Audit 302840

NONCOMPLIANCE WITH GRANT TERMS AND CONDITIONS; FORMULA GRANTS FOR RURAL AREAS AND TRIBAL TRANSIT PROGRAM; AL No. 20.509, GRANT No 111604, YEAR ENDED JUNE 30, 2023 Criteria: Per section 3.5 of the grant contract, the county is required to obtain from its third-party contractors certifications required by Department of Transportation regulations, “Government­wide Debarment and Suspension (Non-procurement)," 49 CFR Part 29, and otherwise comply with the requirements of those regulations. Condition 1: The county did not obtain the required certifications in order to verify that program recipients/participants were not suspended, debarred, or otherwise excluded from participation in the program. Criteria: Section 2.8 of the grant contract requires the county to include contract Sections 2.9 to 3.17 in any advertisement or invitation to bid for any procurement under the contract. Condition 2: The county did not include the required contract sections in its bid advertisements. Criteria: Section 3.12 of the grant contract incorporates FTA Circular 4220.1F terms into the contract. Per FTA Circular 4220.1F, Federal Transit Authority’s (FTA) Buy America requirements prevent FTA from obligating an amount that may be appropriated to carry out its program for a project unless "the steel, iron, and manufactured goods used in the project are produced in the United States" (49 U.S.C. § 5323(j)(1)). FTA’s Buy America requirements apply to third-party procurements by FTA grant recipients. A grantee must include in its bid or request for proposal (RFP) specification for procurement of steel, iron or manufactured goods (including rolling stock) an appropriate notice of the Buy America provision and require, as a condition of responsiveness, that the bidder or offeror submit with the bid or offer a completed Buy America certificate in accordance with 49 CFR §§661.6 or 661.12. Condition 3: The county did not include in its bid or request for proposal (RFP) specification for procurement of steel, iron or manufactured goods nor did they require the bidders to submit completed Buy America certificates. Criteria: Section 3.1 of the grant contract incorporates the FTA Master Contract MA(26) by reference. Section 16 (9) of FTA Master Contract MA(26) restricts lobbying in accordance with 31 U.S.C. § 1352. Contractors that apply or bid for an award exceeding $100,000 must file the certification required by 49 C.F.R. part 20. Each tier certifies to the tier above that it will not and has not used federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any federal contract, grant or any other award covered by 31 U.S.C. § 1352. Each tier must also disclose any lobbying with non-federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the non-federal award. Condition 4: The certifications required by 49 C.F.R. part 20 were not filed nor on hand for inspection. Cause: The county does not have a system in place that will allow full compliance with all program terms and conditions. Effect: Non-compliance with program terms and conditions. Questioned Costs: None Recommendation: Management should develop procedures that will provide reasonable assurance that procurement of goods and services are made in compliance with applicable federal regulations and other procurement requirements specific to a federal award or subaward, and that no subaward, contract, or agreement for purchase of goods or services is made with any suspended or debarred party. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.

NONCOMPLIANCE WITH ALLOWABLE COSTS/COST PRINCIPLES; FORMULA GRANTS FOR RURAL AREAS AND TRIBAL TRANSIT PROGRAM; AL No. 20.509, GRANT No’s 112761 AND 112626, YEAR ENDED JUNE 30, 2023 Criteria: Because the federal reimbursement rates are different for Operations, Administration and Maintenance, the general ledger accounts are separated into the cost categories that are reported to the granting agencies. Condition: The expenditures reported on the reimbursement reports filed with the granting agency did not agree with the county’s general ledger. Questioned Costs: None Cause: The county does not have preparation and review procedures to reconcile the amounts reported on the reimbursement requests to the general ledger accounting records. Effect: Incorrect reimbursement amounts were received. Recommendation: The county should develop a process to verify that amounts reported to the granting agency agree to the general ledger accounting records. Views of responsible officials and planned corrective actions: The government agrees with this finding and will adhere to the attached corrective action plan.

