FAC Explorer

Audit 322444

FY End
2023-12-31
Total Expended
$14.12M
Findings
8
Programs
45
Organization: Manitowoc County (WI)
Year: 2023 Accepted: 2024-09-30
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
499583 2023-002 Material Weakness Yes I
499584 2023-002 Material Weakness Yes I
499585 2023-002 Material Weakness Yes I
499586 2023-002 Material Weakness Yes I
1076025 2023-002 Material Weakness Yes I
1076026 2023-002 Material Weakness Yes I
1076027 2023-002 Material Weakness Yes I
1076028 2023-002 Material Weakness Yes I

Programs

ALN Program Spent Major Findings
93.778 Medical Assistance Program $3.32M - 0
93.788 Opioid Str $760,209 Yes 1
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $361,348 - 0
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $279,213 - 0
93.563 Child Support Enforcement $171,246 Yes 0
93.575 Child Care and Development Block Grant $122,157 - 0
93.558 Temporary Assistance for Needy Families $114,282 - 0
97.042 Emergency Management Performance Grants $100,733 - 0
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $66,106 - 0
93.658 Foster Care_title IV-E $61,387 Yes 0
93.052 National Family Caregiver Support, Title Iii, Part E $55,769 - 0
93.069 Public Health Emergency Preparedness $53,718 - 0
21.032 Local Assistance and Tribal Consistency Fund $50,000 - 0
93.053 Nutrition Services Incentive Program $46,247 - 0
93.958 Block Grants for Community Mental Health Services $35,127 - 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $31,025 - 0
93.090 Guardianship Assistance $30,977 - 0
93.767 Children's Health Insurance Program $28,812 - 0
93.994 Maternal and Child Health Services Block Grant to the States $24,886 - 0
93.568 Low-Income Home Energy Assistance $21,360 - 0
11.419 Coastal Zone Management Administration Awards $19,440 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $19,178 Yes 1
93.324 State Health Insurance Assistance Program $18,513 - 0
93.071 Medicare Enrollment Assistance Program $18,107 - 0
93.268 Immunization Cooperative Agreements $17,960 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $14,327 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $12,756 - 0
16.710 Public Safety Partnership and Community Policing Grants $12,195 - 0
20.600 State and Community Highway Safety $10,535 - 0
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $10,528 - 0
93.667 Social Services Block Grant $10,029 - 0
66.032 State Indoor Radon Grants $8,883 - 0
20.601 Alcohol Impaired Driving Countermeasures Incentive Grants I $8,815 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $7,309 - 0
84.181 Special Education-Grants for Infants and Families $6,453 - 0
93.991 Preventive Health and Health Services Block Grant $5,705 - 0
93.747 Elder Abuse Prevention Interventions Program $5,117 - 0
93.967 Cdc's Collaboration with Academia to Strengthen Public Health $4,578 - 0
93.645 Stephanie Tubbs Jones Child Welfare Services Program $3,766 - 0
16.607 Bulletproof Vest Partnership Program $3,382 - 0
93.556 Promoting Safe and Stable Families $2,250 - 0
20.613 Child Safety and Child Booster Seats Incentive Grants $1,058 - 0
97.039 Hazard Mitigation Grant $547 - 0
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $0 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $0 - 0

Contacts

Name Title Type
M6K8EDH1SLN3 Jj Gutman Auditee
9206832740 Bryan Grunewald Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Revenues and expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the County’s 2023 fund financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and State Single Audit Guidelines. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the County in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded County expenditures. Because of subsequent program adjustments, these amounts may differ from the prior year’s ending balances. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The County has not elected to charge a de minimis rate of 10% of modified total costs. The accompanying schedules of expenditures of federal and state awards for the County are presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State Single Audit Guidelines issued by the Wisconsin Department of Administration. The schedules of expenditures of federal and state awards include all federal and state awards of the County. Because the schedules present only a selected portion of the operations of the County, it is not intended to and does not present the financial position, changes in net position, or cash flows of the County.
