Audit 303987

Finding 2023-002 21.027 – Coronavirus State and Local Fiscal Recovery Funds Noncompliance with Procurement, Suspension and Debarment and Material Weakness in Internal Controls Criteria: 2 CFR Part 200.320(a)(2)(i) indicates “If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate by the non-Federal entity.” Condition: The County did not obtain price or rate quotations from an adequate number of qualified sources for three of four purchases tested. Cause: The County did not obtain price and rate quotes. Effect: By not obtaining price or rate quotations, the County may pay more for goods and services than is necessary. Questioned Costs: $149,370 Recommendations: The County should establish and follow procurement policies and procedures to ensure the County adheres to requirements established by the Federal Government. Views of Responsible Officials: Hood River County is currently working on several updated policies. The U.S. government requires recipients of federal grants, such as Hood River County, to adhere to specific terms and conditions. The overarching requirement Hood River County must follow is the Office of Management and Budget’s Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, 2 CFR Part 200, referred to as Uniform Guidance. Hood River County is training personnel to be mindful of following this guidance when making purchases.

Finding 2023-002 21.027 – Coronavirus State and Local Fiscal Recovery Funds Noncompliance with Procurement, Suspension and Debarment and Material Weakness in Internal Controls Criteria: 2 CFR Part 200.320(a)(2)(i) indicates “If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate by the non-Federal entity.” Condition: The County did not obtain price or rate quotations from an adequate number of qualified sources for three of four purchases tested. Cause: The County did not obtain price and rate quotes. Effect: By not obtaining price or rate quotations, the County may pay more for goods and services than is necessary. Questioned Costs: $149,370 Recommendations: The County should establish and follow procurement policies and procedures to ensure the County adheres to requirements established by the Federal Government. Views of Responsible Officials: Hood River County is currently working on several updated policies. The U.S. government requires recipients of federal grants, such as Hood River County, to adhere to specific terms and conditions. The overarching requirement Hood River County must follow is the Office of Management and Budget’s Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, 2 CFR Part 200, referred to as Uniform Guidance. Hood River County is training personnel to be mindful of following this guidance when making purchases.

Finding 2023-003 21.027 – Coronavirus State and Local Fiscal Recovery Funds Noncompliance with Procurement Suspension and Debarment Criteria: 2 CFR Part 200.214 indicates “the regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended or otherwise excluded from or ineligible for participation in Federal assistance programs or activities”. Condition: The County did not maintain documentation or have appropriate processes and procedures in place to ensure that prior to awarding contracts to outside parties the suspended or debarred list was checked to ensure the potential awardee was not prohibited from receiving federal funds. Cause: The County did not have policies and procedures in place to ensure the suspended and debarred list was checked consistently nor did they retain documentation of the list being checked prior to contracts being awarded to awardees. Effect: The County could award contracts to suspended or debarred parties. Questioned Costs: $149,370 Recommendations: We recommend the County implement processes and procedures to ensure the suspended and debarred listing is checked prior to awarding contracts to outside parties. In addition, we recommend the County maintain documentation of this check being performed. Views of responsible officials: Hood River County is training personnel to check Sam.gov for debarment of vendors prior to contract negotiation. A second check point is when vendors are set up in the Finance department Accounts Payable system. Currently there are no Hood River County vendors who have been on the Federal debarment list.

Finding 2023-003 21.027 – Coronavirus State and Local Fiscal Recovery Funds Noncompliance with Procurement Suspension and Debarment Criteria: 2 CFR Part 200.214 indicates “the regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended or otherwise excluded from or ineligible for participation in Federal assistance programs or activities”. Condition: The County did not maintain documentation or have appropriate processes and procedures in place to ensure that prior to awarding contracts to outside parties the suspended or debarred list was checked to ensure the potential awardee was not prohibited from receiving federal funds. Cause: The County did not have policies and procedures in place to ensure the suspended and debarred list was checked consistently nor did they retain documentation of the list being checked prior to contracts being awarded to awardees. Effect: The County could award contracts to suspended or debarred parties. Questioned Costs: $149,370 Recommendations: We recommend the County implement processes and procedures to ensure the suspended and debarred listing is checked prior to awarding contracts to outside parties. In addition, we recommend the County maintain documentation of this check being performed. Views of responsible officials: Hood River County is training personnel to check Sam.gov for debarment of vendors prior to contract negotiation. A second check point is when vendors are set up in the Finance department Accounts Payable system. Currently there are no Hood River County vendors who have been on the Federal debarment list.

