Audit 346270

FY End
2024-06-30
Total Expended
$174.30M
Findings
2
Programs
64
Organization: Merced County (CA)
Year: 2024 Accepted: 2025-03-14

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
528243 2024-001 Significant Deficiency - I
1104685 2024-001 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $24.57M Yes 1
93.563 Child Support Services $9.14M - 0
14.239 Home Investment Partnerships Program $3.75M - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $2.92M - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $2.47M Yes 0
97.044 Assistance to Firefighters Grant $1.57M - 0
93.268 Immunization Cooperative Agreements $753,180 - 0
93.958 Block Grants for Community Mental Health Services $719,822 - 0
17.259 Wioa Youth Activities $671,881 - 0
93.667 Social Services Block Grant $540,708 - 0
93.558 Temporary Assistance for Needy Families $522,887 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $337,876 - 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $330,757 - 0
93.069 Public Health Emergency Preparedness $289,734 - 0
93.669 Child Abuse and Neglect State Grants $286,452 - 0
93.889 National Bioterrorism Hospital Preparedness Program $254,968 - 0
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $220,893 - 0
93.645 Stephanie Tubbs Jones Child Welfare Services Program $216,544 - 0
97.042 Emergency Management Performance Grants $181,275 - 0
93.977 Sexually Transmitted Diseases (std) Prevention and Control Grants $169,604 - 0
93.658 Foster Care Title IV-E $144,684 - 0
14.235 Supportive Housing Program $135,712 - 0
17.277 Wioa National Dislocated Worker Grants / Wia National Emergency Grants $130,143 - 0
17.278 Wioa Dislocated Worker Formula Grants $126,874 - 0
97.067 Homeland Security Grant Program $125,756 - 0
93.994 Maternal and Child Health Services Block Grant to the States $124,425 - 0
93.767 Children's Health Insurance Program $120,873 - 0
93.603 Adoption and Legal Guardianship Incentive Payments Program $115,839 - 0
17.258 Wioa Adult Program $113,622 - 0
93.778 Medical Assistance Program $112,016 - 0
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $102,348 - 0
21.032 Local Assistance and Tribal Consistency Fund $101,598 - 0
16.575 Crime Victim Assistance $100,829 - 0
84.126 Rehabilitation Services Vocational Rehabilitation Grants to States $98,129 - 0
93.150 Projects for Assistance in Transition From Homelessness (path) $85,382 - 0
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $83,410 - 0
97.083 Staffing for Adequate Fire and Emergency Response (safer) $81,076 - 0
10.025 Plant and Animal Disease, Pest Control, and Animal Care $70,087 - 0
93.053 Nutrition Services Incentive Program $57,944 - 0
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $53,969 - 0
93.659 Adoption Assistance $52,805 - 0
93.747 Elder Abuse Prevention Interventions Program $44,961 - 0
10.555 National School Lunch Program $44,357 - 0
93.052 National Family Caregiver Support, Title Iii, Part E $40,807 - 0
14.218 Community Development Block Grants/entitlement Grants $38,000 - 0
93.042 Special Programs for the Aging, Title Vii, Chapter 2, Long Term Care Ombudsman Services for Older Individuals $36,852 - 0
16.U99 Domestic Cannabis Eradication Suppression Program $35,792 - 0
93.590 Community-Based Child Abuse Prevention Grants $33,107 - 0
14.267 Continuum of Care Program $28,853 - 0
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $28,829 - 0
10.553 School Breakfast Program $28,078 - 0
93.071 Medicare Enrollment Assistance Program $27,491 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $20,057 - 0
10.664 Cooperative Forestry Assistance $20,000 - 0
93.043 Special Programs for the Aging, Title Iii, Part D, Disease Prevention and Health Promotion Services $13,120 - 0
93.324 State Health Insurance Assistance Program $10,850 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $9,583 Yes 0
93.917 Hiv Care Formula Grants $9,575 - 0
93.556 Marylee Allen Promoting Safe and Stable Families Program $7,173 - 0
14.231 Emergency Solutions Grant Program $7,030 - 0
93.041 Special Programs for the Aging, Title Vii, Chapter 3, Programs for Prevention of Elder Abuse, Neglect, and Exploitation $3,219 - 0
20.205 Highway Planning and Construction $2,469 - 0
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $853 - 0
93.090 Guardianship Assistance $313 - 0

Contacts

Name Title Type
YCEEC3J1AJ67 Lisa Cardella-Presto Auditee
