City of Glendale, Arizona

2024 – 001 Federal Agency: U. S. Department of the Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Fund Assistance Listing Number: 21.027 Federal Award Identification Number and Year:1505-0271 - 2021 Award Period: March 1, 2021 through December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters 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 suspension, and debarment. The City of Glendale, Arizona did not follow its internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted the City of Glendale, Arizona had adequate internal controls designed to ensure vendors were not suspended or debarred, but the controls were not followed. Questioned costs: None Context: During our testing, it was noted that the City of Glendale, Arizona did not maintain documentation of proper verification of 2 of 8 covered transactions. The City did not maintain documentation that it checked the vendors prior to entering into a contract to ensure the vendors were not on the suspended or debarred vendor list maintained by the General Services Administration. The sample size used for the testing was considered a statistically valid sample. Cause: The City was not following its policy regarding suspension and debarment. Effect: The City could be working with a vendor that is suspended or debarred. Recommendation: We recommend that the City enhance or modify its internal controls over suspension and debarment, as necessary, to rectify this matter for future years. Views of responsible officials and planned corrective actions: The City concurs with this recommendation. Management will emphasize compliance with the City’s policies, as well as with 2 CFR Part 200. Responsible Official: Levi Gibson, Budget and Finance Director.