FAC Explorer

Finding 624759 (2022-004)

Significant Deficiency Repeat Finding
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-01-31
Audit: 48606
Organization: City of Albuquerque (NM)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The City did not verify that contractors and subrecipients were not suspended or debarred, violating federal regulations.
  • Impacted Requirements: Compliance with 31 CFR section 19.300, which mandates checks against the EPLS or SAM.gov before entering contracts.
  • Recommended Follow-Up: Ensure all departments adhere to suspension and debarment procedures; implement the new Contracts Life Management system by June 2023.

Finding Text

2022 ? 004 (Previously 2021-012) Suspension and Debarment (Significant Deficiency and Noncompliance) Federal Agency: U.S. Department of Treasury U.S. Department of Transportation Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Federal Transit Cluster Assistance Listing Number: 21.027, Multiple Federal Award Identification Number and Year: ALN 21.027 ? Pub. L. No. 117-2- 2021; ALN Multiple ? 1523-2020-2 Award Period: ALN 21.027 ? 5/10/2021 - 12/31/2026 ALN Multiple ? 7/1/2019 ? 12/31/2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: According to the Program Compliance Supplement 2022 Part 4, 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. Per 31 CFR Part 19, when you enter into a covered transaction with another person at the next lower tier, you must verify that the person with whom you intend to do business is not excluded or disqualified. You do this by: (a) Checking the EPLS; or (b) Collecting a certification from that person if allowed by this rule; or (c) Adding a clause or condition to the covered transaction with that person. Condition: During our testing, it was noted that the City did not follow federal suspension and debarment regulation nor its federal suspension and debarment procedures. Questioned costs: None Context: During single audit testwork over reporting, the following issues were noted which are detailed by ALN Number. ALN 21.027 ? For 1 of 2 procurement transactions, the City did not use one of the three ways a non-federal entity may accomplish the verification. The City included the suspension and debarment language on the back of the purchase order. 2022 ? 004 (Previously 2021-012) Suspension and Debarment (Significant Deficiency and Noncompliance) (Continued) ALN 21.027 (continued) ? For 1 of 3 subawards, the City did not perform searches in sam.gov with all potential entity names. The entity name used by the City in the search is not the entity name used in sam.gov. ? For 2 of 2 procurement transactions and 3 of 3 subawards, the City did not perform an exclusion check on sam.gov. This is not in accordance with the City's suspension and debarment procedures which is a www.sam.gov print screen of vendor (debarment check). Also, the City did not provide us with the SAMS (System for Award Management) form required as part of the requisition process. No evidence of review and approval of suspension and debarment verification checks. ALN Multiple ? For 1 of 1 procurement transactions, the City did not perform an exclusion check on sam.gov. This is not in accordance with the City's suspension and debarment procedures which is a www.sam.gov print screen of vendor (debarment check). Also, the City did not provide us with the SAMS (System for Award Management) form required as part of the requisition process. No evidence of review and approval of suspension and debarment verification checks. Management?s Progress for Repeat Findings: The 2021 finding was specific to one department and those controls were put in place. During 2022 other departments were not following suspension and debarment procedures. The 2022 management response will facilitate all City departments to follow the procedures. Cause: The City failed to follow suspension and debarment procedures. Repeat Finding: 2021-012 Effect: The auditor noted instances of noncompliance. Noncompliance results in entering into covered transactions with federally suspended and debarred entities. Recommendation: We recommend the City follow its procedures to ensure compliance with federal suspension and debarment regulation. Management Response: Management agrees with the finding. The City is implementing a new system, Contracts Life Management (CLM) that will go live in March 2023. We will add an intake form under the federal funding section. The intake form will include the question ?Is the Supplier suspended or debarred?? If the answer is yes, the contract process will not be allowed to proceed. Timeline and Responsible Position: June 2023 ? Chief Procurement Officer