Title: OVERSIGHT AGENCIES Accounting Policies: Revenues and expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the County’s 2023 fund financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and State Single Audit Guidelines. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the County in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded County expenditures. Because of subsequent program adjustments, these amounts may differ from the prior year’s ending balances. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The County has not elected to charge a de minimis rate of 10% of modified total costs. The federal and state oversight agencies for the County are as follows: Federal – U.S. Department of Treasury State – Wisconsin Department of Health Services
Title: TITLE 19 MEDICAL ASSISTANCE PAYMENTS Accounting Policies: Revenues and expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the County’s 2023 fund financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and State Single Audit Guidelines. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the County in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded County expenditures. Because of subsequent program adjustments, these amounts may differ from the prior year’s ending balances. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The County has not elected to charge a de minimis rate of 10% of modified total costs. The schedules of expenditures of federal and state awards do not include repayments received by the County for Title 19 Medical Assistance programs. The payments are considered a contract for services between the state and the County and therefore are not reported as federal or state awards.
Title: STATE DIRECT PAYMENTS Accounting Policies: Revenues and expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the County’s 2023 fund financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and State Single Audit Guidelines. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the County in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded County expenditures. Because of subsequent program adjustments, these amounts may differ from the prior year’s ending balances. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The County has not elected to charge a de minimis rate of 10% of modified total costs. Payments made directly to recipients and vendors by the state of Wisconsin under the FoodShare Wisconsin program on behalf of the County are not included in the schedules of expenditures of federal and state awards.
Title: STATE OF WISCONSIN COMMUNITY AIDS REPORTING SYSTEM Accounting Policies: Revenues and expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the County’s 2023 fund financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and State Single Audit Guidelines. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the County in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded County expenditures. Because of subsequent program adjustments, these amounts may differ from the prior year’s ending balances. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The County has not elected to charge a de minimis rate of 10% of modified total costs. The Wisconsin Departments of Health Services (DHS) and Children and Families (DCF) utilize the Grant Enrollment, Application and Reporting System (GEARS) and the System for Payments and Reports of Contracts (SPARC) for reimbursing the County for various federal and state program expenditures. The expenditures reported on the schedules of expenditures of federal and state awards for various DHS & DCF programs agree with the expenditures reported on the June 2024 GEARS for the Human Services and Public Health Departments, and the December 2023 SPARC for Child Support and Child Care programs.

Finding Details

Finding 2023-002
Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Notification Number and Year: M6K8EDH1SLN3 - 2021 Award Period: March 3, 2021 – December 31, 2024 Compliance Requirement Affected: Suspension and Debarment Federal Agency: Department of Health and Human Services Federal Program Name: Opioid State Targeted Response Assistance Listing Number: 93.788 Federal Award Notification Number and Year: 435200-G23-36-310X3– 2023/2024 Award Period: September 30, 2022 – September 29, 2023 and September 30, 2023 – September 29, 2024 Section III – Federal Award Findings and Questioned Costs (CONTINUED) Compliance Requirement Affected: Suspension and Debarment Type of Finding: Material Weakness in Internal Control Over Compliance, (Other Matter) Criteria or Specific Requirement: 2 CFR 200 states that nonfederal 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 awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220). All nonprocurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: The County has established policies and procedures in place including related controls over suspension and debarment. However, the policies and procedures were not consistently followed to ensure compliance with requirements of Uniform Guidance. Questioned Costs: None Context: While performing audit procedures, it was noted that the County did not follow established policies regarding suspension and debarment and procedures to verify compliance were not documented. Seven transactions out of a sample of seven transactions were lacking appropriate documentation. Cause: While the County has policies to ensure they do not use suspended or disbarred vendor, there was no documentation maintained to support verification before entering into a covered transaction. Effect: The County could contract with a suspended or debarred vendor. Repeat Finding: Repeat of Finding 2022-002. Recommendation: We recommend the County follow their suspension and debarment policy which includes maintaining documentation related to suspension and debarment for covered transactions. Views of Responsible Officials: There is no disagreement with the finding.
