Audit 1920

The County’s internal controls were inadequate for ensuring compliance with federal requirements for suspension and debarment. Assistance Listing Number and Title: 21.027; COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Federal Grantor Name: U.S. Department of the Treasury Federal Award/Contract Number: N/A Pass-through Entity Name: Washington State Department of Commerce Pass-through Award/Contract Number: CLH31015 and CLH31015-CSFRF-CTS LHJ Allocation Known Questioned Cost Amount: $0 Prior Year Audit Finding: Yes, Finding 2021-002 Background The purpose of the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) is to respond to the COVID-19 pandemic’s negative effects on public health and the economy, provide premium pay to essential workers during the pandemic, provide government services to the extent COVID-19 caused a reduction in revenues collected, and make necessary investments in water, sewer or broadband infrastructure. In 2022, the County spent $1,267,984 in program funds for the provision of government services, mitigating the effects of COVID-19 on public health, and supporting the tourism industry. Federal regulations require recipients to establish and follow internal controls that ensure compliance with program requirements. These controls include understanding program requirements and monitoring the effectiveness of established controls. Federal requirements prohibit recipients from contracting with or purchasing from parties suspended or debarred from doing business with the federal government. Whenever the County enters into contracts or purchases goods or services that it expects to equal or exceed $25,000, paid all or in part with federal funds, it must verify the contractors or subrecipients have not been suspended, debarred or otherwise excluded. This requirement also applies to all program subawards, regardless of amount. The County may accomplish this verification by collecting a written certification from the contractor or subrecipient, adding a clause or condition into the contract that states the contractor or subrecipient is not suspended or debarred, or checking for exclusion records in the U.S. General Services Administration’s System for Award Management at SAM.gov. The County must perform this verification before entering into the contract or making the subaward, and it must maintain documentation demonstrating compliance with this federal requirement. Description of Condition Our audit found the County’s internal controls were inadequate for ensuring staff verified the suspension and debarment status of contractors for purchases exceeding $25,000, paid all or in part with federal funds. Specifically, the County did not retain documentation to demonstrate that staff verified, prior to entering into the covered transactions, that three contractors paid a total of $365,722 in 2022 were not suspended or debarred from participating in federal programs. We consider this internal control deficiency to be a material weakness, which led to material noncompliance. Cause of Condition The County experienced turnover during 2022, and staff could not locate documentation to demonstrate compliance. The County received an audit finding in February 2023 regarding suspension and debarment. At that time, the County verified contractors paid in 2022 were not suspended or debarred; however, the verification occurred after the County had already entered into the contracts. Effect of Condition Without adequate internal controls over suspension and debarment requirements, the County cannot guarantee it is paying federal funds only to eligible contractors. Additionally, the awarding agency could potentially recover any payments the County made to an ineligible party. Since the County subsequently verified the contractors were not suspended and debarred, we are not questioning costs. Recommendation We recommend the County strengthen internal controls to ensure all contractors it expects to pay $25,000 or more, all or in part with federal funds, are not suspended or debarred from participating in federal programs. In addition, the County should maintain documentation demonstrating compliance with this federal requirement. County’s Response County acknowledges the need to ensure controls with respect to vendor status, and that prior staff failed to document this internal process for select vendor. County notes that this finding was identified after County’s internal processes were fully revised to address this issue, though the corrective measure was implemented after the identified contracts were executed. Auditor’s Remarks We appreciate the County’s commitment to resolving this finding, and thank the County for its cooperation and assistance during the audit. We will review the corrective action taken during our next audit. Applicable Laws and Regulations Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), section 516, Audit findings, establishes reporting requirements for audit findings. Title 2 CFR Part 200, Uniform Guidance, section 303, Internal controls, describes the requirements for auditees to maintain internal controls over federal programs and comply with federal program requirements. The American Institute of Certified Public Accountants defines significant deficiencies and material weaknesses in its Codification of Statements on Auditing Standards, section 935, Compliance Audits, paragraph 11. Title 2 CFR Part 180, OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement), establishes nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689.