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring

Other Findings in this Audit

  • 43122 2022-009
    Significant Deficiency
  • 43123 2022-009
    Significant Deficiency
  • 43124 2022-005
    Significant Deficiency
  • 43125 2022-009
    Significant Deficiency
  • 43126 2022-009
    Significant Deficiency
  • 43127 2022-009
    Significant Deficiency
  • 43128 2022-005
    Significant Deficiency
  • 43129 2022-009
    Significant Deficiency
  • 43130 2022-009
    Significant Deficiency
  • 43131 2022-009
    Significant Deficiency
  • 43132 2022-009
    Significant Deficiency
  • 43133 2022-009
    Significant Deficiency
  • 43134 2022-009
    Significant Deficiency
  • 43135 2022-009
    Significant Deficiency
  • 43136 2022-005
    Significant Deficiency
  • 48311 2022-004
    Significant Deficiency Repeat
  • 48312 2022-006
    Significant Deficiency Repeat
  • 48313 2022-006
    Significant Deficiency Repeat
  • 48314 2022-006
    Significant Deficiency Repeat
  • 48315 2022-006
    Significant Deficiency Repeat
  • 48316 2022-008
    Significant Deficiency
  • 48317 2022-004
    Significant Deficiency Repeat
  • 48318 2022-005
    Significant Deficiency
  • 48319 2022-006
    Significant Deficiency Repeat
  • 48320 2022-007
    Significant Deficiency Repeat
  • 48321 2022-008
    Significant Deficiency
  • 619564 2022-009
    Significant Deficiency
  • 619565 2022-009
    Significant Deficiency
  • 619566 2022-005
    Significant Deficiency
  • 619567 2022-009
    Significant Deficiency
  • 619568 2022-009
    Significant Deficiency
  • 619569 2022-009
    Significant Deficiency
  • 619570 2022-005
    Significant Deficiency
  • 619571 2022-009
    Significant Deficiency
  • 619572 2022-009
    Significant Deficiency
  • 619573 2022-009
    Significant Deficiency
  • 619574 2022-009
    Significant Deficiency
  • 619575 2022-009
    Significant Deficiency
  • 619576 2022-009
    Significant Deficiency
  • 619577 2022-009
    Significant Deficiency
  • 619578 2022-005
    Significant Deficiency
  • 624753 2022-004
    Significant Deficiency Repeat
  • 624754 2022-006
    Significant Deficiency Repeat
  • 624755 2022-006
    Significant Deficiency Repeat
  • 624756 2022-006
    Significant Deficiency Repeat
  • 624757 2022-006
    Significant Deficiency Repeat
  • 624758 2022-008
    Significant Deficiency
  • 624760 2022-005
    Significant Deficiency
  • 624761 2022-006
    Significant Deficiency Repeat
  • 624762 2022-007
    Significant Deficiency Repeat
  • 624763 2022-008
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $54.19M
21.023 Emergency Rental Assistance Program $19.60M
20.205 Highway Planning and Construction $4.46M
20.507 Federal Transit_formula Grants $2.99M
21.019 Coronavirus Relief Fund $2.39M
14.239 Home Investment Partnerships Program $2.34M
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $2.17M
11.307 Economic Adjustment Assistance $1.20M
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $1.10M
93.575 Child Care and Development Block Grant $1.02M
93.137 Community Programs to Improve Minority Health Grant Program $1.01M
97.U01 Tsa Law Enforcement Officer Reimbursement Program $682,666
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $673,670
20.106 Airport Improvement Program $637,381
10.559 Summer Food Service Program for Children $537,363
16.034 Coronavirus Emergency Supplemental Funding Program $509,513
97.067 Homeland Security Grant Program $437,844
97.083 Staffing for Adequate Fire and Emergency Response (safer) $419,435
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $396,423
93.997 Assisted Outpatient Treatment $305,689
93.052 National Family Caregiver Support, Title Iii, Part E $270,329
66.001 Air Pollution Control Program Support $250,473
97.072 National Explosives Detection Canine Team Program $211,723
93.053 Nutrition Services Incentive Program $181,544
97.U02 Tsa Law Enforcement Officer Reimbursement Program $153,300
16.738 Edward Byrne Memorial Justice Assistance Grant Program $130,768
94.011 Foster Grandparent Program $123,280
97.024 Emergency Food and Shelter National Board Program $110,839
66.034 Surveys, Studies, Research, Investigations, Demonstrations, and Special Purpose Activities Relating to the Clean Air Act $101,680
11.805 Mbda Business Center $99,476
97.042 Emergency Management Performance Grants $97,120
16.833 National Sexual Assault Kit Initiative $86,265
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $77,339
16.741 Dna Backlog Reduction Program $70,122
16.838 Comprehensive Opioid Abuse Site-Based Program $64,373
97.039 Hazard Mitigation Grant $60,673
94.016 Senior Companion Program $57,073
16.575 Crime Victim Assistance $56,207
20.215 Highway Training and Education $56,203
10.558 Child and Adult Care Food Program $55,648
93.600 Head Start $52,964
95.001 High Intensity Drug Trafficking Areas Program $52,821
94.002 Retired and Senior Volunteer Program $51,949
14.231 Emergency Solutions Grant Program $44,459
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $44,105
16.001 Law Enforcement Assistance_narcotics and Dangerous Drugs_laboratory Analysis $42,422
20.500 Federal Transit_capital Investment Grants $42,070
20.600 State and Community Highway Safety $38,965
14.267 Continuum of Care Program $30,132
16.734 Special Data Collections and Statistical Studies $26,018
16.710 Public Safety Partnership and Community Policing Grants $17,942
94.013 Volunteers in Service to America $15,000
16.742 Paul Coverdell Forensic Sciences Improvement Grant Program $10,015
81.106 Transport of Transuranic Wastes to the Waste Isolation Pilot Plant: States and Tribal Concerns, Proposed Solutions $7,000
93.074 Hospital Preparedness Program (hpp) and Public Health Emergency Preparedness (phep) Aligned Cooperative Agreements $6,706
66.717 Source Reduction Assistance $4,311
15.904 Historic Preservation Fund Grants-in-Aid $3,022
93.213 Research and Training in Complementary and Integrative Health $3,011
14.218 Community Development Block Grants/entitlement Grants $2,483
16.301 Law Enforcement Assistance_fbi Crime Laboratory Support $486
16.588 Violence Against Women Formula Grants $185