Finding 2023-002
Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Notification Number and Year: M6K8EDH1SLN3 - 2021 Award Period: March 3, 2021 – December 31, 2024 Compliance Requirement Affected: Suspension and Debarment Federal Agency: Department of Health and Human Services Federal Program Name: Opioid State Targeted Response Assistance Listing Number: 93.788 Federal Award Notification Number and Year: 435200-G23-36-310X3– 2023/2024 Award Period: September 30, 2022 – September 29, 2023 and September 30, 2023 – September 29, 2024 Section III – Federal Award Findings and Questioned Costs (CONTINUED) Compliance Requirement Affected: Suspension and Debarment Type of Finding: Material Weakness in Internal Control Over Compliance, (Other Matter) Criteria or Specific Requirement: 2 CFR 200 states that nonfederal 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 awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220). All nonprocurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: The County has established policies and procedures in place including related controls over suspension and debarment. However, the policies and procedures were not consistently followed to ensure compliance with requirements of Uniform Guidance. Questioned Costs: None Context: While performing audit procedures, it was noted that the County did not follow established policies regarding suspension and debarment and procedures to verify compliance were not documented. Seven transactions out of a sample of seven transactions were lacking appropriate documentation. Cause: While the County has policies to ensure they do not use suspended or disbarred vendor, there was no documentation maintained to support verification before entering into a covered transaction. Effect: The County could contract with a suspended or debarred vendor. Repeat Finding: Repeat of Finding 2022-002. Recommendation: We recommend the County follow their suspension and debarment policy which includes maintaining documentation related to suspension and debarment for covered transactions. Views of Responsible Officials: There is no disagreement with the finding.
Finding 2023-002
Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Notification Number and Year: M6K8EDH1SLN3 - 2021 Award Period: March 3, 2021 – December 31, 2024 Compliance Requirement Affected: Suspension and Debarment Federal Agency: Department of Health and Human Services Federal Program Name: Opioid State Targeted Response Assistance Listing Number: 93.788 Federal Award Notification Number and Year: 435200-G23-36-310X3– 2023/2024 Award Period: September 30, 2022 – September 29, 2023 and September 30, 2023 – September 29, 2024 Section III – Federal Award Findings and Questioned Costs (CONTINUED) Compliance Requirement Affected: Suspension and Debarment Type of Finding: Material Weakness in Internal Control Over Compliance, (Other Matter) Criteria or Specific Requirement: 2 CFR 200 states that nonfederal 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 awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220). All nonprocurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: The County has established policies and procedures in place including related controls over suspension and debarment. However, the policies and procedures were not consistently followed to ensure compliance with requirements of Uniform Guidance. Questioned Costs: None Context: While performing audit procedures, it was noted that the County did not follow established policies regarding suspension and debarment and procedures to verify compliance were not documented. Seven transactions out of a sample of seven transactions were lacking appropriate documentation. Cause: While the County has policies to ensure they do not use suspended or disbarred vendor, there was no documentation maintained to support verification before entering into a covered transaction. Effect: The County could contract with a suspended or debarred vendor. Repeat Finding: Repeat of Finding 2022-002. Recommendation: We recommend the County follow their suspension and debarment policy which includes maintaining documentation related to suspension and debarment for covered transactions. Views of Responsible Officials: There is no disagreement with the finding.
