Audit 397022

Criteria: The program requires the County submit obligation and expenditure reports quarterly throughout the grant period. Condition: CLA was unable to reconcile the cumulative totals reported on the county’s quarterly obligation and expenditure reports to the totals reported on the SEFA. It was observed that the cumulative total reported on the SEFA through June 30, 2025 materially exceeded the total reported on the County’s obligation and expenditure reports. Questioned Costs: None noted. Context: Expenditures reported on the SEFA materially exceeded expenditures reported on the county’s quarterly obligation and expenditure reports. Cause: This occurred due to the timing of the submission of the reports and the timing of expenditures being accrued and reconciled to the program. Effect: The accuracy and completeness of quarterly reports for the year ended 6/30/2025 could not be confirmed. Repeat Finding: Not a repeat finding. Recommendation: CLA recommends the County implement procedures to ensure timely reconciliation and reporting of expenditures. Views of responsible officials: There is no disagreement with the audit finding.

Criteria: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Before entering into a covered transaction the entity must verify that the contractor is not suspended, debarred, or otherwise excluded from participating in the transaction. Condition: Through our testing we noted that suspension and debarment checks were not performed for four vendors prior to entering into the transaction. Questioned Costs: None noted. Context: Suspension and debarment procedures were not performed for four of the seven vendors selected prior to entering into the transaction. In our testing, we noted that the four vendors related to long-standing contracts or purchace orders that were established prior to 2024. Cause: The County did not follow controls in place for ensuring that vendors are not suspended or debarred. Effect: Without checking debarment before engaging services, the County could have entered into an agreement with a vendor that was debarred from receiving federal funding. Repeat Finding: Repeat of finding 2024-001. Recommendation: CLA recommends the County implement procedures to ensure that federal guidance is followed relating to suspension and debarment for existing vendors and provide training on these procedures. While we note that the County implemented new procedures in 2025 to perform suspension and debarment checks on new vendors and contracts, this change in procedures did not address existing contracts or purchase orders that later transitioned to federal funding sources during the reporting period. Views of responsible officials: There is no disagreement with the audit finding