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Cit7 • 1 _G. _Page 179 �ity <br /> Single Audit Reports <br /> Schedule of Findings and Questioned Costs, Continued <br /> For the Year Ended June 30, 2013 <br /> B. FINDINGS - FINANCIAL STATEMENTS AUDIT <br /> No financial statement findings were noted. <br /> C. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAM AUDIT <br /> No findings or questioned costs were noted. <br /> D. PRIOR YEAR FINDINGS AND QUESTIONED COSTS <br /> SA 2012 -01- Procurement, Suspension, and Debarment <br /> Criteria: <br /> In 2 CFR §180.300, when entering a contract equal to or greater than $25,000, the recipient must verify the <br /> party is not suspended or debarred. Verification can be done by check the Excluded Parties List System <br /> (EPLS), collection certification from the party, or adding a clause or condition in the agreement. <br /> Condition: <br /> For the WaterSMART grant, the Department was not aware of the compliance requirement to verify if the <br /> vendor is federally suspended or debarred for contracts exceeding $25,000. No procedures were performed <br /> to verify the vendor who sold the water meters are federally suspended or debarred. <br /> For the CDBG program, the Department did not maintain documentation that verification was performed <br /> for vendors and sub - recipients exceeding $25,000. <br /> Cause: <br /> The City personnel were not aware of the requirement. <br /> Questioned Costs: <br /> No questioned costs were identified. <br /> Context and Effect: <br /> For the WaterSMART grant, the Public Works Department was not aware of the requirement to verify for <br /> suspension and debarment for non - construction agreements. The City should communicate this <br /> requirement to all City personnel to prevent this from occurring to future grants and projects. <br /> For the CDBG program, the Community Development Department did not maintain documentation for the <br /> verification. The Department was not aware of the requirement. The City should communicate the <br /> requirement of maintaining documentation to verify that the City is in compliance. <br /> Recommendation: <br /> We recommend the City update their procurement policies and procedures, to include a process to verify <br /> contracts greater than $25,000 for non - construction contracts. <br /> 11 <br />