NONCOMPLIANCE WITH ALLOWABLE COSTS/COST PRINCIPLES; FORMULA GRANTS FOR RURAL AREAS AND TRIBAL TRANSIT PROGRAM; AL No. 20.509, GRANT No’s 112761 AND 112626, YEAR ENDED JUNE 30, 2023 Criteria: Because the federal reimbursement rates are different for Operations, Administration and Maintenance, the general ledger accounts are separated into the cost categories that are reported to the granting agencies. Condition: The expenditures reported on the reimbursement reports filed with the granting agency did not agree with the county’s general ledger. Questioned Costs: None Cause: The county does not have preparation and review procedures to reconcile the amounts reported on the reimbursement requests to the general ledger accounting records. Effect: Incorrect reimbursement amounts were received. Recommendation: The county should develop a process to verify that amounts reported to the granting agency agree to the general ledger accounting records. Views of responsible officials and planned corrective actions: The government agrees with this finding and will adhere to the attached corrective action plan.

NONCOMPLIANCE WITH PROCUREMENT, SUSPENSION & DEBARMENT REQUIREMENTS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS; AL No. 21.027, YEAR ENDED JUNE 30 2023 Criteria: Per section 13 of Treasury’s Final Rule FAQs and 2 CFR 200.214, counties must comply with the procurement standards set forth in 2 CFR 200.318, through 2 CFR 200.327, when using their SLFRF award funds to procure goods and services to carry out the objectives of their SLFRF award. In addition, 2 CFR 200.214, prohibits recipients from using SLFRF funds to enter into subawards and contracts with parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs. Condition 1: The county did not verify that program recipients/participants were not suspended, debarred, or otherwise excluded from participation in the program. Condition 2: The county did not formally bid a water and sewer line extension project at the fairgrounds as required by federal procurement standards established in 2 CFR 300.19. Cause: The county does not have procurement policies and procedures in place that allows it to comply with procurement standards outlined in the Uniform Guidance. Effect: Non-compliance with program terms and conditions. Questioned Costs: None Recommendation: Management should develop procedures that will provide reasonable assurance that procurement of goods and services are made in compliance with applicable federal regulations and other procurement requirements specific to a federal award or subaward, and that no subaward, contract, or agreement for purchase of goods or services is made with any suspended or debarred party. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.

NONCOMPLIANCE WITH PROCUREMENT, SUSPENSION & DEBARMENT REQUIREMENTS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS; AL No. 21.027, YEAR ENDED JUNE 30 2023 Criteria: Per section 13 of Treasury’s Final Rule FAQs and 2 CFR 200.214, counties must comply with the procurement standards set forth in 2 CFR 200.318, through 2 CFR 200.327, when using their SLFRF award funds to procure goods and services to carry out the objectives of their SLFRF award. In addition, 2 CFR 200.214, prohibits recipients from using SLFRF funds to enter into subawards and contracts with parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs. Condition 1: The county did not verify that program recipients/participants were not suspended, debarred, or otherwise excluded from participation in the program. Condition 2: The county did not formally bid a water and sewer line extension project at the fairgrounds as required by federal procurement standards established in 2 CFR 300.19. Cause: The county does not have procurement policies and procedures in place that allows it to comply with procurement standards outlined in the Uniform Guidance. Effect: Non-compliance with program terms and conditions. Questioned Costs: None Recommendation: Management should develop procedures that will provide reasonable assurance that procurement of goods and services are made in compliance with applicable federal regulations and other procurement requirements specific to a federal award or subaward, and that no subaward, contract, or agreement for purchase of goods or services is made with any suspended or debarred party. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.

NONCOMPLIANCE WITH PROCUREMENT, SUSPENSION & DEBARMENT REQUIREMENTS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS; AL No. 21.027, YEAR ENDED JUNE 30 2023 Criteria: Per section 13 of Treasury’s Final Rule FAQs and 2 CFR 200.214, counties must comply with the procurement standards set forth in 2 CFR 200.318, through 2 CFR 200.327, when using their SLFRF award funds to procure goods and services to carry out the objectives of their SLFRF award. In addition, 2 CFR 200.214, prohibits recipients from using SLFRF funds to enter into subawards and contracts with parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs. Condition 1: The county did not verify that program recipients/participants were not suspended, debarred, or otherwise excluded from participation in the program. Condition 2: The county did not formally bid a water and sewer line extension project at the fairgrounds as required by federal procurement standards established in 2 CFR 300.19. Cause: The county does not have procurement policies and procedures in place that allows it to comply with procurement standards outlined in the Uniform Guidance. Effect: Non-compliance with program terms and conditions. Questioned Costs: None Recommendation: Management should develop procedures that will provide reasonable assurance that procurement of goods and services are made in compliance with applicable federal regulations and other procurement requirements specific to a federal award or subaward, and that no subaward, contract, or agreement for purchase of goods or services is made with any suspended or debarred party. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.