2093857511 Eric Xin Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 – GENERAL Accounting Policies: The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal financial assistance programs of the County of Merced, California (County). The County reporting entity is defined in Note 1 within the Merced County Annual Comprehensive Financial Report (ACFR). All federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through other government agencies, is included in the SEFA. The accompanying SEFA is presented using the cash basis of accounting, with the exception of the Department of Workforce Investment using the accrual basis of accounting. Within the ACFR, the basic financial statements were presented using the accrual basis of accounting for the government-wide and proprietary fund statements and the modified accrual basis of accounting for the governmental fund statements. De Minimis Rate Used: Both Rate Explanation: The County has elected not to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance for over 99% of its federal grants. The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal financial assistance programs of the County of Merced, California (County). The County reporting entity is defined in Note 1 within the Merced County Annual Comprehensive Financial Report (ACFR). All federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through other government agencies, is included in the SEFA.
Title: NOTE 2 – BASIS OF ACCOUNTING Accounting Policies: The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal financial assistance programs of the County of Merced, California (County). The County reporting entity is defined in Note 1 within the Merced County Annual Comprehensive Financial Report (ACFR). All federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through other government agencies, is included in the SEFA. The accompanying SEFA is presented using the cash basis of accounting, with the exception of the Department of Workforce Investment using the accrual basis of accounting. Within the ACFR, the basic financial statements were presented using the accrual basis of accounting for the government-wide and proprietary fund statements and the modified accrual basis of accounting for the governmental fund statements. De Minimis Rate Used: Both Rate Explanation: The County has elected not to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance for over 99% of its federal grants. The accompanying SEFA is presented using the cash basis of accounting, with the exception of the Department of Workforce Investment using the accrual basis of accounting. Within the ACFR, the basic financial statements were presented using the accrual basis of accounting for the government-wide and proprietary fund statements and the modified accrual basis of accounting for the governmental fund statements.
Title: NOTE 3 – AMOUNT PROVIDED TO SUBRECIPIENTS Accounting Policies: The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal financial assistance programs of the County of Merced, California (County). The County reporting entity is defined in Note 1 within the Merced County Annual Comprehensive Financial Report (ACFR). All federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through other government agencies, is included in the SEFA. The accompanying SEFA is presented using the cash basis of accounting, with the exception of the Department of Workforce Investment using the accrual basis of accounting. Within the ACFR, the basic financial statements were presented using the accrual basis of accounting for the government-wide and proprietary fund statements and the modified accrual basis of accounting for the governmental fund statements. De Minimis Rate Used: Both Rate Explanation: The County has elected not to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance for over 99% of its federal grants. The County has provided federal awards to various organizations. The amounts provided to subrecipients from each federal program are summarized as follows: Assistance Contract Amount FEDERAL GRANTOR OR Listing or Provided to Pass-Through Grantor Federal Program Number Subrecipient Program Number Subrecipients US Department of Housing and Urban Development Supportive Housing Program 14.235 Merced County Community Action Agency 14610 $ 6 9,785 US Department of Housing and Urban Development Supportive Housing Program 14.235 Merced County Community Action Agency 14609 1 13,848 CA Department of Health Care Services Block Grants For Community Mental Health Services 93.958 Merced County Office of Education 2023126 2 6,575 CA Department of Health Care Services Block Grants for Prevention and