Audit 329956

FY End
2023-12-31
Total Expended
$28.37M
Findings
10
Programs
40
Organization: Portage County (OH)
Year: 2023 Accepted: 2024-11-26

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
512194 2023-001 Material Weakness Yes I
512195 2023-001 Material Weakness Yes I
512196 2023-001 Material Weakness Yes I
512197 2023-002 Material Weakness - L
512198 2023-002 Material Weakness - L
1088636 2023-001 Material Weakness Yes I
1088637 2023-001 Material Weakness Yes I
1088638 2023-001 Material Weakness Yes I
1088639 2023-002 Material Weakness - L
1088640 2023-002 Material Weakness - L

Programs

ALN Program Spent Major Findings
93.658 Foster Care Title IV-E $790,481 - 0
17.259 Wioa Youth Activities $497,414 Yes 0
93.788 Opioid Str $334,932 Yes 1
17.278 Wioa Dislocated Worker Formula Grants $289,450 Yes 0
16.585 Treatment Court Discretionary Grant Program $208,070 - 0
97.042 Emergency Management Performance Grants $112,263 - 0
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $107,866 - 0
93.575 Child Care and Development Block Grant $105,695 - 0
93.667 Social Services Block Grant $88,063 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $52,422 - 0
17.277 Wioa National Dislocated Worker Grants / Wia National Emergency Grants $49,241 Yes 0
16.588 Violence Against Women Formula Grants $46,667 - 0
17.258 Wioa Adult Program $46,619 Yes 0
84.181 Special Education-Grants for Infants and Families $45,387 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $37,832 Yes 0
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $33,615 - 0
21.019 Coronavirus Relief Fund $31,200 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $27,074 Yes 1
20.703 Interagency Hazardous Materials Public Sector Training and Planning Grants $25,180 - 0
93.747 Elder Abuse Prevention Interventions Program $23,014 - 0
16.922 Equitable Sharing Program $21,573 - 0
93.958 Block Grants for Community Mental Health Services $20,573 - 0
97.067 Homeland Security Grant Program $17,800 - 0
17.225 Unemployment Insurance $14,675 Yes 0
90.404 Hava Election Security Grants $8,532 - 0
20.205 Highway Planning and Construction $8,473 - 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $7,015 - 0
84.027 Special Education Grants to States $6,803 - 0
20.600 State and Community Highway Safety $5,850 - 0
93.645 Stephanie Tubbs Jones Child Welfare Services Program $5,814 - 0
93.472 Title IV-E Prevention Program $5,108 - 0
93.556 Marylee Allen Promoting Safe and Stable Families Program $3,150 - 0
93.471 Title IV-E Kinship Navigator Program $2,705 - 0
16.575 Crime Victim Assistance $2,540 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $2,122 Yes 0
93.778 Medical Assistance Program $2,036 Yes 0
93.659 Adoption Assistance $1,795 - 0
93.558 Temporary Assistance for Needy Families $1,000 - 0
93.563 Child Support Services $690 - 0
93.767 Children's Health Insurance Program $530 - 0

Contacts

Name Title Type
GJBLUZ9B54C9 Matt Kelly Auditee
3302973561 Stephen M. Bertsch Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: EXPENDITURES REPORTED ON THE SCHEDULE ARE REPORTED ON THE CASH BASIS OF ACCOUNTING. SUCH EXPENDITURES ARE RECOGONIZED FOLLOWING THE COST PRINCIPLES CONTAINED IN UNIFORM GUIDANCE WHEREIN CERTAIN EXPENDITURES MAY OR MAY NOT BE ALLOWABLE OR MAY BE LIMITED AS TO REIMBURSEMENT. De Minimis Rate Used: N Rate Explanation: THE AUDITEE DID NOT USE THE DE MINIMIS COST RATE. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Portage County (the County) under programs of the federal government for the year ended December 31, 2023. The information on this Schedule is prepared 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). Because the Schedule presents 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: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: EXPENDITURES REPORTED ON THE SCHEDULE ARE REPORTED ON THE CASH BASIS OF ACCOUNTING. SUCH EXPENDITURES ARE RECOGONIZED FOLLOWING THE COST PRINCIPLES CONTAINED IN UNIFORM GUIDANCE WHEREIN CERTAIN EXPENDITURES MAY OR MAY NOT BE ALLOWABLE OR MAY BE LIMITED AS TO REIMBURSEMENT. De Minimis Rate Used: N Rate Explanation: THE AUDITEE DID NOT USE THE DE MINIMIS COST RATE. Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement.
