Finding Text
Federal Agency: U.S. Department of Treasury/U.S. Department of Transportation
Federal Program: Coronavirus State & Local Fiscal Recovery Fund/Federal Transit Cluster
Assistance Listing Number: 21.027/20.526 & 20.507
Federal Award Identification Number and Year: 21.027: 1505-0271, 12/31/22; 20.526: IL-2019-010, 10/1/18; 20.507: IL-2020-010, 10/1/21; IL-2020-022-01, 10/19/19; IL-2020-022-02, 10/19/19; IL-2021-023-00, 8/29/22; IL-2022-028-05, 7/1/22; IL-2022-015-01, 03/30/22
Award Period: 21.027: March 3, 2021 through December 31, 2024; 20.526 & 20.507: May 17, 2019 through March 30, 2028
Type of Finding
• Significant Deficiency in Internal Control over Compliance
• Other Matter
Criteria or specific requirement: Federal guidelines required the entity to have procedures documented to verify the vendor of a covered transaction (over $25,000) is not debarred, suspended, or are otherwise excluded from participating in the transaction, prior to entering into a covered transaction.
Condition: The City did not maintain records showing vendors were not suspended or debarred prior to entering into covered transactions.
Questioned costs: None
Context: 7 of 7 items tested had no documentation to support that vendors were not suspended or debarred for Coronavirus State & Local Fiscal Recovery Funds. 2 of 5 items tested had no documentation to support that vendors were not suspended or debarred for Federal Transit Cluster. The samples were statistically valid samples.
Cause: Policies in place were not followed or monitored.
Effect: Lack of internal control procedures can lead to noncompliance with grant requirements and a disallowed cost.
Repeat finding: Repeat of finding 2021-002
Recommendation: We recommend ensuring a procedure is in place to verify vendors or contractors are not suspended or debarred from doing business with the government, prior to the purchase, and maintaining documentation of this.
Views of responsible officials: There is no disagreement with the audit finding.