Finding 982923 (2023-002)

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: During our testing, we noted the City did not perform the suspension and debarment verification. Questioned Costs: None. Context: The City did not perform suspension and debarment verification for four out of the five samples tested. Cause: The department was not aware of the compliance requirement. Effect: There is a potential the City could contract with a disbarred or suspended entity if the verification is not performed. Repeat Finding: This is a repeat of a finding from the immediately prior year, finding number 2022 002. Recommendation: We recommend the City perform suspension and debarment procedures on all vendors with which it plans to enter into a covered transaction. View of Responsible Officials: There is no disagreement with the audit finding.