Finding 946435 (2023-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-02-21

AI Summary

  • Core Issue: The City failed to maintain documentation proving contractors are not suspended or debarred, violating federal requirements.
  • Impacted Requirements: Non-compliance with CFR 536.270-4 could jeopardize future grant funding.
  • Recommended Follow-Up: Implement a tracking system to ensure ongoing compliance with contractor suspension and debarment documentation.

Finding Text

Federal Programs: COVID-19 Coronavirus State and Local fiscal Recovery Funds and Highway Planning and Construction Cluster Assistance Listing Numbers 21.027 and 20.205. Criteria: Per CFR 536.270-4 – Contractors are to not be listed in the System for Award Management Exclusions. Condition: During the audit, we noted that documentation of contractor non-suspension and debarment was not maintained. Cause: The City did not have controls in place to ensure maintenance of proper documentation of contractor non-suspension and debarment. Effect: The City could jeopardize future grant funding due to program noncompliance. Questioned Costs: None. Context/Sampling: For the COVID-19 Coronavirus State and Local fiscal Recovery Funds, a nonstatistical sample of four out of seven contracts were selected for testing, which accounted for $1,503,031 of federal program expenditures. For Highway Planning and Construction Cluster, there was only one contract entered into with program funding for the year under audit. The contract was selected for testing and accounted for $709,775 of federal program expenditures. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend the City implement a tracking system to remind staff of suspension and debarment requirements. View of Responsible Officials: See the City’s Corrective Action Plan

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 369992 2023-001
    Significant Deficiency
  • 369993 2023-001
    Significant Deficiency
  • 946434 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.12M
20.205 Highway Planning and Construction $770,309
66.458 Capitalization Grants for Clean Water State Revolving Funds $572,365
14.218 Community Development Block Grants/entitlement Grants $333,746
97.067 Homeland Security Grant Program $16,800