Audit 364907

Finding No. 2024-003 – Suspension and Debarment Federal Agency: U.S. Department of Treasury Federal Program: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: March 1, 2021 – December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Non-federal entities are required by Uniform Guidance to establish and maintain effective internal control over compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: During our audit, we identified that the County did not establish adequate internal control over compliance with federal suspension and debarment requirements as mandated by Uniform Guidance. Section III – Federal Awards Findings and Questioned Costs (Continued) Finding No. 2024-003 – Suspension and Debarment (Continued) Context: We noted that the County did not perform suspension and debarment verification procedures for 1 of 5 vendors tested before engaging in a contract. Effect: Lack of internal control over compliance could result in noncompliance with federal suspension and debarment requirements, potentially leading to penalties or loss of federal funding. Cause: Management informed us that they did not follow County policy to verify the vendor was not suspended or debarred before engaging in a contract. Repeat Finding: Finding was not reported in the previous fiscal year. Recommendation: We recommend that the County establish and maintain effective internal control over compliance with federal suspension and debarment requirements as mandated by Uniform Guidance. County employees involved with internal control over compliance should have a thorough understanding of Uniform Guidance and the applicable compliance requirements of the federal grant, as well as knowledge of the County’s activities and operations.

Finding No. 2024-003 – Suspension and Debarment Federal Agency: U.S. Department of Treasury Federal Program: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: March 1, 2021 – December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Non-federal entities are required by Uniform Guidance to establish and maintain effective internal control over compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: During our audit, we identified that the County did not establish adequate internal control over compliance with federal suspension and debarment requirements as mandated by Uniform Guidance. Section III – Federal Awards Findings and Questioned Costs (Continued) Finding No. 2024-003 – Suspension and Debarment (Continued) Context: We noted that the County did not perform suspension and debarment verification procedures for 1 of 5 vendors tested before engaging in a contract. Effect: Lack of internal control over compliance could result in noncompliance with federal suspension and debarment requirements, potentially leading to penalties or loss of federal funding. Cause: Management informed us that they did not follow County policy to verify the vendor was not suspended or debarred before engaging in a contract. Repeat Finding: Finding was not reported in the previous fiscal year. Recommendation: We recommend that the County establish and maintain effective internal control over compliance with federal suspension and debarment requirements as mandated by Uniform Guidance. County employees involved with internal control over compliance should have a thorough understanding of Uniform Guidance and the applicable compliance requirements of the federal grant, as well as knowledge of the County’s activities and operations.