Treatment of Substance Abuse 93.959 Community Social Model Advocates, lnc (2018213) 2021112 1 16,839 CA Department of Health Care Services Block Grants for Prevention and Treatment of Substance Abuse 93.959 Community Social Model Advocates, lnc (2021002) 2021002 1 10,117 CA Department of Health Care Services Block Grants for Prevention and Treatment of Substance Abuse 93.959 Public Health 13513-01 6 ,040 CA Department of Health Care Services Block Grants for Prevention and Treatment of Substance Abuse 93.959 Community Social Model Advocates, lnc (2018213) 2021112 4 7,905 CA Department of Health Care Services Block Grants for Prevention and Treatment of Substance Abuse 93.959 Community Social Model Advocates, lnc (2021002) 2021002 6 2,072 CA Department of Health Care Services Block Grants for Prevention and Treatment of Substance Abuse 93.959 Public Health 13513-01 1 1,790 CA Department of Health Care Services Medical Assistance Program 93.778 Community Social Model Advocates, lnc (2018213) 2021112 7 34,457 CA Department of Health Care Services Medical Assistance Program 93.778 Community Social Model Advocates, lnc (2018214) 14312-01 1 1,141 CA Department of Health Care Services Medical Assistance Program 93.778 AEGIS Treatment Centes, LLC (2018234) 2023122 9 35,819 CA Department of Health Care Services Medical Assistance Program 93.778 Community Social Model Advocates, lnc (2018213) 2021112 7 14,543 CA Department of Health Care Services Medical Assistance Program 93.778 Community Social Model Advocates, lnc (2018214) 14312-01 4 9,577 CA Department of Health Care Services Medical Assistance Program 93.778 AEGIS Treatment Centes, LLC (2018234) 2023122 9 85,152 CA Department of Housing and Community Development COVID-19 Emergency Service Grant 14.231 Merced County Community Action Agency CAAESGCV-2021-2 1 ,463 CA Department of Housing and Community Development COVID-19 Emergency Service Grant 14.231 Health House HH ESGCV2021 -1R4 4 ,551 CA Department of Housing and Community Development COVID-19 Emergency Service Grant 14.231 Health House HH ESGCV-2023-1 1 ,015 CA Employment Development Department WIOA Adult Program 17.258 Equus Workforce Solutions( Rescare) 14231 90,395 CA Employment Development Department WIOA Adult Program 17.258 Career TEAM 14712 79,700 CA Employment Development Department WIOA Adult Program 17.258 Equus Workforce Solutions ( Rescare) 2022194 373,555 CA Employment Development Department WIOA Adult Program 17.258 Career TEAM 2023255 298,742 CA Employment Development Department WIOA Dislocated Worker Formula Grants 17.278 Equus Workforce Solutions( Rescare) 2022194 271,031 CA Employment Development Department WIOA Youth Program 17.259 Merced County Office of Education 2022243 719,362 CA Employment Development Department WIOA National Emergency Grants 17.277 Career TEAM 14713 15,171 CA Employment Development Department WIOA Dislocated Worker Formula Grants 17.258 Career TEAM 2023255 36,485 CA Employment Development Department WIOA Dislocated Worker Formula Grants 17.278 Equus Workforce Solutions( Rescare) 2022194 40,562 CA Employment Development Department WIOA Dislocated Worker Formula Grants 17.278 Career TEAM 2023255 220,572 CA Employment Development Department WIOA Youth Program 17.259 Merced County Office of Education 2022243 430,204 $ 6 ,578,469
Title: NOTE 4 – CALIFORNIA DEPARTMENT OF AGING GRANT PROGRAMS Accounting Policies: The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal financial assistance programs of the County of Merced, California (County). The County reporting entity is defined in Note 1 within the Merced County Annual Comprehensive Financial Report (ACFR). All federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through other government agencies, is included in the SEFA. The accompanying SEFA is presented using the cash basis of accounting, with the exception of the Department of Workforce Investment using the accrual basis of accounting. Within the ACFR, the basic financial statements were presented using the accrual basis of accounting for the government-wide and proprietary fund statements and the modified accrual basis of accounting for the governmental fund statements. De Minimis Rate Used: Both Rate Explanation: The County has elected not to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance for over 99% of its federal grants. The SEFA is normally a presentation of federal awards expended. However, the terms and conditions of agency contracts with the California Department of Aging require agencies to