Title: INDIRECT COST RATE Accounting Policies: EXPENDITURES REPORTED ON THE SCHEDULE ARE REPORTED ON THE CASH BASIS OF ACCOUNTING. SUCH EXPENDITURES ARE RECOGONIZED FOLLOWING THE COST PRINCIPLES CONTAINED IN UNIFORM GUIDANCE WHEREIN CERTAIN EXPENDITURES MAY OR MAY NOT BE ALLOWABLE OR MAY BE LIMITED AS TO REIMBURSEMENT. De Minimis Rate Used: N Rate Explanation: THE AUDITEE DID NOT USE THE DE MINIMIS COST RATE. The County has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: SUBRECIPIENTS Accounting Policies: EXPENDITURES REPORTED ON THE SCHEDULE ARE REPORTED ON THE CASH BASIS OF ACCOUNTING. SUCH EXPENDITURES ARE RECOGONIZED FOLLOWING THE COST PRINCIPLES CONTAINED IN UNIFORM GUIDANCE WHEREIN CERTAIN EXPENDITURES MAY OR MAY NOT BE ALLOWABLE OR MAY BE LIMITED AS TO REIMBURSEMENT. De Minimis Rate Used: N Rate Explanation: THE AUDITEE DID NOT USE THE DE MINIMIS COST RATE. The County passes certain federal awards received from the U.S. Department of Health and Human Services to other governments or not-for-profit agencies (subrecipients). As Note B describes the County reports expenditures of Federal awards to subrecipients when paid in cash .As a Pass-through entity, the County has certain compliance responsibilities, such as monitoring its subrecipients to help assure they use these subawards as authorized by laws, regulations, and the provisions of contracts or grant agreements, and that subrecipients achieve the award’s performance goals.
Title: SNAP CLUSTER Accounting Policies: EXPENDITURES REPORTED ON THE SCHEDULE ARE REPORTED ON THE CASH BASIS OF ACCOUNTING. SUCH EXPENDITURES ARE RECOGONIZED FOLLOWING THE COST PRINCIPLES CONTAINED IN UNIFORM GUIDANCE WHEREIN CERTAIN EXPENDITURES MAY OR MAY NOT BE ALLOWABLE OR MAY BE LIMITED AS TO REIMBURSEMENT. De Minimis Rate Used: N Rate Explanation: THE AUDITEE DID NOT USE THE DE MINIMIS COST RATE. The County commingles cash receipts from the U.S. Department of Agriculture with similar State grants. When reporting expenditures on this Schedule, the County assumes it expends federal monies first.
Title: COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) REVOLVING LOAN PROGRAMS WITHOUT CONTINUING COMPLIANCE REQUIREMENTS Accounting Policies: EXPENDITURES REPORTED ON THE SCHEDULE ARE REPORTED ON THE CASH BASIS OF ACCOUNTING. SUCH EXPENDITURES ARE RECOGONIZED FOLLOWING THE COST PRINCIPLES CONTAINED IN UNIFORM GUIDANCE WHEREIN CERTAIN EXPENDITURES MAY OR MAY NOT BE ALLOWABLE OR MAY BE LIMITED AS TO REIMBURSEMENT. De Minimis Rate Used: N Rate Explanation: THE AUDITEE DID NOT USE THE DE MINIMIS COST RATE. The County has a revolving loan fund (RLF) program to provide low-interest loans to businesses to create jobs for low to moderate income persons and also to lend money to eligible persons to rehabilitate homes. The federal Department of Housing and Urban Development (HUD) grants money for these loans to the County, passed through the Ohio Developmental Services Agency. The Schedule reports loans made as disbursements on the Schedule. Subsequent loans are subject to the same compliance requirements imposed by HUD as the initial loans. These loans are collateralized by mortgage on the property and by liens recorded with the County.
