Finding Text
Federal Agencies: U.S. Department of Justice & U.S. Department of Treasury
Federal Program Titles: Equitable Sharing Program & Coronavirus State and Local Fiscal Recovery Funds
Assistance Listing Numbers: 16.922 & 21.027
Award Period: July 1, 2021, to June 30, 2022
Type of Finding: Significant Deficiency in Internal Control over Compliance
Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions.
Condition: The City was unable to provide evidence that suspension and debarment status of vendors was checked prior to entering into purchasing contracts.
Questioned Costs: None.
Context: 5 of 5 samples for the Equitable Sharing Program and 1 of 5 samples for the Coronavirus State and Local Fiscal Recovery Funds program.
Cause: Procedures were not in place to retain evidence of debarment status check.
Effect: The city is unable to prove that debarment checks took place prior to entering into purchasing contracts.
Recommendation: We recommend that management review its procedures for retaining evidence of debarment status checked prior to entering into purchase agreements.