Finding 2023-002
Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Notification Number and Year: M6K8EDH1SLN3 - 2021 Award Period: March 3, 2021 – December 31, 2024 Compliance Requirement Affected: Suspension and Debarment Federal Agency: Department of Health and Human Services Federal Program Name: Opioid State Targeted Response Assistance Listing Number: 93.788 Federal Award Notification Number and Year: 435200-G23-36-310X3– 2023/2024 Award Period: September 30, 2022 – September 29, 2023 and September 30, 2023 – September 29, 2024 Section III – Federal Award Findings and Questioned Costs (CONTINUED) Compliance Requirement Affected: Suspension and Debarment Type of Finding: Material Weakness in Internal Control Over Compliance, (Other Matter) Criteria or Specific Requirement: 2 CFR 200 states that nonfederal 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 awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220). All nonprocurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: The County has established policies and procedures in place including related controls over suspension and debarment. However, the policies and procedures were not consistently followed to ensure compliance with requirements of Uniform Guidance. Questioned Costs: None Context: While performing audit procedures, it was noted that the County did not follow established policies regarding suspension and debarment and procedures to verify compliance were not documented. Seven transactions out of a sample of seven transactions were lacking appropriate documentation. Cause: While the County has policies to ensure they do not use suspended or disbarred vendor, there was no documentation maintained to support verification before entering into a covered transaction. Effect: The County could contract with a suspended or debarred vendor. Repeat Finding: Repeat of Finding 2022-002. Recommendation: We recommend the County follow their suspension and debarment policy which includes maintaining documentation related to suspension and debarment for covered transactions. Views of Responsible Officials: There is no disagreement with the finding.
Finding 2023-002
Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Notification Number and Year: M6K8EDH1SLN3 - 2021 Award Period: March 3, 2021 – December 31, 2024 Compliance Requirement Affected: Suspension and Debarment Federal Agency: Department of Health and Human Services Federal Program Name: Opioid State Targeted Response Assistance Listing Number: 93.788 Federal Award Notification Number and Year: 435200-G23-36-310X3– 2023/2024 Award Period: September 30, 2022 – September 29, 2023 and September 30, 2023 – September 29, 2024 Section III – Federal Award Findings and Questioned Costs (CONTINUED) Compliance Requirement Affected: Suspension and Debarment Type of Finding: Material Weakness in Internal Control Over Compliance, (Other Matter) Criteria or Specific Requirement: 2 CFR 200 states that nonfederal 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 awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220). All nonprocurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: The County has established policies and procedures in place including related controls over suspension and debarment. However, the policies and procedures were not consistently followed to ensure compliance with requirements of Uniform Guidance. Questioned Costs: None Context: While performing audit procedures, it was noted that the County did not follow established policies regarding suspension and debarment and procedures to verify compliance were not documented. Seven transactions out of a sample of seven transactions were lacking appropriate documentation. Cause: While the County has policies to ensure they do not use suspended or disbarred vendor, there was no documentation maintained to support verification before entering into a covered transaction. Effect: The County could contract with a suspended or debarred vendor. Repeat Finding: Repeat of Finding 2022-002. Recommendation: We recommend the County follow their suspension and debarment policy which includes maintaining documentation related to suspension and debarment for covered transactions. Views of Responsible Officials: There is no disagreement with the finding.
Finding 2023-002
Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Notification Number and Year: M6K8EDH1SLN3 - 2021 Award Period: March 3, 2021 – December 31, 2024 Compliance Requirement Affected: Suspension and Debarment Federal Agency: Department of Health and Human Services Federal Program Name: Opioid State Targeted Response Assistance Listing Number: 93.788 Federal Award Notification Number and Year: 435200-G23-36-310X3– 2023/2024 Award Period: September 30, 2022 – September 29, 2023 and September 30, 2023 – September 29, 2024 Section III – Federal Award Findings and Questioned Costs (CONTINUED) Compliance Requirement Affected: Suspension and Debarment Type of Finding: Material Weakness in Internal Control Over Compliance, (Other Matter) Criteria or Specific Requirement: 2 CFR 200 states that nonfederal 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 awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220). All nonprocurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: The County has established policies and procedures in place including related controls over suspension and debarment. However, the policies and procedures were not consistently followed to ensure compliance with requirements of Uniform Guidance. Questioned Costs: None Context: While performing audit procedures, it was noted that the County did not follow established policies regarding suspension and debarment and procedures to verify compliance were not documented. Seven transactions out of a sample of seven transactions were lacking appropriate documentation. Cause: While the County has policies to ensure they do not use suspended or disbarred vendor, there was no documentation maintained to support verification before entering into a covered transaction. Effect: The County could contract with a suspended or debarred vendor. Repeat Finding: Repeat of Finding 2022-002. Recommendation: We recommend the County follow their suspension and debarment policy which includes maintaining documentation related to suspension and debarment for covered transactions. Views of Responsible Officials: There is no disagreement with the finding.