Title: MATCHING REQUIREMENTS Accounting Policies: EXPENDITURES REPORTED ON THE SCHEDULE ARE REPORTED ON THE CASH BASIS OF ACCOUNTING. SUCH EXPENDITURES ARE RECOGONIZED FOLLOWING THE COST PRINCIPLES CONTAINED IN UNIFORM GUIDANCE WHEREIN CERTAIN EXPENDITURES MAY OR MAY NOT BE ALLOWABLE OR MAY BE LIMITED AS TO REIMBURSEMENT. De Minimis Rate Used: N Rate Explanation: THE AUDITEE DID NOT USE THE DE MINIMIS COST RATE. Certain Federal programs require the County to contribute non-Federal funds (matching funds) to support the Federally-funded programs. The County has met its matching requirements. The Schedule does not include the expenditure of non-Federal matching funds.

Finding Details

The U.S. Department of the Treasury Coronavirus State and Local Fiscal Recovery Funds Award Terms and Conditions signed by the County includes, in Section 9(b), that the award is subject to 2 CFR Part 180 and Treasury’s implementing regulation at 31 CFR Part 19. 2 CFR 180.305 states that Non-Federal entities are prohibited from entering into a covered transaction with parties that are suspended or debarred or whose principals are suspended or debarred, unless the Federal agency responsible for the transaction grants an exception under 2 CFR § 180.135. 2 CFR 180.200 identifies “covered transactions” as nonprocurement or procurement transactions at the primary tier, between a Federal agency and a person; or at the lower tier, between a participant in a covered transaction and another person. Procurement contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) are covered transactions if the contracts are expected to equal or exceed $25,000 or meet certain other specified criteria outlined in 2 CFR § 180.220. All nonprocurement transactions (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless exempt by 2 CFR § 180.215. When a non-Federal entity enters into a covered transaction, the non-Federal entity must verify that the entity is not suspended or debarred or otherwise excluded. This verification may be accomplished by checking SAM exclusions (https://sam.gov ); collecting a certification from the entity, or adding a clause or condition to the covered transactions with that entity. 31 CFR Part 19 has analogous provisions to 2 CFR Part 180. 31 CFR § 19.100 states that Part 19 adopts a governmentwide system of debarment and suspension for Department of Treasury nonprocurement activities. 31 CFR § 19.305 prohibits participants from entering into a covered transaction with an excluded person unless the Department of Treasury grants an exception and prohibits participants from entering into any transaction with a disqualified person unless the participant has obtained an exception under the disqualifying statute, Executive order, or regulation. 31 CFR § 19.200 identifies “covered transactions” as nonprocurement or procurement transactions at the primary tier, between a Federal agency and a person; or at a lower tier, between a participant in a covered transaction and another person. 31 CFR § 19.220(b)(1) specifically provides that a contract for goods or services is a covered transaction if the contract is awarded by a participant in a nonprocurement transaction covered under § 19.210, and the amount of the contract is expected to equal or exceed $25,000. Under 31 CFR § 19.210, all nonprocurement transactions, as defined in § 19.970, are covered transactions unless listed in § 19.215. 31 CFR § 19.300 provides that when entering into a covered transaction with another person at the next lower tier, the participant must verify that the person at the lower tier is not excluded or disqualified. This may be done by checking the EPLS (Excluded Parties List System), collecting a certification from that person if allowed by this rule, or adding a clause or condition to the covered transaction with that person. The County did not have the proper internal controls in place to verify that all entities, with whom the County had entered into covered transactions, had not been suspended or debarred. During testing of non-payroll expenditures for the Coronavirus State and Local Fiscal Recovery Funds, we noted three instances in which the program had a payment or contract to a vendor of more than $25,000 and there was no evidence the County checked the SAM exclusions, collected a certification from the entity, or added a clause or condition to the covered transaction with the vendor prior to payment issuance. Due to the deficient internal control structure, the required verifications were not completed for the three covered transaction in the Coronavirus State and Local Fiscal Recovery Funds until November, 2023, which was after the vendor payments were issued. Failing to have adequate controls in place may result in vendors receiving federal funds that are suspended or debarred. Prior to contracting with vendors that will be paid with federal funds, the County should verify the vendor is not suspended or debarred by checking the SAM exclusions, collecting a certification from the vendor, or adding a clause or condition to the covered transaction with the vendor.