NONCOMPLIANCE WITH GRANT TERMS AND CONDITIONS; FORMULA GRANTS FOR RURAL AREAS AND TRIBAL TRANSIT PROGRAM; AL No. 20.509, GRANT No 111604, YEAR ENDED JUNE 30, 2023 Criteria: Per section 3.5 of the grant contract, the county is required to obtain from its third-party contractors certifications required by Department of Transportation regulations, “Government­wide Debarment and Suspension (Non-procurement)," 49 CFR Part 29, and otherwise comply with the requirements of those regulations. Condition 1: The county did not obtain the required certifications in order to verify that program recipients/participants were not suspended, debarred, or otherwise excluded from participation in the program. Criteria: Section 2.8 of the grant contract requires the county to include contract Sections 2.9 to 3.17 in any advertisement or invitation to bid for any procurement under the contract. Condition 2: The county did not include the required contract sections in its bid advertisements. Criteria: Section 3.12 of the grant contract incorporates FTA Circular 4220.1F terms into the contract. Per FTA Circular 4220.1F, Federal Transit Authority’s (FTA) Buy America requirements prevent FTA from obligating an amount that may be appropriated to carry out its program for a project unless "the steel, iron, and manufactured goods used in the project are produced in the United States" (49 U.S.C. § 5323(j)(1)). FTA’s Buy America requirements apply to third-party procurements by FTA grant recipients. A grantee must include in its bid or request for proposal (RFP) specification for procurement of steel, iron or manufactured goods (including rolling stock) an appropriate notice of the Buy America provision and require, as a condition of responsiveness, that the bidder or offeror submit with the bid or offer a completed Buy America certificate in accordance with 49 CFR §§661.6 or 661.12. Condition 3: The county did not include in its bid or request for proposal (RFP) specification for procurement of steel, iron or manufactured goods nor did they require the bidders to submit completed Buy America certificates. Criteria: Section 3.1 of the grant contract incorporates the FTA Master Contract MA(26) by reference. Section 16 (9) of FTA Master Contract MA(26) restricts lobbying in accordance with 31 U.S.C. § 1352. Contractors that apply or bid for an award exceeding $100,000 must file the certification required by 49 C.F.R. part 20. Each tier certifies to the tier above that it will not and has not used federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any federal contract, grant or any other award covered by 31 U.S.C. § 1352. Each tier must also disclose any lobbying with non-federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the non-federal award. Condition 4: The certifications required by 49 C.F.R. part 20 were not filed nor on hand for inspection. Cause: The county does not have a system in place that will allow full compliance with all program terms and conditions. Effect: Non-compliance with program terms and conditions. Questioned Costs: None Recommendation: Management should develop procedures that will provide reasonable assurance that procurement of goods and services are made in compliance with applicable federal regulations and other procurement requirements specific to a federal award or subaward, and that no subaward, contract, or agreement for purchase of goods or services is made with any suspended or debarred party. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.

NONCOMPLIANCE WITH ALLOWABLE COSTS/COST PRINCIPLES; FORMULA GRANTS FOR RURAL AREAS AND TRIBAL TRANSIT PROGRAM; AL No. 20.509, GRANT No’s 112761 AND 112626, YEAR ENDED JUNE 30, 2023 Criteria: Because the federal reimbursement rates are different for Operations, Administration and Maintenance, the general ledger accounts are separated into the cost categories that are reported to the granting agencies. Condition: The expenditures reported on the reimbursement reports filed with the granting agency did not agree with the county’s general ledger. Questioned Costs: None Cause: The county does not have preparation and review procedures to reconcile the amounts reported on the reimbursement requests to the general ledger accounting records. Effect: Incorrect reimbursement amounts were received. Recommendation: The county should develop a process to verify that amounts reported to the granting agency agree to the general ledger accounting records. Views of responsible officials and planned corrective actions: The government agrees with this finding and will adhere to the attached corrective action plan.

NONCOMPLIANCE WITH ALLOWABLE COSTS/COST PRINCIPLES; FORMULA GRANTS FOR RURAL AREAS AND TRIBAL TRANSIT PROGRAM; AL No. 20.509, GRANT No’s 112761 AND 112626, YEAR ENDED JUNE 30, 2023 Criteria: Because the federal reimbursement rates are different for Operations, Administration and Maintenance, the general ledger accounts are separated into the cost categories that are reported to the granting agencies. Condition: The expenditures reported on the reimbursement reports filed with the granting agency did not agree with the county’s general ledger. Questioned Costs: None Cause: The county does not have preparation and review procedures to reconcile the amounts reported on the reimbursement requests to the general ledger accounting records. Effect: Incorrect reimbursement amounts were received. Recommendation: The county should develop a process to verify that amounts reported to the granting agency agree to the general ledger accounting records. Views of responsible officials and planned corrective actions: The government agrees with this finding and will adhere to the attached corrective action plan.