The County’s internal controls were inadequate for ensuring compliance with federal requirements for suspension and debarment. Assistance Listing Number and Title: 21.027; COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Federal Grantor Name: U.S. Department of the Treasury Federal Award/Contract Number: N/A Pass-through Entity Name: Washington State Department of Commerce Pass-through Award/Contract Number: CLH31015 and CLH31015-CSFRF-CTS LHJ Allocation Known Questioned Cost Amount: $0 Prior Year Audit Finding: Yes, Finding 2021-002 Background The purpose of the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) is to respond to the COVID-19 pandemic’s negative effects on public health and the economy, provide premium pay to essential workers during the pandemic, provide government services to the extent COVID-19 caused a reduction in revenues collected, and make necessary investments in water, sewer or broadband infrastructure. In 2022, the County spent $1,267,984 in program funds for the provision of government services, mitigating the effects of COVID-19 on public health, and supporting the tourism industry. Federal regulations require recipients to establish and follow internal controls that ensure compliance with program requirements. These controls include understanding program requirements and monitoring the effectiveness of established controls. Federal requirements prohibit recipients from contracting with or purchasing from parties suspended or debarred from doing business with the federal government. Whenever the County enters into contracts or purchases goods or services that it expects to equal or exceed $25,000, paid all or in part with federal funds, it must verify the contractors or subrecipients have not been suspended, debarred or otherwise excluded. This requirement also applies to all program subawards, regardless of amount. The County may accomplish this verification by collecting a written certification from the contractor or subrecipient, adding a clause or condition into the contract that states the contractor or subrecipient is not suspended or debarred, or checking for exclusion records in the U.S. General Services Administration’s System for Award Management at SAM.gov. The County must perform this verification before entering into the contract or making the subaward, and it must maintain documentation demonstrating compliance with this federal requirement. Description of Condition Our audit found the County’s internal controls were inadequate for ensuring staff verified the suspension and debarment status of contractors for purchases exceeding $25,000, paid all or in part with federal funds. Specifically, the County did not retain documentation to demonstrate that staff verified, prior to entering into the covered transactions, that three contractors paid a total of $365,722 in 2022 were not suspended or debarred from participating in federal programs. We consider this internal control deficiency to be a material weakness, which led to material noncompliance. Cause of Condition The County experienced turnover during 2022, and staff could not locate documentation to demonstrate compliance. The County received an audit finding in February 2023 regarding suspension and debarment. At that time, the County verified contractors paid in 2022 were not suspended or debarred; however, the verification occurred after the County had already entered into the contracts. Effect of Condition Without adequate internal controls over suspension and debarment requirements, the County cannot guarantee it is paying federal funds only to eligible contractors. Additionally, the awarding agency could potentially recover any payments the County made to an ineligible party. Since the County subsequently verified the contractors were not suspended and debarred, we are not questioning costs. Recommendation We recommend the County strengthen internal controls to ensure all contractors it expects to pay $25,000 or more, all or in part with federal funds, are not suspended or debarred from participating in federal programs. In addition, the County should maintain documentation demonstrating compliance with this federal requirement. County’s Response County acknowledges the need to ensure controls with respect to vendor status, and that prior staff failed to document this internal process for select vendor. County notes that this finding was identified after County’s internal processes were fully revised to address this issue, though the corrective measure was implemented after the identified contracts were executed. Auditor’s Remarks We appreciate the County’s commitment to resolving this finding, and thank the County for its cooperation and assistance during the audit. We will review the corrective action taken during our next audit. Applicable Laws and Regulations Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), section 516, Audit findings, establishes reporting requirements for audit findings. Title 2 CFR Part 200, Uniform Guidance, section 303, Internal controls, describes the requirements for auditees to maintain internal controls over federal programs and comply with federal program requirements. The American Institute of Certified Public Accountants defines significant deficiencies and material weaknesses in its Codification of Statements on Auditing Standards, section 935, Compliance Audits, paragraph 11. Title 2 CFR Part 180, OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement), establishes nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689.