The U.S. Department of the Treasury Coronavirus State and Local Fiscal Recovery Funds Award Terms and Conditions signed by the County includes, in Section 9(b), that the award is subject to 2 CFR Part 180 and Treasury’s implementing regulation at 31 CFR Part 19. 2 CFR 180.305 states that Non-Federal entities are prohibited from entering into a covered transaction with parties that are suspended or debarred or whose principals are suspended or debarred, unless the Federal agency responsible for the transaction grants an exception under 2 CFR § 180.135. 2 CFR 180.200 identifies “covered transactions” as nonprocurement or procurement transactions at the primary tier, between a Federal agency and a person; or at the lower tier, between a participant in a covered transaction and another person. Procurement contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) are covered transactions if the contracts are expected to equal or exceed $25,000 or meet certain other specified criteria outlined in 2 CFR § 180.220. All nonprocurement transactions (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless exempt by 2 CFR § 180.215. When a non-Federal entity enters into a covered transaction, the non-Federal entity must verify that the entity is not suspended or debarred or otherwise excluded. This verification may be accomplished by checking SAM exclusions (https://sam.gov ); collecting a certification from the entity, or adding a clause or condition to the covered transactions with that entity. 31 CFR Part 19 has analogous provisions to 2 CFR Part 180. 31 CFR § 19.100 states that Part 19 adopts a governmentwide system of debarment and suspension for Department of Treasury nonprocurement activities. 31 CFR § 19.305 prohibits participants from entering into a covered transaction with an excluded person unless the Department of Treasury grants an exception and prohibits participants from entering into any transaction with a disqualified person unless the participant has obtained an exception under the disqualifying statute, Executive order, or regulation. 31 CFR § 19.200 identifies “covered transactions” as nonprocurement or procurement transactions at the primary tier, between a Federal agency and a person; or at a lower tier, between a participant in a covered transaction and another person. 31 CFR § 19.220(b)(1) specifically provides that a contract for goods or services is a covered transaction if the contract is awarded by a participant in a nonprocurement transaction covered under § 19.210, and the amount of the contract is expected to equal or exceed $25,000. Under 31 CFR § 19.210, all nonprocurement transactions, as defined in § 19.970, are covered transactions unless listed in § 19.215. 31 CFR § 19.300 provides that when entering into a covered transaction with another person at the next lower tier, the participant must verify that the person at the lower tier is not excluded or disqualified. This may be done by checking the EPLS (Excluded Parties List System), collecting a certification from that person if allowed by this rule, or adding a clause or condition to the covered transaction with that person. The County did not have the proper internal controls in place to verify that all entities, with whom the County had entered into covered transactions, had not been suspended or debarred. During testing of non-payroll expenditures for the Coronavirus State and Local Fiscal Recovery Funds, we noted three instances in which the program had a payment or contract to a vendor of more than $25,000 and there was no evidence the County checked the SAM exclusions, collected a certification from the entity, or added a clause or condition to the covered transaction with the vendor prior to payment issuance. Due to the deficient internal control structure, the required verifications were not completed for the three covered transaction in the Coronavirus State and Local Fiscal Recovery Funds until November, 2023, which was after the vendor payments were issued. Failing to have adequate controls in place may result in vendors receiving federal funds that are suspended or debarred. Prior to contracting with vendors that will be paid with federal funds, the County should verify the vendor is not suspended or debarred by checking the SAM exclusions, collecting a certification from the vendor, or adding a clause or condition to the covered transaction with the vendor.