display state-funded expenditures discretely along with the related federal expenditures in the SEFA. The following is a listing of the grant programs administered by the California Department of Aging. ASSISTANCE CONTRACT LISTING OR PROGRAM FEDERAL STATE LOCAL PROGRAM TITLE PROGRAM NUMBER NUMBER EXPENDITURES EXPENDITURES Medicare Enrollment Assistance Program Medicare Improvements for Patients and Providers Act 93.071 MI-2223-31 $ 2 ,627 $ - Medicare Enrollment Assistance Program Medicare Improvements for Patients and Providers Act 93.071 MI-2324-31 2 7,491 CA health Advocates SMP Program CA health Advocates SMP Program State Only 23/24 Partner Agreement - 1 0,000 Access to Technology Access to Technology State Only AT-2223-24 - 3 53,892 Title III, Part C - Nutrition Services Nutrition Services 93.045 AP-2223-31 4 79,230 4 19,148 Nutrition Services Incentive Program NSIP 93.053 AP-2223-31 5 7,944 - National Family Caregiver Support - Title III, Part E Family Caregiver Title IIIE 93.052 AP-2223-31 1 01,792 - Title VII, Programs for Prevention of Elder Abuse, Neglect, and Exploitation Elder Abuse Title VII B 93.041 AP-2223-31 3 ,219 - Title VII, Long-Term Care Ombudsman Services for Older Individuals Ombudsman Title VII A 93.042 AP-2223-31 3 6,852 - Title III, Part D, Disease Prevention and Health Promotion Services Disease Prev & Promo Svcs Title IIID 93.043 AP-2223-31 8 ,561 - Title III, Part B - Grants for Supportive Services and Senior Centers Supp Svcs & Sr. Ctrs Title III B 93.044 AP-2223-31 1 66,183 8 2,221 Ombudsman PHL& C Ombudsman PHL& C State Only AP-2223-31 - 1 ,994 Ombudsman Special Deposit Fund (SHF) Ombudsman Special Deposit Fund (SHF) State Only AP-2223-31 - 1 3,950 Ombudsman Skilled Nursing Fac Quality & Acctability Fund Ombudsman Skilled Nursing Fac Quality & Acctability Fund State Only AP-2223-31 - 9 ,471 Title III, Part B - Grants for Supportive Services and Senior Centers Administration - Title IIIB 93.044 AP-2223-31 3 3,281 - Title III, Part C - Nutrition Services Administration - Title IIIC1 93.045 AP-2223-31 3 8,270 - Title III, Part C - Nutrition Services Administration - Title IIIC2 93.045 AP-2223-31 3 5,309 - Administration - Title IIIE Administration - Title IIIE 93.052 AP-2223-31 1 5,160 - HCBS Infrastructure HCBS Infrastructure State Only NI-2223-31 - 3 15,950 State Administrative Matching Grants for Supplemental Nutrition Assistance Calfresh Healthy Living AAA 10.561 CF-2223-31 4 7,331 - State Administrative Matching Grants for Supplemental Nutrition Assistance Calfresh Healthy Living AAA 10.561 CF-2223-31 1 41,926 - ARPA - Title III, Part B - Grants for Supportive Services and Senior Centers ARPA - Supportive Services (TITLE IIIB) 93.044 AP-2122-31 9 2,162 - ARPA - Title III, Part C - Nutrition Services ARPA - Congregate Meals (TITLE IIIC-1) 93.045 AP-2122-31 1 02,348 - ARPA - Title III, Part D, Disease Prevention and Health Promotion Services ARPA - Congregate Meals (TITLE IIIC-2) 93.043 AP-2122-31 1 27,407 - ARPA - Title III, Part D, Disease Prevention and Health Promotion Services ARPA - Preventative Health (TITLE IIID) 93.043 AP-2122-31 1 3,120 - ARPA - National Family Caregiver Support - Title III, Part E ARPA - Family Caregiver (TITLE IIIE) 93.052 AP-2122-31 4 0,807 - Digital Connections Digital Connections State Only DC-2223-31 - 1 1,518 Title III, Part B - Grants for Supportive Services and Senior Centers Public Health Workforce 93.044 PH-2223-31 8 53 - Modernizing Older Californians Act Modernizing Older Californians Act State Only OM-2223-31 - 1 ,990 Older Adult's Recovery and Resilience Fund - HCBS - DHFP Older Adult's Recovery and Resilience Fund - HCBS - DHFP State Only IF-2223-31 - 4 5,425 Older Adult's Recovery and Resilience Fund - HCBS - SLS Older Adult's Recovery and Resilience Fund - HCBS - SLS State Only IF-2223-31 - 1 06,806 Older Adult's Recovery and Resilience Fund - HCBS - FCS Older Adult's Recovery and Resilience Fund - HCBS - FCS State Only IF-2223-31 - 4 0,574 Older Adult's Recovery and Resilience Fund - HCBS - OCNP&IA (C-1 & C-2) Older Adult's Recovery and Resilience Fund - HCBS - OCNP&IA (C-1 & C-2) State Only IF-2223-31 - 2 57,024 State Administrative Matching Grants for Supplemental Nutrition Assistance Calfresh Expansion 10.561 CF-2223-31 4 ,680 4 ,680 State Administrative Matching Grants for Supplemental Nutrition Assistance Calfresh Expansion 10.561 CF-2223-31 1 8,643 1 8,642 COVID-19: ELC Enhancing Detection Expansion Funding HICAP 93.324 HI-2122-31 4 3,941 1 04,571 COVID-19: ELC Enhancing Detection Expansion Funding HICAP 93.324 HI-2425-31 1 0,850 7 6,651 $ 1 ,649,987 $ 1 ,874,507