The County’s internal controls were inadequate for ensuring compliance with federal requirements for suspension and debarment. Assistance Listing Number and Title: 21.027; COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Federal Grantor Name: U.S. Department of the Treasury Federal Award/Contract Number: N/A Pass-through Entity Name: Washington State Department of Commerce Pass-through Award/Contract Number: CLH31015 and CLH31015-CSFRF-CTS LHJ Allocation Known Questioned Cost Amount: $0 Prior Year Audit Finding: Yes, Finding 2021-002 Background The purpose of the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) is to respond to the COVID-19 pandemic’s negative effects on public health and the economy, provide premium pay to essential workers during the pandemic, provide government services to the extent COVID-19 caused a reduction in revenues collected, and make necessary investments in water, sewer or broadband infrastructure. In 2022, the County spent $1,267,984 in program funds for the provision of government services, mitigating the effects of COVID-19 on public health, and supporting the tourism industry. Federal regulations require recipients to establish and follow internal controls that ensure compliance with program requirements. These controls include understanding program requirements and monitoring the effectiveness of established controls. Federal requirements prohibit recipients from contracting with or purchasing from parties suspended or debarred from doing business with the federal government. Whenever the County enters into contracts or purchases goods or services that it expects to equal or exceed $25,000, paid all or in part with federal funds, it must verify the contractors or subrecipients have not been suspended, debarred or otherwise excluded. This requirement also applies to all program subawards, regardless of amount. The County may accomplish this verification by collecting a written certification from the contractor or subrecipient, adding a clause or condition into the contract that states the contractor or subrecipient is not suspended or debarred, or checking for exclusion records in the U.S. General Services Administration’s System for Award Management at SAM.gov. The County must perform this verification before entering into the contract or making the subaward, and it must maintain documentation demonstrating compliance with this federal requirement. Description of Condition Our audit found the County’s internal controls were inadequate for ensuring staff verified the suspension and debarment status of contractors for purchases exceeding $25,000, paid all or in part with federal funds. Specifically, the County did not retain documentation to demonstrate that staff verified, prior to entering into the covered transactions, that three contractors paid a total of $365,722 in 2022 were not suspended or debarred from participating in federal programs. We consider this internal control deficiency to be a material weakness, which led to material noncompliance. Cause of Condition The County experienced turnover during 2022, and staff could not locate documentation to demonstrate compliance. The County received an audit finding in February 2023 regarding suspension and debarment. At that time, the County verified contractors paid in 2022 were not suspended or debarred; however, the verification occurred after the County had already entered into the contracts. Effect of Condition Without adequate internal controls over suspension and debarment requirements, the County cannot guarantee it is paying federal funds only to eligible contractors. Additionally, the awarding agency could potentially recover any payments the County made to an ineligible party. Since the County subsequently verified the contractors were not suspended and debarred, we are not questioning costs. Recommendation We recommend the County strengthen internal controls to ensure all contractors it expects to pay $25,000 or more, all or in part with federal funds, are not suspended or debarred from participating in federal programs. In addition, the County should maintain documentation demonstrating compliance with this federal requirement. County’s Response County acknowledges the need to ensure controls with respect to vendor status, and that prior staff failed to document this internal process for select vendor. County notes that this finding was identified after County’s internal processes were fully revised to address this issue, though the corrective measure was implemented after the identified contracts were executed. Auditor’s Remarks We appreciate the County’s commitment to resolving this finding, and thank the County for its cooperation and assistance during the audit. We will review the corrective action taken during our next audit. Applicable Laws and Regulations Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), section 516, Audit findings, establishes reporting requirements for audit findings. Title 2 CFR Part 200, Uniform Guidance, section 303, Internal controls, describes the requirements for auditees to maintain internal controls over federal programs and comply with federal program requirements. The American Institute of Certified Public Accountants defines significant deficiencies and material weaknesses in its Codification of Statements on Auditing Standards, section 935, Compliance Audits, paragraph 11. Title 2 CFR Part 180, OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement), establishes nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689.