The U.S. Department of the Treasury Coronavirus State and Local Fiscal Recovery Funds Award Terms and Conditions signed by the County includes, in Section 9(b), that the award is subject to 2 CFR Part 180 and Treasury’s implementing regulation at 31 CFR Part 19. 2 CFR 180.305 states that Non-Federal entities are prohibited from entering into a covered transaction with parties that are suspended or debarred or whose principals are suspended or debarred, unless the Federal agency responsible for the transaction grants an exception under 2 CFR § 180.135. 2 CFR 180.200 identifies “covered transactions” as nonprocurement or procurement transactions at the primary tier, between a Federal agency and a person; or at the lower tier, between a participant in a covered transaction and another person. Procurement contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) are covered transactions if the contracts are expected to equal or exceed $25,000 or meet certain other specified criteria outlined in 2 CFR § 180.220. All nonprocurement transactions (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless exempt by 2 CFR § 180.215. When a non-Federal entity enters into a covered transaction, the non-Federal entity must verify that the entity is not suspended or debarred or otherwise excluded. This verification may be accomplished by checking SAM exclusions (https://sam.gov ); collecting a certification from the entity, or adding a clause or condition to the covered transactions with that entity. 31 CFR Part 19 has analogous provisions to 2 CFR Part 180. 31 CFR § 19.100 states that Part 19 adopts a governmentwide system of debarment and suspension for Department of Treasury nonprocurement activities. 31 CFR § 19.305 prohibits participants from entering into a covered transaction with an excluded person unless the Department of Treasury grants an exception and prohibits participants from entering into any transaction with a disqualified person unless the participant has obtained an exception under the disqualifying statute, Executive order, or regulation. 31 CFR § 19.200 identifies “covered transactions” as nonprocurement or procurement transactions at the primary tier, between a Federal agency and a person; or at a lower tier, between a participant in a covered transaction and another person. 31 CFR § 19.220(b)(1) specifically provides that a contract for goods or services is a covered transaction if the contract is awarded by a participant in a nonprocurement transaction covered under § 19.210, and the amount of the contract is expected to equal or exceed $25,000. Under 31 CFR § 19.210, all nonprocurement transactions, as defined in § 19.970, are covered transactions unless listed in § 19.215. 31 CFR § 19.300 provides that when entering into a covered transaction with another person at the next lower tier, the participant must verify that the person at the lower tier is not excluded or disqualified. This may be done by checking the EPLS (Excluded Parties List System), collecting a certification from that person if allowed by this rule, or adding a clause or condition to the covered transaction with that person. The County did not have the proper internal controls in place to verify that all entities, with whom the County had entered into covered transactions, had not been suspended or debarred. During testing of non-payroll expenditures for the Coronavirus State and Local Fiscal Recovery Funds, we noted three instances in which the program had a payment or contract to a vendor of more than $25,000 and there was no evidence the County checked the SAM exclusions, collected a certification from the entity, or added a clause or condition to the covered transaction with the vendor prior to payment issuance. Due to the deficient internal control structure, the required verifications were not completed for the three covered transaction in the Coronavirus State and Local Fiscal Recovery Funds until November, 2023, which was after the vendor payments were issued. Failing to have adequate controls in place may result in vendors receiving federal funds that are suspended or debarred. Prior to contracting with vendors that will be paid with federal funds, the County should verify the vendor is not suspended or debarred by checking the SAM exclusions, collecting a certification from the vendor, or adding a clause or condition to the covered transaction with the vendor.
2 C.F.R. § 200.328 states, in part, this information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. The Mental Health and Recovery Board of Portage County failed to submit the final expenditures report to the Ohio Department of Mental Health and Addiction Services for both awards under the State Opioid Response Grant Program. The reports were subsequently filed on October 21, 2024, 342 days after the required due date. This is the result of the County not having effective internal controls over reporting requirements. Noncompliance with grant requirements could have an adverse effect on future grant awards by the awarding agency. The County did not have effective internal controls to help ensure that all reporting requirements were met as required by the grant agreement. The lack of internal controls could result in the County failing to track grants appropriately, as well as, submitting late and/or inaccurate reports leading to further noncompliance.