Finding 2023-002 21.027 – Coronavirus State and Local Fiscal Recovery Funds Noncompliance with Procurement, Suspension and Debarment and Material Weakness in Internal Controls Criteria: 2 CFR Part 200.320(a)(2)(i) indicates “If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate by the non-Federal entity.” Condition: The County did not obtain price or rate quotations from an adequate number of qualified sources for three of four purchases tested. Cause: The County did not obtain price and rate quotes. Effect: By not obtaining price or rate quotations, the County may pay more for goods and services than is necessary. Questioned Costs: $149,370 Recommendations: The County should establish and follow procurement policies and procedures to ensure the County adheres to requirements established by the Federal Government. Views of Responsible Officials: Hood River County is currently working on several updated policies. The U.S. government requires recipients of federal grants, such as Hood River County, to adhere to specific terms and conditions. The overarching requirement Hood River County must follow is the Office of Management and Budget’s Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, 2 CFR Part 200, referred to as Uniform Guidance. Hood River County is training personnel to be mindful of following this guidance when making purchases.

Finding 2023-002 21.027 – Coronavirus State and Local Fiscal Recovery Funds Noncompliance with Procurement, Suspension and Debarment and Material Weakness in Internal Controls Criteria: 2 CFR Part 200.320(a)(2)(i) indicates “If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate by the non-Federal entity.” Condition: The County did not obtain price or rate quotations from an adequate number of qualified sources for three of four purchases tested. Cause: The County did not obtain price and rate quotes. Effect: By not obtaining price or rate quotations, the County may pay more for goods and services than is necessary. Questioned Costs: $149,370 Recommendations: The County should establish and follow procurement policies and procedures to ensure the County adheres to requirements established by the Federal Government. Views of Responsible Officials: Hood River County is currently working on several updated policies. The U.S. government requires recipients of federal grants, such as Hood River County, to adhere to specific terms and conditions. The overarching requirement Hood River County must follow is the Office of Management and Budget’s Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, 2 CFR Part 200, referred to as Uniform Guidance. Hood River County is training personnel to be mindful of following this guidance when making purchases.

Finding 2023-003 21.027 – Coronavirus State and Local Fiscal Recovery Funds Noncompliance with Procurement Suspension and Debarment Criteria: 2 CFR Part 200.214 indicates “the regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended or otherwise excluded from or ineligible for participation in Federal assistance programs or activities”. Condition: The County did not maintain documentation or have appropriate processes and procedures in place to ensure that prior to awarding contracts to outside parties the suspended or debarred list was checked to ensure the potential awardee was not prohibited from receiving federal funds. Cause: The County did not have policies and procedures in place to ensure the suspended and debarred list was checked consistently nor did they retain documentation of the list being checked prior to contracts being awarded to awardees. Effect: The County could award contracts to suspended or debarred parties. Questioned Costs: $149,370 Recommendations: We recommend the County implement processes and procedures to ensure the suspended and debarred listing is checked prior to awarding contracts to outside parties. In addition, we recommend the County maintain documentation of this check being performed. Views of responsible officials: Hood River County is training personnel to check Sam.gov for debarment of vendors prior to contract negotiation. A second check point is when vendors are set up in the Finance department Accounts Payable system. Currently there are no Hood River County vendors who have been on the Federal debarment list.

Finding 2023-003 21.027 – Coronavirus State and Local Fiscal Recovery Funds Noncompliance with Procurement Suspension and Debarment Criteria: 2 CFR Part 200.214 indicates “the regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended or otherwise excluded from or ineligible for participation in Federal assistance programs or activities”. Condition: The County did not maintain documentation or have appropriate processes and procedures in place to ensure that prior to awarding contracts to outside parties the suspended or debarred list was checked to ensure the potential awardee was not prohibited from receiving federal funds. Cause: The County did not have policies and procedures in place to ensure the suspended and debarred list was checked consistently nor did they retain documentation of the list being checked prior to contracts being awarded to awardees. Effect: The County could award contracts to suspended or debarred parties. Questioned Costs: $149,370 Recommendations: We recommend the County implement processes and procedures to ensure the suspended and debarred listing is checked prior to awarding contracts to outside parties. In addition, we recommend the County maintain documentation of this check being performed. Views of responsible officials: Hood River County is training personnel to check Sam.gov for debarment of vendors prior to contract negotiation. A second check point is when vendors are set up in the Finance department Accounts Payable system. Currently there are no Hood River County vendors who have been on the Federal debarment list.