FINDING 2023-004
Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Suspension
and Debarment Federal Agency: Department of the Treasury
Summary of Finding:
Prior to entering into subawards and covered transactions with SLFRF award funds, recipients
are required to verify...
FINDING 2023-004
Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Suspension
and Debarment Federal Agency: Department of the Treasury
Summary of Finding:
Prior to entering into subawards and covered transactions with SLFRF award funds, recipients
are required to verify that such contractors and subrecipients are not suspended, debarred, or otherwise
excluded. &”Covered transactions” include, but are not limited to, contracts for goods and services
awarded under a non-procurement transaction (i.e., grant agreement) that are expected to equal or
exceed $25,000. The verification is to be done by checking the Excluded Parties List System (EPLS),
collecting a certification from that person, or adding a clause or condition to the covered transaction
with that person. Due to the Treasury’s determination that the revenue loss eligible use category does
not give rise to subawards, the County was only required to comply with suspension and debarment
requirements related to covered transactions.
Upon inquiry of the County determine its policies and procedures related to suspension and
debarment requirements, the County stated that they did not have policies or procedures in place for
verifying that an entity with which it plans to enter into a covered transaction is not suspended, debarred,
or otherwise excluded or disqualified from participating in federal assistance programs or activities. The
County entered into covered transactions with four vendors during the audit period for goods or services
that equaled or exceeded $25,000 that were paid from SLFRF award funds. All four covered
transactions, totaling $1,661,247, were selected for testing. The County did not verify the vendors’
suspension and debarment status prior to payment for any of the four vendors.
Contact Person Responsible for Corrective Action: Paula Stewart
Contact Phone Number and Email Address: 812-275-3111 pstewart@lawrencecounty.in.gov
Views of Responsible Officials:
We concur with the finding.
Description of Corrective Action Plan:
The county will implement a policy to obtain a certification statement on all award payments exceeding
$25,000 that the vendor is not suspended, debarred, or otherwise excluded from SLFRF award funds.
The executed certification will be placed in the grant’s file.
Anticipated Completion Date:
Immediately.