2 C.F.R. § 200.328 states, in part, this information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. The Mental Health and Recovery Board of Portage County failed to submit the final expenditures report to the Ohio Department of Mental Health and Addiction Services for both awards under the State Opioid Response Grant Program. The reports were subsequently filed on October 21, 2024, 342 days after the required due date. This is the result of the County not having effective internal controls over reporting requirements. Noncompliance with grant requirements could have an adverse effect on future grant awards by the awarding agency. The County did not have effective internal controls to help ensure that all reporting requirements were met as required by the grant agreement. The lack of internal controls could result in the County failing to track grants appropriately, as well as, submitting late and/or inaccurate reports leading to further noncompliance.
The U.S. Department of the Treasury Coronavirus State and Local Fiscal Recovery Funds Award Terms and Conditions signed by the County includes, in Section 9(b), that the award is subject to 2 CFR Part 180 and Treasury’s implementing regulation at 31 CFR Part 19. 2 CFR 180.305 states that Non-Federal entities are prohibited from entering into a covered transaction with parties that are suspended or debarred or whose principals are suspended or debarred, unless the Federal agency responsible for the transaction grants an exception under 2 CFR § 180.135. 2 CFR 180.200 identifies “covered transactions” as nonprocurement or procurement transactions at the primary tier, between a Federal agency and a person; or at the lower tier, between a participant in a covered transaction and another person. Procurement contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) are covered transactions if the contracts are expected to equal or exceed $25,000 or meet certain other specified criteria outlined in 2 CFR § 180.220. All nonprocurement transactions (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless exempt by 2 CFR § 180.215. When a non-Federal entity enters into a covered transaction, the non-Federal entity must verify that the entity is not suspended or debarred or otherwise excluded. This verification may be accomplished by checking SAM exclusions (https://sam.gov ); collecting a certification from the entity, or adding a clause or condition to the covered transactions with that entity. 31 CFR Part 19 has analogous provisions to 2 CFR Part 180. 31 CFR § 19.100 states that Part 19 adopts a governmentwide system of debarment and suspension for Department of Treasury nonprocurement activities. 31 CFR § 19.305 prohibits participants from entering into a covered transaction with an excluded person unless the Department of Treasury grants an exception and prohibits participants from entering into any transaction with a disqualified person unless the participant has obtained an exception under the disqualifying statute, Executive order, or regulation. 31 CFR § 19.200 identifies “covered transactions” as nonprocurement or procurement transactions at the primary tier, between a Federal agency and a person; or at a lower tier, between a participant in a covered transaction and another person. 31 CFR § 19.220(b)(1) specifically provides that a contract for goods or services is a covered transaction if the contract is awarded by a participant in a nonprocurement transaction covered under § 19.210, and the amount of the contract is expected to equal or exceed $25,000. Under 31 CFR § 19.210, all nonprocurement transactions, as defined in § 19.970, are covered transactions unless listed in § 19.215. 31 CFR § 19.300 provides that when entering into a covered transaction with another person at the next lower tier, the participant must verify that the person at the lower tier is not excluded or disqualified. This may be done by checking the EPLS (Excluded Parties List System), collecting a certification from that person if allowed by this rule, or adding a clause or condition to the covered transaction with that person. The County did not have the proper internal controls in place to verify that all entities, with whom the County had entered into covered transactions, had not been suspended or debarred. During testing of non-payroll expenditures for the Coronavirus State and Local Fiscal Recovery Funds, we noted three instances in which the program had a payment or contract to a vendor of more than $25,000 and there was no evidence the County checked the SAM exclusions, collected a certification from the entity, or added a clause or condition to the covered transaction with the vendor prior to payment issuance. Due to the deficient internal control structure, the required verifications were not completed for the three covered transaction in the Coronavirus State and Local Fiscal Recovery Funds until November, 2023, which was after the vendor payments were issued. Failing to have adequate controls in place may result in vendors receiving federal funds that are suspended or debarred. Prior to contracting with vendors that will be paid with federal funds, the County should verify the vendor is not suspended or debarred by checking the SAM exclusions, collecting a certification from the vendor, or adding a clause or condition to the covered transaction with the vendor.
