Audit 377293

Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires auditees to prepare an accurate Schedule of Expenditures of Federal Awards containing awards expended, assistance listing title and number, award number, name of the Federal agency, name of pass-through entity, and awards paid to subrecipients. Condition: During our audit, we noted that the Schedule of Expenditures of Federal Awards contained errors. The City's current internal controls over Schedule of Expenditures of Federal Awards reporting are not sufficient enough to ensure correct reporting. Cause: Management failed to follow reporting requirements related to the Schedule of Expenditures of Federal Awards. Effect: Federal expenditures reported in the Schedule of Expenditures of Federal Awards were incorrect. Recommendation: We recommend management develop internal controls over reporting and consult with external consultants, if necessary, to ensure an accurate Schedule of Expenditures of Federal Awards is prepared. Management's Response: We will develop internal controls over reporting and will consult with external consultants, if necessary, to ensure preparation of an accurate Schedule of Expenditures of Federal Awards.

Criteria: Title 2 U.S. Code of Federal Regulations Part 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with federal statutes, regulations, and the terms and conditions of the federal award. Effective internal controls should include procedures in place to ensure the required certifications for covered contracts and subawards are received, documented, and contracts are not made with a debarred or suspended party. Condition: During our testing, it was noted that the County did not have adequate controls designed to ensure that suspension and debarment requirements were being met. Context: Of the 3 vendors tested, we noted that all 3 were not verified by the County or certifications from the vendors were not collected to ensure the vendors were neither suspended or debarred. Cause: The County has not designed and implemented internal controls to ensure compliance with suspension and debarment requirements outlined. Effect: Failure to obtain the required certifications or perform verification procedures with SAM.gov could result in the payment of federal funds to vendors that are suspended or debarred from participation in federal assistance programs. Recommendation: We recommend that the County implement internal controls to ensure that suspension and debarment assessments are performed during the procurement and contracting phase. In addition, sufficient documentation should be retained to evidence suspension and debarment verification is performed. Management's Response: We will implement internal controls to ensure that suspension and debarment assessments are performed during the procurement and contracting phase, and we will retain sufficient documentation to evidence that suspension and debarment verficiation is performed.