The County’s internal controls were inadequate for ensuring compliance with federal requirements for suspension and debarment. Assistance Listing Number and Title: 21.027; COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Federal Grantor Name: U.S. Department of the Treasury Federal Award/Contract Number: N/A Pass-through Entity Name: Washington State Department of Commerce Pass-through Award/Contract Number: CLH31015 and CLH31015-CSFRF-CTS LHJ Allocation Known Questioned Cost Amount: $0 Prior Year Audit Finding: Yes, Finding 2021-002 Background The purpose of the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) is to respond to the COVID-19 pandemic’s negative effects on public health and the economy, provide premium pay to essential workers during the pandemic, provide government services to the extent COVID-19 caused a reduction in revenues collected, and make necessary investments in water, sewer or broadband infrastructure. In 2022, the County spent $1,267,984 in program funds for the provision of government services, mitigating the effects of COVID-19 on public health, and supporting the tourism industry. Federal regulations require recipients to establish and follow internal controls that ensure compliance with program requirements. These controls include understanding program requirements and monitoring the effectiveness of established controls. Federal requirements prohibit recipients from contracting with or purchasing from parties suspended or debarred from doing business with the federal government. Whenever the County enters into contracts or purchases goods or services that it expects to equal or exceed $25,000, paid all or in part with federal funds, it must verify the contractors or subrecipients have not been suspended, debarred or otherwise excluded. This requirement also applies to all program subawards, regardless of amount. The County may accomplish this verification by collecting a written certification from the contractor or subrecipient, adding a clause or condition into the contract that states the contractor or subrecipient is not suspended or debarred, or checking for exclusion records in the U.S. General Services Administration’s System for Award Management at SAM.gov. The County must perform this verification before entering into the contract or making the subaward, and it must maintain documentation demonstrating compliance with this federal requirement. Description of Condition Our audit found the County’s internal controls were inadequate for ensuring staff verified the suspension and debarment status of contractors for purchases exceeding $25,000, paid all or in part with federal funds. Specifically, the County did not retain documentation to demonstrate that staff verified, prior to entering into the covered transactions, that three contractors paid a total of $365,722 in 2022 were not suspended or debarred from participating in federal programs. We consider this internal control deficiency to be a material weakness, which led to material noncompliance. Cause of Condition The County experienced turnover during 2022, and staff could not locate documentation to demonstrate compliance. The County received an audit finding in February 2023 regarding suspension and debarment. At that time, the County verified contractors paid in 2022 were not suspended or debarred; however, the verification occurred after the County had already entered into the contracts. Effect of Condition Without adequate internal controls over suspension and debarment requirements, the County cannot guarantee it is paying federal funds only to eligible contractors. Additionally, the awarding agency could potentially recover any payments the County made to an ineligible party. Since the County subsequently verified the contractors were not suspended and debarred, we are not questioning costs. Recommendation We recommend the County strengthen internal controls to ensure all contractors it expects to pay $25,000 or more, all or in part with federal funds, are not suspended or debarred from participating in federal programs. In addition, the County should maintain documentation demonstrating compliance with this federal requirement. County’s Response County acknowledges the need to ensure controls with respect to vendor status, and that prior staff failed to document this internal process for select vendor. County notes that this finding was identified after County’s internal processes were fully revised to address this issue, though the corrective measure was implemented after the identified contracts were executed. Auditor’s Remarks We appreciate the County’s commitment to resolving this finding, and thank the County for its cooperation and assistance during the audit. We will review the corrective action taken during our next audit. Applicable Laws and Regulations Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), section 516, Audit findings, establishes reporting requirements for audit findings. Title 2 CFR Part 200, Uniform Guidance, section 303, Internal controls, describes the requirements for auditees to maintain internal controls over federal programs and comply with federal program requirements. The American Institute of Certified Public Accountants defines significant deficiencies and material weaknesses in its Codification of Statements on Auditing Standards, section 935, Compliance Audits, paragraph 11. Title 2 CFR Part 180, OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement), establishes nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689.