The U.S. Department of the Treasury Coronavirus State and Local Fiscal Recovery Funds Award Terms and Conditions signed by the County includes, in Section 9(b), that the award is subject to 2 CFR Part 180 and Treasury’s implementing regulation at 31 CFR Part 19. 2 CFR 180.305 states that Non-Federal entities are prohibited from entering into a covered transaction with parties that are suspended or debarred or whose principals are suspended or debarred, unless the Federal agency responsible for the transaction grants an exception under 2 CFR § 180.135. 2 CFR 180.200 identifies “covered transactions” as nonprocurement or procurement transactions at the primary tier, between a Federal agency and a person; or at the lower tier, between a participant in a covered transaction and another person. Procurement contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) are covered transactions if the contracts are expected to equal or exceed $25,000 or meet certain other specified criteria outlined in 2 CFR § 180.220. All nonprocurement transactions (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless exempt by 2 CFR § 180.215. When a non-Federal entity enters into a covered transaction, the non-Federal entity must verify that the entity is not suspended or debarred or otherwise excluded. This verification may be accomplished by checking SAM exclusions (https://sam.gov ); collecting a certification from the entity, or adding a clause or condition to the covered transactions with that entity. 31 CFR Part 19 has analogous provisions to 2 CFR Part 180. 31 CFR § 19.100 states that Part 19 adopts a governmentwide system of debarment and suspension for Department of Treasury nonprocurement activities. 31 CFR § 19.305 prohibits participants from entering into a covered transaction with an excluded person unless the Department of Treasury grants an exception and prohibits participants from entering into any transaction with a disqualified person unless the participant has obtained an exception under the disqualifying statute, Executive order, or regulation. 31 CFR § 19.200 identifies “covered transactions” as nonprocurement or procurement transactions at the primary tier, between a Federal agency and a person; or at a lower tier, between a participant in a covered transaction and another person. 31 CFR § 19.220(b)(1) specifically provides that a contract for goods or services is a covered transaction if the contract is awarded by a participant in a nonprocurement transaction covered under § 19.210, and the amount of the contract is expected to equal or exceed $25,000. Under 31 CFR § 19.210, all nonprocurement transactions, as defined in § 19.970, are covered transactions unless listed in § 19.215. 31 CFR § 19.300 provides that when entering into a covered transaction with another person at the next lower tier, the participant must verify that the person at the lower tier is not excluded or disqualified. This may be done by checking the EPLS (Excluded Parties List System), collecting a certification from that person if allowed by this rule, or adding a clause or condition to the covered transaction with that person. The County did not have the proper internal controls in place to verify that all entities, with whom the County had entered into covered transactions, had not been suspended or debarred. During testing of non-payroll expenditures for the Coronavirus State and Local Fiscal Recovery Funds, we noted three instances in which the program had a payment or contract to a vendor of more than $25,000 and there was no evidence the County checked the SAM exclusions, collected a certification from the entity, or added a clause or condition to the covered transaction with the vendor prior to payment issuance. Due to the deficient internal control structure, the required verifications were not completed for the three covered transaction in the Coronavirus State and Local Fiscal Recovery Funds until November, 2023, which was after the vendor payments were issued. Failing to have adequate controls in place may result in vendors receiving federal funds that are suspended or debarred. Prior to contracting with vendors that will be paid with federal funds, the County should verify the vendor is not suspended or debarred by checking the SAM exclusions, collecting a certification from the vendor, or adding a clause or condition to the covered transaction with the vendor.