NONCOMPLIANCE WITH PROCUREMENT, SUSPENSION & DEBARMENT REQUIREMENTS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS; AL No. 21.027, YEAR ENDED JUNE 30 2023 Criteria: Per section 13 of Treasury’s Final Rule FAQs and 2 CFR 200.214, counties must comply with the procurement standards set forth in 2 CFR 200.318, through 2 CFR 200.327, when using their SLFRF award funds to procure goods and services to carry out the objectives of their SLFRF award. In addition, 2 CFR 200.214, prohibits recipients from using SLFRF funds to enter into subawards and contracts with parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs. Condition 1: The county did not verify that program recipients/participants were not suspended, debarred, or otherwise excluded from participation in the program. Condition 2: The county did not formally bid a water and sewer line extension project at the fairgrounds as required by federal procurement standards established in 2 CFR 300.19. Cause: The county does not have procurement policies and procedures in place that allows it to comply with procurement standards outlined in the Uniform Guidance. Effect: Non-compliance with program terms and conditions. Questioned Costs: None Recommendation: Management should develop procedures that will provide reasonable assurance that procurement of goods and services are made in compliance with applicable federal regulations and other procurement requirements specific to a federal award or subaward, and that no subaward, contract, or agreement for purchase of goods or services is made with any suspended or debarred party. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.

NONCOMPLIANCE WITH PROCUREMENT, SUSPENSION & DEBARMENT REQUIREMENTS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS; AL No. 21.027, YEAR ENDED JUNE 30 2023 Criteria: Per section 13 of Treasury’s Final Rule FAQs and 2 CFR 200.214, counties must comply with the procurement standards set forth in 2 CFR 200.318, through 2 CFR 200.327, when using their SLFRF award funds to procure goods and services to carry out the objectives of their SLFRF award. In addition, 2 CFR 200.214, prohibits recipients from using SLFRF funds to enter into subawards and contracts with parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs. Condition 1: The county did not verify that program recipients/participants were not suspended, debarred, or otherwise excluded from participation in the program. Condition 2: The county did not formally bid a water and sewer line extension project at the fairgrounds as required by federal procurement standards established in 2 CFR 300.19. Cause: The county does not have procurement policies and procedures in place that allows it to comply with procurement standards outlined in the Uniform Guidance. Effect: Non-compliance with program terms and conditions. Questioned Costs: None Recommendation: Management should develop procedures that will provide reasonable assurance that procurement of goods and services are made in compliance with applicable federal regulations and other procurement requirements specific to a federal award or subaward, and that no subaward, contract, or agreement for purchase of goods or services is made with any suspended or debarred party. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.

NONCOMPLIANCE WITH PROCUREMENT, SUSPENSION & DEBARMENT REQUIREMENTS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS; AL No. 21.027, YEAR ENDED JUNE 30 2023 Criteria: Per section 13 of Treasury’s Final Rule FAQs and 2 CFR 200.214, counties must comply with the procurement standards set forth in 2 CFR 200.318, through 2 CFR 200.327, when using their SLFRF award funds to procure goods and services to carry out the objectives of their SLFRF award. In addition, 2 CFR 200.214, prohibits recipients from using SLFRF funds to enter into subawards and contracts with parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs. Condition 1: The county did not verify that program recipients/participants were not suspended, debarred, or otherwise excluded from participation in the program. Condition 2: The county did not formally bid a water and sewer line extension project at the fairgrounds as required by federal procurement standards established in 2 CFR 300.19. Cause: The county does not have procurement policies and procedures in place that allows it to comply with procurement standards outlined in the Uniform Guidance. Effect: Non-compliance with program terms and conditions. Questioned Costs: None Recommendation: Management should develop procedures that will provide reasonable assurance that procurement of goods and services are made in compliance with applicable federal regulations and other procurement requirements specific to a federal award or subaward, and that no subaward, contract, or agreement for purchase of goods or services is made with any suspended or debarred party. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.