Finding 2023-002
Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Notification Number and Year: M6K8EDH1SLN3 - 2021 Award Period: March 3, 2021 – December 31, 2024 Compliance Requirement Affected: Suspension and Debarment Federal Agency: Department of Health and Human Services Federal Program Name: Opioid State Targeted Response Assistance Listing Number: 93.788 Federal Award Notification Number and Year: 435200-G23-36-310X3– 2023/2024 Award Period: September 30, 2022 – September 29, 2023 and September 30, 2023 – September 29, 2024 Section III – Federal Award Findings and Questioned Costs (CONTINUED) Compliance Requirement Affected: Suspension and Debarment Type of Finding: Material Weakness in Internal Control Over Compliance, (Other Matter) Criteria or Specific Requirement: 2 CFR 200 states that nonfederal 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 awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220). All nonprocurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: The County has established policies and procedures in place including related controls over suspension and debarment. However, the policies and procedures were not consistently followed to ensure compliance with requirements of Uniform Guidance. Questioned Costs: None Context: While performing audit procedures, it was noted that the County did not follow established policies regarding suspension and debarment and procedures to verify compliance were not documented. Seven transactions out of a sample of seven transactions were lacking appropriate documentation. Cause: While the County has policies to ensure they do not use suspended or disbarred vendor, there was no documentation maintained to support verification before entering into a covered transaction. Effect: The County could contract with a suspended or debarred vendor. Repeat Finding: Repeat of Finding 2022-002. Recommendation: We recommend the County follow their suspension and debarment policy which includes maintaining documentation related to suspension and debarment for covered transactions. Views of Responsible Officials: There is no disagreement with the finding.
Finding 2023-002
Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Notification Number and Year: M6K8EDH1SLN3 - 2021 Award Period: March 3, 2021 – December 31, 2024 Compliance Requirement Affected: Suspension and Debarment Federal Agency: Department of Health and Human Services Federal Program Name: Opioid State Targeted Response Assistance Listing Number: 93.788 Federal Award Notification Number and Year: 435200-G23-36-310X3– 2023/2024 Award Period: September 30, 2022 – September 29, 2023 and September 30, 2023 – September 29, 2024 Section III – Federal Award Findings and Questioned Costs (CONTINUED) Compliance Requirement Affected: Suspension and Debarment Type of Finding: Material Weakness in Internal Control Over Compliance, (Other Matter) Criteria or Specific Requirement: 2 CFR 200 states that nonfederal 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 awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220). All nonprocurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: The County has established policies and procedures in place including related controls over suspension and debarment. However, the policies and procedures were not consistently followed to ensure compliance with requirements of Uniform Guidance. Questioned Costs: None Context: While performing audit procedures, it was noted that the County did not follow established policies regarding suspension and debarment and procedures to verify compliance were not documented. Seven transactions out of a sample of seven transactions were lacking appropriate documentation. Cause: While the County has policies to ensure they do not use suspended or disbarred vendor, there was no documentation maintained to support verification before entering into a covered transaction. Effect: The County could contract with a suspended or debarred vendor. Repeat Finding: Repeat of Finding 2022-002. Recommendation: We recommend the County follow their suspension and debarment policy which includes maintaining documentation related to suspension and debarment for covered transactions. Views of Responsible Officials: There is no disagreement with the finding.