Finding Text
Criteria: 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.
Condition/Effect: The City did not have documentation verifying that the contractor associated with one material contract tested, was not suspended or debarred. Costs totaling $306,186 related to this contract were charged to the program for the fiscal year.
Auditor's Recommendation: The City should review requirements relating to contract awards where federal funding will be used and implement procedures to retain acceptable documentation of verification that the contractor has not been suspended or debarred.
Views of Responsible Officials and Planned Corrective Actions: The Finance Department personnel will carefully review vendor status in the System for Award Management and produce documentation of eligibility for use of Federal Funds before procurement of goods and services.