Agenda Packet_2023-05-02 - Laserfiche WebLink

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16 CITY OF SANTA ANA, CALIFORNIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2022 Section II Financial Statement Findings Our audit did not disclose any matters required to be reported in accordance with Government Auditing Standards. Section III Findings and Questioned Costs Major Federal Programs 2022-001 - Suspension and Debarment Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: March 3, 2021, through December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance 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 should have internal controls designed to ensure compliance with those provisions. Condition: The City was not able to provide supporting documentation that the City verified the vendor was not suspended or debarred prior to entering the transaction. Questioned Costs: None. Context: There were twenty-five vendors during FY 21-22 that were a covered transaction for this program. Cause: The City did not maintain supporting documentation that the verification of suspension or debarment was performed prior to entering into a contract for three of the seven samples tested. Effect: The auditor noted no instances of noncompliance with the provisions of suspension, and debarment; however, we were not able to verify that the City followed their internal controls to ensure the vendor was not suspended or debarred prior to entering the transaction. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the City implement procedures to ensure that verification documentation for suspension and debarment is maintained to support the City's internal control over compliance. Views of Responsible Officials: There is no disagreement with the audit finding. The Citys Purchasing Policies & Procedures require the grant managing departments to adhere to the Uniform Guidance requirements and maintain procurement documentation related to Federal grants including suspension and debarment. City staff assigned to manage or support federal grant-funded projects will check sam.gov to ensure their vendors are not excluded parties prior to selecting vendors and maintain supporting documentation. City Council 6 – 20 5/2/2023