Audit 377436

Federal Agency: U.S. Department of the Treasury Federal Program Title: COVID-19 State and Local Fiscal Recovery Funds Federal Assistance Listing No.: 21.027 Award Period: 2023 Pass-through Entity: n/a Questioned Costs: n/a Compliance Requirement: (I) - Suspension and Debarment 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 and documented, and contracts are not made with a suspended or debarred 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 4 vendors tested, we noted that all 4 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: The County will ensure vendors are not suspended or debarred in the future.