Finding 948613 (2023-002)

Program: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Financial Assistance Listing Number: 21.027 Federal Agency: U.S. Department of Treasury Award Year: 2021 Grant Award Number: N/A Compliance Requirement: Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria: 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. Cause: The City did not maintain supporting documentation that the verification of suspension or debarment was performed prior to entering into a contract. Questioned Costs: None Effect: We 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. Context: A nonstatistical sample of three (3) out of (13) vendor contracts were tested. Documentation to support that the City performed the verification of suspension or debarment could not be provided. Repeat Finding from Prior Year(s): No. 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: See separate corrective action plan.