Title: NOTE 5 – LOANS OUTSTANDING Accounting Policies: The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal financial assistance programs of the County of Merced, California (County). The County reporting entity is defined in Note 1 within the Merced County Annual Comprehensive Financial Report (ACFR). All federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through other government agencies, is included in the SEFA. The accompanying SEFA is presented using the cash basis of accounting, with the exception of the Department of Workforce Investment using the accrual basis of accounting. Within the ACFR, the basic financial statements were presented using the accrual basis of accounting for the government-wide and proprietary fund statements and the modified accrual basis of accounting for the governmental fund statements. De Minimis Rate Used: Both Rate Explanation: The County has elected not to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance for over 99% of its federal grants. The County participates in certain federal award programs that sponsor revolving loan programs, which are administered by the County. These programs maintain servicing and trust arrangements with the County to collect loan repayments. The funds are returned to the programs upon repayment of the principal and interest. The federal government has imposed no continuing compliance requirements with respect to the loans rendered under the programs other than to repay the loans. The following is a summary of the loan programs maintained by the County, and their activities and balances, as of and for the year ended June 30, 2024: Assistance June 30, 2023 June 30, 2024 Listing Amount Amount Number Outstanding Increase Decrease Outstanding Economic Adjustment Assistance 11.307 $ 56,223 $ - $ 56,223 $ - Community Development Block Grants/State's Programs 14.228 2,880,975 37,975 - 2,918,950 HOME Investment Partnership Program 14.239 3,767,197 - 15,029 3,752,168 $ 6,704,395 $ 37,975 $ 71,252 $ 6,671,118
Title: NOTE 6 – INDIRECT COST RATE DISCLOSURE Accounting Policies: The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal financial assistance programs of the County of Merced, California (County). The County reporting entity is defined in Note 1 within the Merced County Annual Comprehensive Financial Report (ACFR). All federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through other government agencies, is included in the SEFA. The accompanying SEFA is presented using the cash basis of accounting, with the exception of the Department of Workforce Investment using the accrual basis of accounting. Within the ACFR, the basic financial statements were presented using the accrual basis of accounting for the government-wide and proprietary fund statements and the modified accrual basis of accounting for the governmental fund statements. De Minimis Rate Used: Both Rate Explanation: The County has elected not to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance for over 99% of its federal grants. The County has elected not to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance for over 99% of its federal grants. The County elected to use the 10 percent de minimus indirect cost rate for the following program: Assistance Listing Federal Program Title Number Expenditures Crime Victim Assistance 16.575 $ 164,779 Crime Victim Assistance 16.575 441,268 Crime Victim Assistance 16.575 121,902 Crime Victim Assistance 16.575 100,829 Total $ 828,778

Finding Details

Finding 2024-001 – Procurements and Suspension and Debarment Program: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Agency: U.S. Department of the Treasury Passed Through: N/A – Direct Program Award Year: Fiscal Year 2023-2024 Compliance Requirement: Procurement and Suspension and Debarment Questioned Costs: $0 Criteria Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) §200.303 states that the non- Federal entity (County) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Per § 200.332, recipients and subrecipients are subject to the procurement and debarment and suspension regulations implementing Executive Orders 12549 and 12689, as well as 2 CFR part 180. The regulations in 2 CFR part 180 restrict making Federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. Condition During our testing of procurement and suspension and debarment, we noted six (6) instances where the County did not keep record for verifying