed and recorded before contract agreements.

Finding Text

2022-001 - Suspension and Debarment Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: March 3, 2021, through December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance 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 suspension and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: The City was not able to provide supporting documentation that the City verified the vendor was not suspended or debarred prior to entering the transaction. Questioned Costs: None. Context: There were twenty-five vendors during FY 21-22 that were a covered transaction for this program. Cause: The City did not maintain supporting documentation that the verification of suspension or debarment was performed prior to entering into a contract for three of the seven samples tested. Effect: The auditor noted no instances of noncompliance with the provisions of suspension, and debarment; however, we were not able to verify that the City followed their internal controls to ensure the vendor was not suspended or debarred prior to entering the transaction.

Corrective Action Plan

Recommendation: We recommend the City implement procedures to ensure that verification documentation for suspension and debarment is maintained to support the City's internal control over compliance. Views of Responsible Officials: There is no disagreement with the audit finding. The City?s Purchasing Policies & Procedures require the grant managing departments to adhere to the Uniform Guidance requirements and maintain procurement documentation related to Federal grants including suspension and debarment. City staff assigned to manage or support federal grant-funded projects will check sam.gov to ensure their vendors are not excluded parties prior to selecting vendors and maintain supporting documentation.

Categories

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Significant Deficiency

Other Findings in this Audit

  • 638044 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $44.20M
21.027 Coronavirus State and Local Fiscal Recovery Funds $12.23M
14.231 Emergency Solutions Grant Program $7.03M
14.218 Community Development Block Grants/entitlement Grants $5.69M
14.879 Mainstream Vouchers $2.28M
14.239 Home Investment Partnerships Program $2.15M
21.023 Emergency Rental Assistance Program $1.87M
97.067 Homeland Security Grant Program $1.68M
17.259 Wia Youth Activities $836,319
16.710 Public Safety Partnership and Community Policing Grants $731,634
59.075 Shuttered Venue Operators Grant Program $689,120
20.600 State and Community Highway Safety $656,230
93.558 Temporary Assistance for Needy Families $624,147
16.922 Equitable Sharing Program $430,124
93.137 Community Programs to Improve Minority Health Grant Program $137,782
16.738 Edward Byrne Memorial Justice Assistance Grant Program $89,217
14.896 Family Self-Sufficiency Program $87,858
16.016 Culturally and Linguistically Specific Services Program $78,240
97.042 Emergency Management Performance Grants $48,338
16.835 Body Worn Camera Policy and Implementation $28,598
45.310 Grants to States $16,150
17.277 Workforce Investment Act (wia) National Emergency Grants $15,823
17.278 Wia Dislocated Worker Formula Grants $15,000
20.205 Highway Planning and Construction $6,643
17.258 Wia Adult Program $5,697
14.256 Arra- Neighborhood Stabilization Program 2 $17