Audit 330901

Federal Agency: Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP4542-2024 Award Period: 7/1/22-12/31/24 & 4/1/24 - 5/15/24 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of procurement, suspension, and debarment. The client should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted the client did not have adequate internal controls designed to ensure vendors were not suspended or debarred. We also noted 1 vendor contract was obtained before the procurement policy was put in place; therefore, a second bid was not obtained. Questioned costs: None. Context: During our testing, it was noted that the client was not reviewing vendors prior to entering into a contract with a vendor to ensure the vendor was not on the suspended or debarred vendor list maintained by the General Services Administration. We also noted 1 vendor contract was obtained before the procurement policy was put in place; therefore, a second bid was not obtained. Cause: The client was unaware the contractors were not being reviewed to ensure they were not suspended or debarred. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: No. Recommendation: We recommend the client design controls to ensure an adequate review process is in place to review potential contractors to determine they are not suspended or debarred and to follow procurement policy. Views of responsible officials: There is no disagreement with the audit finding.

Federal Agency: Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP4542-2024 Award Period: 7/1/22-12/31/24 & 4/1/24 - 5/15/24 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of procurement, suspension, and debarment. The client should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted the client did not have adequate internal controls designed to ensure vendors were not suspended or debarred. We also noted 1 vendor contract was obtained before the procurement policy was put in place; therefore, a second bid was not obtained. Questioned costs: None. Context: During our testing, it was noted that the client was not reviewing vendors prior to entering into a contract with a vendor to ensure the vendor was not on the suspended or debarred vendor list maintained by the General Services Administration. We also noted 1 vendor contract was obtained before the procurement policy was put in place; therefore, a second bid was not obtained. Cause: The client was unaware the contractors were not being reviewed to ensure they were not suspended or debarred. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: No. Recommendation: We recommend the client design controls to ensure an adequate review process is in place to review potential contractors to determine they are not suspended or debarred and to follow procurement policy. Views of responsible officials: There is no disagreement with the audit finding.

Federal Agency: Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP4542-2024 Award Period: 7/1/22-12/31/24 & 4/1/24 - 5/15/24 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of procurement, suspension, and debarment. The client should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted the client did not have adequate internal controls designed to ensure vendors were not suspended or debarred. We also noted 1 vendor contract was obtained before the procurement policy was put in place; therefore, a second bid was not obtained. Questioned costs: None. Context: During our testing, it was noted that the client was not reviewing vendors prior to entering into a contract with a vendor to ensure the vendor was not on the suspended or debarred vendor list maintained by the General Services Administration. We also noted 1 vendor contract was obtained before the procurement policy was put in place; therefore, a second bid was not obtained. Cause: The client was unaware the contractors were not being reviewed to ensure they were not suspended or debarred. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: No. Recommendation: We recommend the client design controls to ensure an adequate review process is in place to review potential contractors to determine they are not suspended or debarred and to follow procurement policy. Views of responsible officials: There is no disagreement with the audit finding.

Federal Agency: Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP4542-2024 Award Period: 7/1/22-12/31/24 & 4/1/24 - 5/15/24 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of procurement, suspension, and debarment. The client should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted the client did not have adequate internal controls designed to ensure vendors were not suspended or debarred. We also noted 1 vendor contract was obtained before the procurement policy was put in place; therefore, a second bid was not obtained. Questioned costs: None. Context: During our testing, it was noted that the client was not reviewing vendors prior to entering into a contract with a vendor to ensure the vendor was not on the suspended or debarred vendor list maintained by the General Services Administration. We also noted 1 vendor contract was obtained before the procurement policy was put in place; therefore, a second bid was not obtained. Cause: The client was unaware the contractors were not being reviewed to ensure they were not suspended or debarred. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: No. Recommendation: We recommend the client design controls to ensure an adequate review process is in place to review potential contractors to determine they are not suspended or debarred and to follow procurement policy. Views of responsible officials: There is no disagreement with the audit finding.