Finding 2024-001
material weaknessother matters
- Program
- CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS (21.027); HIGHWAY PLANNING AND CONSTRUCTION (20.205)
- Compliance requirement
- Procurement and suspension and debarment
- FAC record
- FY2024 audit on fac.gov
Finding text from the filing
Assistance Listing, Federal Agency, and Program Name
ALN 21.027, Department of Treasury, COVID 19 Coronavirus State and Local Fiscal Recovery Funds
ALN 20.205, Department of Transportation, Highway Planning and Construction Federal Award Identification Number and Year
ALN 21.027: 1505 0271, 2022
ALN 20.205: 24455, 2021 Pass through Entity
ALN 21.027: Not applicable
ALN 20.205: Colorado Department of Transportation Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding No Criteria Per 2 CFR 200.214, nonfederal entities are subject to the nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, as well as 2 CFR part 180. The regulations in 2 CFR part 180 restrict making federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in federal awards. Nonfederal entities may satisfy the criteria prescribed by 2 CFR part 180 by either checking SAM.gov exclusions, collecting a certification or adding a clause or condition to the covered transaction with the contracted party. Condition The Town could not provide evidence that it performed a check to verify its contractors were not suspended or debarred. Questioned Costs None
Identification of How Questioned Costs Were Computed Not applicable Context The Town used each of its grants to procure services from one contractor and was unable to provide evidence that the check for suspension and debarment was completed prior to entering into its contracts, respectively. [the auditor] reviewed the SAM.gov website, noting that the two vendors were not listed as suspended or disbarred. Cause and Effect The Town did not retain evidence to support that it had conducted the search for whether the contractors were suspended or debarred prior to entering into the contracts. The lack of control could result in the Town entering into contracts with contractors that are suspended or debarred. Subsequently, the Town did complete the search on SAM.gov and retained evidence to support that the contractors were not suspended of debarred, thereby creating no questioned costs. Recommendation We recommend the Town implement its controls as designed by retaining supporting documentation to support that contractors are not suspended or debarred. Views of Responsible Officials and Corrective Action Plan - The Town acknowledges the finding. The oversight was unintentional and occurred due to a lack of formalized procedures for verifying suspension and debarment status for all applicable federal contracts and subawards.