Audit 290404

Criteria – Under Title 2 U.S. Code of Federal Regulations Part 200.319 “All procurement transaction for the acquisition of property or services required under a Federal awards must be conducted in a manner providing full and open competition consistent with eh standards of this section and 200.320” Also, as required by federal regulations in 2 CFR 200.320 and 2 CFR 200.213 “EPLS (excluded parties list system) review of vendors proposing on a federal project is requested at the time of receipt of proposal through the Federal Awarding Agency Contracting Department.” Condition/Context – For the one new vendor contract entered into during the fiscal year, the County did not follow federal procurement standards. A formal procurement method such as sealed bids, proposals or noncompetitive procurement was not performed and there was no evidence that the County verified the vendor was not suspended or debarred per the federal EPLS prior to entering the contract. We verified that the vendor was not suspended or debarred during the fiscal year 2023. Cause – The individuals overseeing contract procurement applied the normal state level requirements and was not aware the additional federal level requirements applicable due to the grant funds coming from a federal source. Effect – Without following the proper federal policies, the County may be entering into transactions with vendors that have been suspended or debarred. Repeated Finding – This is not a repeated finding. Recommendation – We recommend the County assigns a knowledgeable individual with proper training and skill to complete the procurement process and update policies and procedures for federal awards to ensure that the vendors are checked before entering into a contract. Management’s Response – We concur with the finding. Historically, the procurement process is handled at the department level and departments are expected to understand and comply with the requirements related to the funding source(s) used to procure goods and services. The Health and Human Services department followed our County procurement policy and solicited input from the State, the agency that passes WIC monies to the County, on suggestions for procuring dietitian/nutritionist services. While County policy was followed and input from the State was provided, documentation to support the procurement method used did not illustrate compliance with federal procurement standards and the service provider’s suspension and debarment status was not verified prior to entering into a contract. To mitigate this issue in the future, County Counsel reminded departments of the importance of understanding the requirements tied to the source being used to procure goods and services and to notify Counsel when federal monies are being used. Furthermore, County Counsel will include the suspension and debarment clause in the County’s standard contract templates, and the County Purchasing Policy (4-03) will be updated to reflect the importance of complying with requirements tied to a specific funding source. Lastly, County Counsel and Internal Audit will develop and provide training to departments.

Criteria – Under Title 2 U.S. Code of Federal Regulations Part 200.319 “All procurement transaction for the acquisition of property or services required under a Federal awards must be conducted in a manner providing full and open competition consistent with eh standards of this section and 200.320” Also, as required by federal regulations in 2 CFR 200.320 and 2 CFR 200.213 “EPLS (excluded parties list system) review of vendors proposing on a federal project is requested at the time of receipt of proposal through the Federal Awarding Agency Contracting Department.” Condition/Context – For the one new vendor contract entered into during the fiscal year, the County did not follow federal procurement standards. A formal procurement method such as sealed bids, proposals or noncompetitive procurement was not performed and there was no evidence that the County verified the vendor was not suspended or debarred per the federal EPLS prior to entering the contract. We verified that the vendor was not suspended or debarred during the fiscal year 2023. Cause – The individuals overseeing contract procurement applied the normal state level requirements and was not aware the additional federal level requirements applicable due to the grant funds coming from a federal source. Effect – Without following the proper federal policies, the County may be entering into transactions with vendors that have been suspended or debarred. Repeated Finding – This is not a repeated finding. Recommendation – We recommend the County assigns a knowledgeable individual with proper training and skill to complete the procurement process and update policies and procedures for federal awards to ensure that the vendors are checked before entering into a contract. Management’s Response – We concur with the finding. Historically, the procurement process is handled at the department level and departments are expected to understand and comply with the requirements related to the funding source(s) used to procure goods and services. The Health and Human Services department followed our County procurement policy and solicited input from the State, the agency that passes WIC monies to the County, on suggestions for procuring dietitian/nutritionist services. While County policy was followed and input from the State was provided, documentation to support the procurement method used did not illustrate compliance with federal procurement standards and the service provider’s suspension and debarment status was not verified prior to entering into a contract. To mitigate this issue in the future, County Counsel reminded departments of the importance of understanding the requirements tied to the source being used to procure goods and services and to notify Counsel when federal monies are being used. Furthermore, County Counsel will include the suspension and debarment clause in the County’s standard contract templates, and the County Purchasing Policy (4-03) will be updated to reflect the importance of complying with requirements tied to a specific funding source. Lastly, County Counsel and Internal Audit will develop and provide training to departments.