Finding 2023-001
significant deficiency
- Program
- CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS (21.027)
- Compliance requirement
- Procurement and suspension and debarment
- FAC record
- FY2023 audit on fac.gov
Finding text from the filing
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 have adequate internal controls designed to ensure vendors were not suspended or debarred.
Questioned costs: None
Context: During our testing, it was noted that the City was not reviewing vendors prior to entering into a contract with a vendor to ensure the vendor was not on the suspended or debarred vendor list maintained by the General Services Administration.
Cause: The contract was signed prior to the City's decision to use federal funds for the project, thus there was no verification that the contractor was not suspended or debarred at contract inception.
Effect: The auditor noted no instanced of noncompliance with the provisions of procurement, suspension, and debarment; however, the lact of internal controls over these compliance requirements provides an opportunity for noncompliance.
Repeat Finding: None
Recommendation: We recommend the City design controls to ensure an adequate review process is in place to review potential contractors to determine they are not suspended or debarred.
Views of responsible officials: There is no disagreement with the audit finding.