Audit 292502

Significant Deficiencies in Internal Control over Compliance 2023-001 - Procurement, Suspension and Debarment Program: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing No: 21.027 Federal Agency: U.S. Department of Treasury Federal Award Identification Number: None Year: 2023 Direct Criteria or Specific Requirement Suspension and Debarment – Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services that are expected to equal or exceed $25,000. When a non-federal entity enters into a covered transaction, the non-federal entity must verify that the entity or person is not suspended or debarred. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov, (2) collecting a certification from the entity or person, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). The non-federal entity must have internal controls designed and operating the ensure compliance with the suspension and debarment requirements. Condition Internal controls over entering into several transactions with a suspended or debarred party were not followed on an applicable purchase. Sheridan County’s (the “County) management indicated that a search on SAM was not performed and retained and suspension and debarment language was not appropriately included in contracts exceeding $25,000. Cause The County’s grant personnel advised that the absence of SAM search documentation was missed during their review of the grant documentation, as well as suspension and debarment language from the contracts for services. Effect or Potential Effect Without full compliance with the requirements for procurement, suspension and debarment, the County could be required to repay all amounts expended for these purchases. Questioned Costs None identified. Context The County had four contracts subject to the suspension and debarment compliance requirement. The District did not retain SAM search results to document compliance with verification that the contractor was not suspended or debarred prior to entering into the contract and suspension and debarment language did not exist in the contracts. Identification of a Repeat Finding No Recommendation We recommend the County review its policies and procedures to ensure compliance with suspension and debarment compliance requirement is documented. The County may consider collecting a certification from the entity or adding a clause or condition to the covered transaction with that entity. Additionally, the County may consider developing a checklist to make sure all required documentation is maintained in the grant file. Views of Responsible Officials Sheridan County will modify its template contract used for these types of transactions to include a certification of compliance related to suspension and debarment from the person or entity, so that each contract entered into in the future will be compliant. See Corrective Action Plan.

Significant Deficiencies in Internal Control over Compliance 2023-001 - Procurement, Suspension and Debarment Program: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing No: 21.027 Federal Agency: U.S. Department of Treasury Federal Award Identification Number: None Year: 2023 Direct Criteria or Specific Requirement Suspension and Debarment – Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services that are expected to equal or exceed $25,000. When a non-federal entity enters into a covered transaction, the non-federal entity must verify that the entity or person is not suspended or debarred. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov, (2) collecting a certification from the entity or person, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). The non-federal entity must have internal controls designed and operating the ensure compliance with the suspension and debarment requirements. Condition Internal controls over entering into several transactions with a suspended or debarred party were not followed on an applicable purchase. Sheridan County’s (the “County) management indicated that a search on SAM was not performed and retained and suspension and debarment language was not appropriately included in contracts exceeding $25,000. Cause The County’s grant personnel advised that the absence of SAM search documentation was missed during their review of the grant documentation, as well as suspension and debarment language from the contracts for services. Effect or Potential Effect Without full compliance with the requirements for procurement, suspension and debarment, the County could be required to repay all amounts expended for these purchases. Questioned Costs None identified. Context The County had four contracts subject to the suspension and debarment compliance requirement. The District did not retain SAM search results to document compliance with verification that the contractor was not suspended or debarred prior to entering into the contract and suspension and debarment language did not exist in the contracts. Identification of a Repeat Finding No Recommendation We recommend the County review its policies and procedures to ensure compliance with suspension and debarment compliance requirement is documented. The County may consider collecting a certification from the entity or adding a clause or condition to the covered transaction with that entity. Additionally, the County may consider developing a checklist to make sure all required documentation is maintained in the grant file. Views of Responsible Officials Sheridan County will modify its template contract used for these types of transactions to include a certification of compliance related to suspension and debarment from the person or entity, so that each contract entered into in the future will be compliant. See Corrective Action Plan.