Audit 323296

Federal Program Disaster Grants – Public Assistance (97.036) Federal Award Number and Year – FEMA-4660-DR, 2022 & FEMA-4717-DR, 2023 Allowable Costs/Activities Allowed/Period of Performance Significant Deficiency Criteria A system of internal controls requires approval of all items expended that are used for grant purposes. Condition During testing, we noted 1 material charge-out transaction where the item taken out of inventory was not supported with a signed requisition slip. Cause Lack of oversight by management. Questioned Costs None Context We selected 40 transactions to test in a population of over 250. 3 of these transactions were for materials being taken out of inventory. One of these tests, we noted there was not a signed requisition slip for the removal of this item from inventory. Our sample was not statistically valid. Effect The County could have submitted inaccurate expenses for grant reimbursement. Repeat Finding No Recommendation The county should follow their procedures of using requisition slips when it comes to removing materials out of inventory. Views of Responsible Officials See Corrective Action Plan.

Federal Program Coronavirus State and Local Fiscal Recovery Funds (21.027) Federal Award Number and Year – SLFRP2882, 2021 Procurement, Suspension, and Debarment Material Weakness Criteria Uniform Guidance requires all non-federal entities, other than states must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. Non-federal entities are also prohibited from entering into a covered transaction equal to or exceeding $25,000 with a vendor who has been suspended or disbarred from receiving federal funds. Condition We noted during testing procurement, suspension, and debarment that the County doesn’t have a procurement policy that follows Uniform Guidance. We also noted during testing for suspension and debarment that 2 of our 2 vendors tested were not reviewed to ensure they were not suspended or disbarred from federal funds. Cause Lack of oversight by management. Questioned Costs None Context Uniform Guidance states “Review the non-federal entity’s procedures for verifying that an entity with which it plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded (2 CFR sections 200.212 and 200.318(h); 2 CFR section 180.300; 48 CFR section 52.2096)”. During this review, we noted that during our testing of procurement, suspension, and debarment that the County doesn’t have a procurement policy that follows Uniform Guidance. We also noted during testing for suspension and debarment that 2 of our 2 vendors tested were not reviewed to ensure they were not suspended or disbarred from federal funds. Effect The County has an increased risk of not being compliance with federal procurement requirements and increased risk of entering into a covered transaction with a vendor who is suspended or disbarred from federal funds. Repeat Finding Yes – see 2022-005 Recommendation The County should update their Procurement Policy to include suspension and debarment verbiage. Views of Responsible Officials See Corrective Action Plan.

Federal Program Disaster Grants – Public Assistance (97.036) Federal Award Number and Year – FEMA-4660-DR, 2022 & FEMA-4717-DR, 2023 Allowable Costs/Activities Allowed/Period of Performance Significant Deficiency Criteria A system of internal controls requires approval of all items expended that are used for grant purposes. Condition During testing, we noted 1 material charge-out transaction where the item taken out of inventory was not supported with a signed requisition slip. Cause Lack of oversight by management. Questioned Costs None Context We selected 40 transactions to test in a population of over 250. 3 of these transactions were for materials being taken out of inventory. One of these tests, we noted there was not a signed requisition slip for the removal of this item from inventory. Our sample was not statistically valid. Effect The County could have submitted inaccurate expenses for grant reimbursement. Repeat Finding No Recommendation The county should follow their procedures of using requisition slips when it comes to removing materials out of inventory. Views of Responsible Officials See Corrective Action Plan.

Federal Program Coronavirus State and Local Fiscal Recovery Funds (21.027) Federal Award Number and Year – SLFRP2882, 2021 Procurement, Suspension, and Debarment Material Weakness Criteria Uniform Guidance requires all non-federal entities, other than states must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. Non-federal entities are also prohibited from entering into a covered transaction equal to or exceeding $25,000 with a vendor who has been suspended or disbarred from receiving federal funds. Condition We noted during testing procurement, suspension, and debarment that the County doesn’t have a procurement policy that follows Uniform Guidance. We also noted during testing for suspension and debarment that 2 of our 2 vendors tested were not reviewed to ensure they were not suspended or disbarred from federal funds. Cause Lack of oversight by management. Questioned Costs None Context Uniform Guidance states “Review the non-federal entity’s procedures for verifying that an entity with which it plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded (2 CFR sections 200.212 and 200.318(h); 2 CFR section 180.300; 48 CFR section 52.2096)”. During this review, we noted that during our testing of procurement, suspension, and debarment that the County doesn’t have a procurement policy that follows Uniform Guidance. We also noted during testing for suspension and debarment that 2 of our 2 vendors tested were not reviewed to ensure they were not suspended or disbarred from federal funds. Effect The County has an increased risk of not being compliance with federal procurement requirements and increased risk of entering into a covered transaction with a vendor who is suspended or disbarred from federal funds. Repeat Finding Yes – see 2022-005 Recommendation The County should update their Procurement Policy to include suspension and debarment verbiage. Views of Responsible Officials See Corrective Action Plan.