Audit 397111

Department of Treasury Passed through South Dakota Department of Social Services and South Dakota Department of Health Federal Financial Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds Procurement, Suspension & Debarment Significant Deficiency in Internal Control over Compliance and Compliance Department of Health and Human Services Federal Financial Assistance Listing #93.493 Congressional Directives Procurement, Suspension & Debarment Significant Deficiency in Internal Control over Compliance and Compliance Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. 2 CFR 200 Appendix II requires certain provisions be included in contracts if criteria are applicable. Condition: Our testing over procurement suspension and debarment identified two contracts over $25,000 where some contract provisions required by Uniform Guidance were not included. Cause: There was a lapse in the internal control process in which contract provisions were not evaluated compared to Uniform Guidance contract requirements. Effect: Ineffective controls over this area of compliance resulted in contracts that did not include all contract provisions required by Uniform Guidance. Questioned Costs: None reported. Context: One contract was selected for testing for program 21.027 and one contract was selected for testing for program 93.493. Both contracts were missing some contract provisions required by Uniform Guidance. Repeat Finding from Prior Year: No Recommendation: We recommend the Organization review and strengthen the controls related to the review of contracts to ensure the contracts include the required Uniform Guidance provisions. Views of Responsible Officials: Management agrees with the finding.