Audit 400970

Federal Agency: U.S. Department of the Treasury Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agency: Johnson County Government and KCMO Housing and Community Development Department Pass-Through Numbers: SLFRF02226 and 2022-0104 Award Period: 3/3/2021-10/31/2026 and 3/19/2024-12/31/2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: The Organization performed suspension and debarment verification for vendors; however, documentation evidencing the completion and timing of those verifications was not retained for compliance and permanent recordkeeping purposes. Criteria or specific requirement: Uniform Guidance §200.213 and §200.318(c)(1) require non-Federal entities to ensure that covered transactions are not conducted with parties that are suspended or debarred and to maintain adequate records to demonstrate compliance with applicable Federal requirements. Cause: The Organization did not have a formal process in place requiring retention of documentation supporting suspension and debarment verification for vendors. Effect: Without adequate documentation, the Organization is unable to demonstrate compliance with Federal suspension and debarment requirements and could unknowingly contract with vendors that are not eligible to receive Federal funds. Repeat Finding: No. Recommendation: Management should implement a formal process to document and retain evidence of suspension and debarment verification for all applicable vendors, including verification dates. Management should also establish periodic review procedures to ensure continued vendor eligibility in accordance with Federal requirements. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of the Treasury Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agency: Johnson County Government and KCMO Housing and Community Development Department Pass-Through Numbers: SLFRF02226 and 2022-0104 Award Period: 3/3/2021-10/31/2026 and 3/19/2024-12/31/2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: During testing of cash disbursements, the Organization lacked evidence of the required level of review and approval for 2 of the 63 disbursements tested. Criteria: Uniform Guidance §200.403(a) requires that costs charged to Federal awards be necessary, reasonable, and adequately documented. Additionally, §200.303 requires non-Federal entities to establish and maintain effective internal control over Federal awards to provide reasonable assurance that transactions are properly authorized and comply with applicable Federal requirements. Cause: The Organization did not consistently document evidence of required approvals prior to processing disbursements. Effect: Without adequate approval documentation, the Organization is at increased risk of processing unallowable or unauthorized costs and is unable to demonstrate that all disbursements were properly reviewed and approved in accordance with internal policies and Federal requirements. Repeat Finding: No Recommendation: Management should ensure that all disbursements are reviewed and approved in accordance with established policies prior to payment and that evidence of such approvals is properly documented and retained in the audit trail. Views of responsible officials: There is no disagreement with the audit finding.