that an entity with which it planned to enter into a covered transaction was not debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. Cause of Condition The County’s existing internal control system is not operating effectively to provide reasonable assurance that procurement procedures in place comply with the procurement requirements related to the program. Repeat Finding No. Effect of Condition There is increased risk of noncompliance with the procurement requirement as set forth in the U.S. Office of Management and Budget (OMB) Compliance Supplement, which can jeopardize future federal funding as well as result in the payback of federal awards. Failure to conduct proper verifications before engaging in a covered transaction with an entity could result in fraud, waste, and abuse of federal funds.Recommendation We recommend the County design and implement internal control activities over the procurement and suspension and debarment compliance requirement under the Uniform Guidance. We also recommend the County keeps adequate records for verifying the contractors receiving federal grant funding were not debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. Management Response and Corrective Action Plan The County has confirmed that the internal procurement process incorporates the verification that contractors are in possession of valid, applicable licenses and are not barred, suspended or otherwise excluded from receiving federal funds prior to engaging in contracted work. Reference to this process has not been regularly documented; going forward, verifications will be documented on the contract review cover sheet to further support the completion of the process. Copies of supporting documentation will be attached, when applicable, to demonstrate eligibility.
Finding 2024-001 – Procurements and Suspension and Debarment Program: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Agency: U.S. Department of the Treasury Passed Through: N/A – Direct Program Award Year: Fiscal Year 2023-2024 Compliance Requirement: Procurement and Suspension and Debarment Questioned Costs: $0 Criteria Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) §200.303 states that the non- Federal entity (County) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Per § 200.332, recipients and subrecipients are subject to the procurement and debarment and suspension regulations implementing Executive Orders 12549 and 12689, as well as 2 CFR part 180. The regulations in 2 CFR part 180 restrict making Federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. Condition During our testing of procurement and suspension and debarment, we noted six (6) instances where the County did not keep record for verifying that an entity with which it planned to enter into a covered transaction was not debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. Cause of Condition The County’s existing internal control system is not operating effectively to provide reasonable assurance that procurement procedures in place comply with the procurement requirements related to the program. Repeat Finding No. Effect of Condition There is increased risk of noncompliance with the procurement requirement as set forth in the U.S. Office of Management and Budget (OMB) Compliance Supplement, which can jeopardize future federal funding as well as result in the payback of federal awards. Failure to conduct proper verifications before engaging in a covered transaction with an entity could result in fraud, waste, and abuse of federal funds.Recommendation We recommend the County design and implement internal control activities over the procurement and suspension and debarment compliance requirement under the Uniform Guidance. We also recommend the County keeps adequate records for verifying the contractors receiving federal grant funding were not debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. Management Response and Corrective Action Plan The County has confirmed that the internal procurement process incorporates the verification that contractors are in possession of valid, applicable licenses and are not barred, suspended or otherwise excluded from receiving federal funds prior to engaging in contracted work. Reference to this process has not been regularly documented; going forward, verifications will be documented on the contract review cover sheet to further support the completion of the process. Copies of supporting documentation will be attached, when applicable, to demonstrate eligibility.