Corpus Christi Regional Transportation Authority

2023-001 – Internal controls over compliance – Federal Transit Administration Federal Awards Type of Finding: Significant Deficiency Assistance Listing Number: 20.500; 20.507 Program Name: Federal Transit - Capital Investment Grants (Fixed Guideway Capital Investment Grants); Federal Transit - Formula Funds (Urbanized Area Formula Program) Pass Through Identifying Number: N/A Award Year: 2023 Federal Agency: Federal Transportation Administration FAIN and year: TX04-0114, 2013; TX-18-0074, 2018; TX21-0066, 2021; TX22-0032, 2022; TX-18-0074, 2018; TX21-0038, 2021; TX21-0066, 2021 Criteria: In accordance with 2 CFR.303(a) of the Uniform Guidance, which applies to the Federal Transportation Administration grants, non-Federal entities are required to establish and maintain effective internal controls over federal awards. Specifically, internal controls should be established to ensure the non-federal entity appropriately documents review for suspension and debarment before entering into covered transactions. In addition, 2 CFR 180 Subpart C prohibits participants in Federal awards from entering into covered transactions with suspended or debarred parties. Condition: The Authority did not frequently review the vendors and did not maintain documentation that the vendors were checked against the sam.gov website for suspension or debarment. Cause: The Authority did not frequently review the vendors and did not maintain documentation that the vendors were checked against the sam.gov website for suspension or debarment due to oversight by personnel. Effect: The Authority could potentially enter into transactions with parties that are suspended or debarred. Questioned Costs: N/A Recomendation: It is recommended that the client establish controls in order to ensure that vendors are reviewed and documentation is maintained through sam.gov or similar to verify that they are not suspended or debarred. Views of Responsible Officials: The Procurement department verifies vendors on sam.gov as part of its vendor review process. While there were instances where the Procurement department did notcheck vendors against the sam.gov website for suspension or debarment, these instances were few and far between. The Procurement department is committed to maintaining the highest standards of compliance and is confident that these corrective actions will prevent similar issues. See corrective action plan beginning on page 103.