The County’s internal controls were inadequate for ensuring compliance with federal requirements for suspension and debarment. Assistance Listing Number and Title: 21.027; COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Federal Grantor Name: U.S. Department of the Treasury Federal Award/Contract Number: N/A Pass-through Entity Name: Washington State Department of Commerce Pass-through Award/Contract Number: CLH31015 and CLH31015-CSFRF-CTS LHJ Allocation Known Questioned Cost Amount: $0 Prior Year Audit Finding: Yes, Finding 2021-002 Background The purpose of the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) is to respond to the COVID-19 pandemic’s negative effects on public health and the economy, provide premium pay to essential workers during the pandemic, provide government services to the extent COVID-19 caused a reduction in revenues collected, and make necessary investments in water, sewer or broadband infrastructure. In 2022, the County spent $1,267,984 in program funds for the provision of government services, mitigating the effects of COVID-19 on public health, and supporting the tourism industry. Federal regulations require recipients to establish and follow internal controls that ensure compliance with program requirements. These controls include understanding program requirements and monitoring the effectiveness of established controls. Federal requirements prohibit recipients from contracting with or purchasing from parties suspended or debarred from doing business with the federal government. Whenever the County enters into contracts or purchases goods or services that it expects to equal or exceed $25,000, paid all or in part with federal funds, it must verify the contractors or subrecipients have not been suspended, debarred or otherwise excluded. This requirement also applies to all program subawards, regardless of amount. The County may accomplish this verification by collecting a written certification from the contractor or subrecipient, adding a clause or condition into the contract that states the contractor or subrecipient is not suspended or debarred, or checking for exclusion records in the U.S. General Services Administration’s System for Award Management at SAM.gov. The County must perform this verification before entering into the contract or making the subaward, and it must maintain documentation demonstrating compliance with this federal requirement. Description of Condition Our audit found the County’s internal controls were inadequate for ensuring staff verified the suspension and debarment status of contractors for purchases exceeding $25,000, paid all or in part with federal funds. Specifically, the County did not retain documentation to demonstrate that staff verified, prior to entering into the covered transactions, that three contractors paid a total of $365,722 in 2022 were not suspended or debarred from participating in federal programs. We consider this internal control deficiency to be a material weakness, which led to material noncompliance. Cause of Condition The County experienced turnover during 2022, and staff could not locate documentation to demonstrate compliance. The County received an audit finding in February 2023 regarding suspension and debarment. At that time, the County verified contractors paid in 2022 were not suspended or debarred; however, the verification occurred after the County had already entered into the contracts. Effect of Condition Without adequate internal controls over suspension and debarment requirements, the County cannot guarantee it is paying federal funds only to eligible contractors. Additionally, the awarding agency could potentially recover any payments the County made to an ineligible party. Since the County subsequently verified the contractors were not suspended and debarred, we are not questioning costs. Recommendation We recommend the County strengthen internal controls to ensure all contractors it expects to pay $25,000 or more, all or in part with federal funds, are not suspended or debarred from participating in federal programs. In addition, the County should maintain documentation demonstrating compliance with this federal requirement. County’s Response County acknowledges the need to ensure controls with respect to vendor status, and that prior staff failed to document this internal process for select vendor. County notes that this finding was identified after County’s internal processes were fully revised to address this issue, though the corrective measure was implemented after the identified contracts were executed. Auditor’s Remarks We appreciate the County’s commitment to resolving this finding, and thank the County for its cooperation and assistance during the audit. We will review the corrective action taken during our next audit. Applicable Laws and Regulations Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), section 516, Audit findings, establishes reporting requirements for audit findings. Title 2 CFR Part 200, Uniform Guidance, section 303, Internal controls, describes the requirements for auditees to maintain internal controls over federal programs and comply with federal program requirements. The American Institute of Certified Public Accountants defines significant deficiencies and material weaknesses in its Codification of Statements on Auditing Standards, section 935, Compliance Audits, paragraph 11. Title 2 CFR Part 180, OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement), establishes nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689.

