Audit 406652

Federal Program Coronavirus State and Local Fiscal Recovery Funds (AL 21.027) Procurement, Suspension, and Debarment Criteria 2 CFR sections 200.320(a) (1) and (2) states “If small purchase [$10,000] procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources. Also, vendors for whom the County enters into a covered transaction ($25,000 or higher) with needs to be ensured that they are not suspended or debarred from federal funds per 2 CFR section 180.220. Furthermore, an entity should have a procurement policy that follows Uniform Guidance. Condition One transaction was selected for testing. For that transaction, we noted the County did not review for suspension and debarment. We also noted the County’s procurement policy did not follow Uniform Guidance. Questioned Costs None Context The suspension and debarment population was one and we noted during testing that the County did not ensure the vendor was not suspended or debarred from federal funds before entering into the covered transaction. Finally, we noted during review of the County’s procurement policy, it did not follow Uniform Guidance. Cause The County does not have sufficient procedures in place to ensure all expenditures comply with Uniform Guidance. Effect The County is not in compliance with Uniform Guidance. Repeat Finding Yes. Prior year audit finding 2021-006 Recommendation The County should follow their procurement policy for procurement and should update their procurement policy for suspension and debarment. Views of Responsible Officials and Planned Corrective Actions The County agrees with the recommendation and will review its policies and procedures.

Federal Program Highway Planning and Construction (AL 20.205) Procurement, Suspension, and Debarment Criteria 2 CFR sections 200.320(a) (1) and (2) states “If small purchase [$10,000] procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources. Also, vendors for whom the County enters into a covered transaction ($25,000 or higher) with needs to be ensured that they are not suspended or debarred from federal funds per 2 CFR section 180.220. Furthermore, an entity should have a procurement policy that follows Uniform Guidance. Condition One transaction was selected for testing. For that transaction, we noted the County did not review for suspension and debarment. We also noted the County’s procurement policy did not follow Uniform Guidance. Questioned Costs None Context The suspension and debarment population was one and we noted during testing that the County did not ensure the vendor was not suspended or debarred from federal funds before entering into the covered transaction. Finally, we noted during review of the County’s procurement policy, it did not follow Uniform Guidance. Cause The County does not have sufficient procedures in place to ensure all expenditures comply with Uniform Guidance. Effect The County is not in compliance with Uniform Guidance. Repeat Finding Yes. Prior year audit finding 2021-006 Recommendation The County should follow their procurement policy for procurement and should updated their procurement policy for suspension and debarment. Views of Responsible Officials and Planned Corrective Actions The County agrees with the recommendation and will review its policies and procedures.

Federal Program Coronavirus State and Local Fiscal Recovery Funds (AL 21.027) Reporting Criteria A system of internal controls requires all reports to be reviewed before being submitted. Also, federal requirement require reports be submitted accurately. Condition Two grant reports were required to be submitted during the period under audit. We noted both reports were not reviewed before submitting and one report did not agree with supporting documentation. Questioned Costs None Context The County was unable to provide evidence that grant reports were reviewed prior to submission. Cause The County does not have sufficient procedures in place to ensure all grant reporting is reviewed. Effect There is an increased risk of incorrect reporting. Repeat Finding Yes. Prior year audit finding 2021-007. Recommendation The County should review their policies and procedures for grant reporting. Views of Responsible Officials and Planned Corrective Actions The County agrees with the recommendation and will review its policies and procedures.

Federal Program All federal programs. Reporting Criteria The Uniform Guidance states that an auditee must submit a data collection form and audit reporting package to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Condition Kittson County did not submit the data collection form to the Federal Audit Clearinghouse within the required time frame. Questioned Costs None Context The County is in violation of the reporting requirements when their audit was not completed within the required timeframe. Cause The County’s general ledger accounts were not reconciled and the County was not ready for audit. Effect The County was not in compliance with federal reporting requirements. Repeat Finding Yes. Prior year audit finding 2021-009. Recommendation The annual County audit should be completed within the timeframe allowed by the Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions The County Administrator will monitor the progress of the annual audit in the future so that the annual audit will be completed on a timely basis as described in our corrective action plan.