Audit 409258

Reference Number: 2025-002 Federal Agency: U.S. Department of the Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds (American Rescue Plan Act) Assistance Listing Number: 21.027 Federal Award Identification Number Not Available Federal Award Year 2025 Pass-Through Agency: N/A Pass-Through Number: N/A Compliance Requirement: Suspension and Debarment Award Period: 1/1/2025 - 12/31/2025 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Compliance: 2 CFR 200.213 Suspension and Debarment restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. 2 CFR 180.300 states that an entity may determine suspension and debarment status by: (a) Checking SAM (System for Award Management) Exclusions; or (b) Collecting a certification from that person; or (c) Adding a clause or condition to the covered transaction with that person (7) Distribution of work to individuals and firms or economic considerations. Control: Per 2 CFR Section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Township could not provide supporting documentation that suspension and debarment status was determined prior to award. Context: The suspension and debarment status for all of the vendors tested were not documented on the eight transactions tested. Questioned costs: There are no questioned costs related to this finding as the vendors were not federally suspended or debarred. Cause: The Township relied on State policies and procedures for suspension and debarment for State piggyback contracts, rather than applying their own established controls to these contracts. Effect: The Township is not in compliance with federal suspension and debarment regulations. Repeat Finding: This finding, in part, is a repeat of a finding in the immediately prior year (finding number 2024-002). Recommendation: The Township should ensure that established policies and procedures related to suspension and debarment are applied to all contracts, even for piggyback agreements adopted from the State. Views of Responsible Officials and Planned Corrective Action: The Township has created a procedure to regularly check Sam.gov for suspension and debarment prior to issuing purchases orders or contracts.