Town of Prescott Valley, Arizona

Finding Number: 2022-001 Repeat Finding: No Program Name/Assistance Listing Title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Agency: U.S. Department of Treasury Federal Award Number: N/A Pass-Through Agency: N/A Questioned Costs: N/A Type of Finding: Significant Deficiency Compliance Requirement: Procurement, Suspension and Debarment CRITERIA Non-Federal entities are prohibited from contracting with or making sub awards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include those procurement contracts for goods and services awarded under a non-procurement transaction that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR ?180.220. CONDITION Verification of suspension and debarment was not performed for all vendors with whom the Town spent at least $25,000 using federal grant monies. CAUSE The Town did not have policies and procedures in place to ensure vendors were not suspended or debarred. EFFECT The Town?s system of internal controls were not designed effectively in order to prevent instances of noncompliance. However, it was determined that no vendors utilized were suspended or debarred. CONTEXT For two of three vendors reviewed with purchases in excess of $25,000 with Coronavirus State and Local Fiscal Recovery Funds monies, the Town did not document its verification of whether the vendor was suspended or debarred. The sample was not intended to be, and was not, a statistically valid sample. RECOMMENDATION The Town should implement policies and procedures to ensure compliance with Federal requirements regarding suspension and debarment. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.