The County’s internal controls were inadequate for ensuring compliance with federal requirements for suspension and debarment. Assistance Listing Number and Title: 21.027; COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Federal Grantor Name: U.S. Department of the Treasury Federal Award/Contract Number: N/A Pass-through Entity Name: Washington State Department of Commerce Pass-through Award/Contract Number: CLH31015 and CLH31015-CSFRF-CTS LHJ Allocation Known Questioned Cost Amount: $0 Prior Year Audit Finding: Yes, Finding 2021-002 Background The purpose of the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) is to respond to the COVID-19 pandemic’s negative effects on public health and the economy, provide premium pay to essential workers during the pandemic, provide government services to the extent COVID-19 caused a reduction in revenues collected, and make necessary investments in water, sewer or broadband infrastructure. In 2022, the County spent $1,267,984 in program funds for the provision of government services, mitigating the effects of COVID-19 on public health, and supporting the tourism industry. Federal regulations require recipients to establish and follow internal controls that ensure compliance with program requirements. These controls include understanding program requirements and monitoring the effectiveness of established controls. Federal requirements prohibit recipients from contracting with or purchasing from parties suspended or debarred from doing business with the federal government. Whenever the County enters into contracts or purchases goods or services that it expects to equal or exceed $25,000, paid all or in part with federal funds, it must verify the contractors or subrecipients have not been suspended, debarred or otherwise excluded. This requirement also applies to all program subawards, regardless of amount. The County may accomplish this verification by collecting a written certification from the contractor or subrecipient, adding a clause or condition into the contract that states the contractor or subrecipient is not suspended or debarred, or checking for exclusion records in the U.S. General Services Administration’s System for Award Management at SAM.gov. The County must perform this verification before entering into the contract or making the subaward, and it must maintain documentation demonstrating compliance with this federal requirement. Description of Condition Our audit found the County’s internal controls were inadequate for ensuring staff verified the suspension and debarment status of contractors for purchases exceeding $25,000, paid all or in part with federal funds. Specifically, the County did not retain documentation to demonstrate that staff verified, prior to entering into the covered transactions, that three contractors paid a total of $365,722 in 2022 were not suspended or debarred from participating in federal programs. We consider this internal control deficiency to be a material weakness, which led to material noncompliance. Cause of Condition The County experienced turnover during 2022, and staff could not locate documentation to demonstrate compliance. The County received an audit finding in February 2023 regarding suspension and debarment. At that time, the County verified contractors paid in 2022 were not suspended or debarred; however, the verification occurred after the County had already entered into the contracts. Effect of Condition Without adequate internal controls over suspension and debarment requirements, the County cannot guarantee it is paying federal funds only to eligible contractors. Additionally, the awarding agency could potentially recover any payments the County made to an ineligible party. Since the County subsequently verified the contractors were not suspended and debarred, we are not questioning costs. Recommendation We recommend the County strengthen internal controls to ensure all contractors it expects to pay $25,000 or more, all or in part with federal funds, are not suspended or debarred from participating in federal programs. In addition, the County should maintain documentation demonstrating compliance with this federal requirement. County’s Response County acknowledges the need to ensure controls with respect to vendor status, and that prior staff failed to document this internal process for select vendor. County notes that this finding was identified after County’s internal processes were fully revised to address this issue, though the corrective measure was implemented after the identified contracts were executed. Auditor’s Remarks We appreciate the County’s commitment to resolving this finding, and thank the County for its cooperation and assistance during the audit. We will review the corrective action taken during our next audit. Applicable Laws and Regulations Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), section 516, Audit findings, establishes reporting requirements for audit findings. Title 2 CFR Part 200, Uniform Guidance, section 303, Internal controls, describes the requirements for auditees to maintain internal controls over federal programs and comply with federal program requirements. The American Institute of Certified Public Accountants defines significant deficiencies and material weaknesses in its Codification of Statements on Auditing Standards, section 935, Compliance Audits, paragraph 11. Title 2 CFR Part 180, OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement), establishes nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689.