The U.S. Department of the Treasury Coronavirus State and Local Fiscal Recovery Funds Award Terms and Conditions signed by the County includes, in Section 9(b), that the award is subject to 2 CFR Part 180 and Treasury’s implementing regulation at 31 CFR Part 19. 2 CFR 180.305 states that Non-Federal entities are prohibited from entering into a covered transaction with parties that are suspended or debarred or whose principals are suspended or debarred, unless the Federal agency responsible for the transaction grants an exception under 2 CFR § 180.135. 2 CFR 180.200 identifies “covered transactions” as nonprocurement or procurement transactions at the primary tier, between a Federal agency and a person; or at the lower tier, between a participant in a covered transaction and another person. Procurement contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) are covered transactions if the contracts are expected to equal or exceed $25,000 or meet certain other specified criteria outlined in 2 CFR § 180.220. All nonprocurement transactions (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless exempt by 2 CFR § 180.215. When a non-Federal entity enters into a covered transaction, the non-Federal entity must verify that the entity is not suspended or debarred or otherwise excluded. This verification may be accomplished by checking SAM exclusions (https://sam.gov ); collecting a certification from the entity, or adding a clause or condition to the covered transactions with that entity. 31 CFR Part 19 has analogous provisions to 2 CFR Part 180. 31 CFR § 19.100 states that Part 19 adopts a governmentwide system of debarment and suspension for Department of Treasury nonprocurement activities. 31 CFR § 19.305 prohibits participants from entering into a covered transaction with an excluded person unless the Department of Treasury grants an exception and prohibits participants from entering into any transaction with a disqualified person unless the participant has obtained an exception under the disqualifying statute, Executive order, or regulation. 31 CFR § 19.200 identifies “covered transactions” as nonprocurement or procurement transactions at the primary tier, between a Federal agency and a person; or at a lower tier, between a participant in a covered transaction and another person. 31 CFR § 19.220(b)(1) specifically provides that a contract for goods or services is a covered transaction if the contract is awarded by a participant in a nonprocurement transaction covered under § 19.210, and the amount of the contract is expected to equal or exceed $25,000. Under 31 CFR § 19.210, all nonprocurement transactions, as defined in § 19.970, are covered transactions unless listed in § 19.215. 31 CFR § 19.300 provides that when entering into a covered transaction with another person at the next lower tier, the participant must verify that the person at the lower tier is not excluded or disqualified. This may be done by checking the EPLS (Excluded Parties List System), collecting a certification from that person if allowed by this rule, or adding a clause or condition to the covered transaction with that person. The County did not have the proper internal controls in place to verify that all entities, with whom the County had entered into covered transactions, had not been suspended or debarred. During testing of non-payroll expenditures for the Coronavirus State and Local Fiscal Recovery Funds, we noted three instances in which the program had a payment or contract to a vendor of more than $25,000 and there was no evidence the County checked the SAM exclusions, collected a certification from the entity, or added a clause or condition to the covered transaction with the vendor prior to payment issuance. Due to the deficient internal control structure, the required verifications were not completed for the three covered transaction in the Coronavirus State and Local Fiscal Recovery Funds until November, 2023, which was after the vendor payments were issued. Failing to have adequate controls in place may result in vendors receiving federal funds that are suspended or debarred. Prior to contracting with vendors that will be paid with federal funds, the County should verify the vendor is not suspended or debarred by checking the SAM exclusions, collecting a certification from the vendor, or adding a clause or condition to the covered transaction with the vendor.
2 C.F.R. § 200.328 states, in part, this information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. The Mental Health and Recovery Board of Portage County failed to submit the final expenditures report to the Ohio Department of Mental Health and Addiction Services for both awards under the State Opioid Response Grant Program. The reports were subsequently filed on October 21, 2024, 342 days after the required due date. This is the result of the County not having effective internal controls over reporting requirements. Noncompliance with grant requirements could have an adverse effect on future grant awards by the awarding agency. The County did not have effective internal controls to help ensure that all reporting requirements were met as required by the grant agreement. The lack of internal controls could result in the County failing to track grants appropriately, as well as, submitting late and/or inaccurate reports leading to further noncompliance.
2 C.F.R. § 200.328 states, in part, this information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. The Mental Health and Recovery Board of Portage County failed to submit the final expenditures report to the Ohio Department of Mental Health and Addiction Services for both awards under the State Opioid Response Grant Program. The reports were subsequently filed on October 21, 2024, 342 days after the required due date. This is the result of the County not having effective internal controls over reporting requirements. Noncompliance with grant requirements could have an adverse effect on future grant awards by the awarding agency. The County did not have effective internal controls to help ensure that all reporting requirements were met as required by the grant agreement. The lack of internal controls could result in the County failing to track grants appropriately, as well as, submitting late and/or inaccurate reports leading to further noncompliance.