FINDING 2025-003 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recover Funds – Suspension and Debarment Summary of Findings: Significant Deficiency, Other Matters Prior to entering into subawards and covered transactions with federal award funds, recipients are required to verify th...
FINDING 2025-003 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recover Funds – Suspension and Debarment Summary of Findings: Significant Deficiency, Other Matters Prior to entering into subawards and covered transactions with federal 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 or services awarded under a non-procurement transaction (i.e., grant agreement) that are expected to equal or exceed $25,000. Verification is to be done by checking the Excluded Parties List System (EPLS), collecting a certification from the vendor, or adding a clause or condition to the covered transaction with the vendor. Due to the U.S. Department of the Treasury's (Treasury) 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. Covered transactions in the amount of $2,256,164 were made during the audit period to five vendors. Of the five vendors the County entered into covered transactions with, four included a suspension and debarment clause and/or certification. For one vendor that totaled $45,714, the County did not check the EPLS, nor was a certification collected from the vendor, and a clause did not exist in the agreement with the vendor. Although the County had a policy to include a clause in vendor contracts related to covered transactions, no documentation to verify the County's compliance with the suspension and debarment federal requirement was provided for audit. Contact Person Responsible for Corrective Action Plan: Janet Lloyd, Clinton County Auditor Contact’s Phone Number: 765.659.6330 Contact’s Email Address: jlloyd@clintoncountyin.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The county auditor will require the county attorney to review all federal grants to insure all requirements are met and the contract includes the suspension and debarment clause. If the contract does not include the appropriate suspension and debarment clause, the commissioner’s secretary will send the appropriate notification for a certification from the vendor. Once received, the accounts payable INDIANA STATE BOARD OF ACCOUNTS 30 deputy will keep a list of grants approved by the county attorney and check the appropriate language or certification has been received before claims are processed. Anticipated Completion Date: December 31, 2026