Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Financial Assistance Listing Number: 21.027 Federal Grantor: U.S. Department of Treasury Award No. and Year: 2021 Compliance Requirements: Procurement and Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance and Instance of Noncompliance Criteria: 2 CFR section 200.303(a), Internal Controls, states that the 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. Title 2 CFR Section 200.214 of the Uniform Guidance states that the County must comply with 2 CFR part 180, which implements Executive Orders 12549 and 12689. The regulations in 2 CFR part 180 restrict 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. Per 2 CFR Section 180.300, when a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at https://www.sam.gov/SAM/, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity. 2 CFR section Appendix II to Part 200, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards states that in addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain certain provisions, as applicable. Condition: During our testing of the Orange County Public Works (OCPW), Orange County Community Resources (OCCR) and the Social Services Agency’s (SSA) provisions for procurement requirements under the COVID-19 Coronavirus State and Local Fiscal Recovery Funds, we noted the following instances where there was no evidence that the OCPW, OCCR or SSA departments verified the entity was not suspended or debarred or otherwise excluded from participating in the transaction, prior to entering the contract, in accordance with County policy: • Four (4) of four (4) contracts through the OCPW department selected for testing. • Three (3) of eight (8) contracts through the OCCR department selected for testing. • One (1) of one (1) contract through the SSA department selected for testing. The following information was not provided at the time of the contract award for four (4) of four (4) contracts selected for testing within the OCPW department, one (1) of one (1) contract selected within SSA, and five (5) of eight (8) contracts selected for testing within the OCCR department: • Byrd Anti-Lobbying Amendment • Clean Air Act and Federal Pollution Control Act provision The following information was not provided at the time of the contract award for two (2) of four (4) contracts selected for testing within the OCPW department and one (1) of one (1) contract selected for testing within SSA: • Contract Work Hours and Safety Standards Act provision The following information was not provided at the time of the contract award for one (1) of one contract selected for testing within SSA: • Davis-Bacon Act provision • Equal Employment Opportunity provision Cause: The OCPW, OCCR and SSA departments did not follow their policy to verify the information described in the condition prior to entering the transactions and did not consistently ensure that the applicable required provisions were communicated to contractors. Effect: The County’s control and compliance were not consistently followed, which required verification of suspension or debarment prior to entering the contract. EB reviewed the vendor’s status on SAM.gov and verified the vendors selected for testing were not suspended and debarred at the date of the audit. Additionally, the OCPW, SSA and OCCR departments did not identify the applicable required provisions of the contract to the contractors at the time of the contract award. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A nonstatistical sample of four (4) out of twelve (12) procurement contracts were sampled from OCPW and eight (8) out of nineteen (19) procurement contracts were sampled from OCCR for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds. The entire population of 1 (contract) was tested from SSA for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds. Repeat Finding from Prior Years: Yes, Finding 2022-003 and 2022-009. Recommendation: We recommend that the OCPW, OCCR and SSA departments adhere to their procurement procedures requiring the suspension or debarment verification is performed prior to entering into a covered transaction. Additionally, we recommend the OCPW, SSA and OCCR departments modify and strengthen its current policies and procedures to ensure that all applicable required provisions are communicated to contractors in accordance with 2 CFR Appendix II to Part 200. Views of Responsible Officials: Management agrees. See separately issued Corrective Action Plan.
Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Financial Assistance Listing Number: 21.027 Federal Grantor: U.S. Department of Treasury Award No. and Year: 2021 Compliance Requirements: Procurement and Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance and Instance of Noncompliance Criteria: 2 CFR section 200.303(a), Internal Controls, states that the 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. Title 2 CFR Section 200.214 of the Uniform Guidance states that the County must comply with 2 CFR part 180, which implements Executive Orders 12549 and 12689. The regulations in 2 CFR part 180 restrict 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. Per 2 CFR Section 180.300, when a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at https://www.sam.gov/SAM/, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity. 2 CFR section Appendix II to Part 200, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards states that in addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain certain provisions, as applicable. Condition: During our testing of the Orange County Public Works (OCPW), Orange County Community Resources (OCCR) and the Social Services Agency’s (SSA) provisions for procurement requirements under the COVID-19 Coronavirus State and Local Fiscal Recovery Funds, we noted the following instances where there was no evidence that the OCPW, OCCR or SSA departments verified the entity was not suspended or debarred or otherwise excluded from participating in the transaction, prior to entering the contract, in accordance with County policy: • Four (4) of four (4) contracts through the OCPW department selected for testing. • Three (3) of eight (8) contracts through the OCCR department selected for testing. • One (1) of one (1) contract through the SSA department selected for testing. The following information was not provided at the time of the contract award for four (4) of four (4) contracts selected for testing within the OCPW department, one (1) of one (1) contract selected within SSA, and five (5) of eight (8) contracts selected for testing within the OCCR department: • Byrd Anti-Lobbying Amendment • Clean Air Act and Federal Pollution Control Act provision The following information was not provided at the time of the contract award for two (2) of four (4) contracts selected for testing within the OCPW department and one (1) of one (1) contract selected for testing within SSA: • Contract Work Hours and Safety Standards Act provision The following information was not provided at the time of the contract award for one (1) of one contract selected for testing within SSA: • Davis-Bacon Act provision • Equal Employment Opportunity provision Cause: The OCPW, OCCR and SSA departments did not follow their policy to verify the information described in the condition prior to entering the transactions and did not consistently ensure that the applicable required provisions were communicated to contractors. Effect: The County’s control and compliance were not consistently followed, which required verification of suspension or debarment prior to entering the contract. EB reviewed the vendor’s status on SAM.gov and verified the vendors selected for testing were not suspended and debarred at the date of the audit. Additionally, the OCPW, SSA and OCCR departments did not identify the applicable required provisions of the contract to the contractors at the time of the contract award. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A nonstatistical sample of four (4) out of twelve (12) procurement contracts were sampled from OCPW and eight (8) out of nineteen (19) procurement contracts were sampled from OCCR for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds. The entire population of 1 (contract) was tested from SSA for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds. Repeat Finding from Prior Years: Yes, Finding 2022-003 and 2022-009. Recommendation: We recommend that the OCPW, OCCR and SSA departments adhere to their procurement procedures requiring the suspension or debarment verification is performed prior to entering into a covered transaction. Additionally, we recommend the OCPW, SSA and OCCR departments modify and strengthen its current policies and procedures to ensure that all applicable required provisions are communicated to contractors in accordance with 2 CFR Appendix II to Part 200. Views of Responsible Officials: Management agrees. See separately issued Corrective Action Plan.
Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Financial Assistance Listing Number: 21.027 Federal Grantor: U.S. Department of Treasury Award No. and Year: 2021 Compliance Requirements: Procurement and Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance and Instance of Noncompliance Criteria: 2 CFR section 200.303(a), Internal Controls, states that the 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. Title 2 CFR Section 200.214 of the Uniform Guidance states that the County must comply with 2 CFR part 180, which implements Executive Orders 12549 and 12689. The regulations in 2 CFR part 180 restrict 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. Per 2 CFR Section 180.300, when a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at https://www.sam.gov/SAM/, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity. 2 CFR section Appendix II to Part 200, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards states that in addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain certain provisions, as applicable. Condition: During our testing of the Orange County Public Works (OCPW), Orange County Community Resources (OCCR) and the Social Services Agency’s (SSA) provisions for procurement requirements under the COVID-19 Coronavirus State and Local Fiscal Recovery Funds, we noted the following instances where there was no evidence that the OCPW, OCCR or SSA departments verified the entity was not suspended or debarred or otherwise excluded from participating in the transaction, prior to entering the contract, in accordance with County policy: • Four (4) of four (4) contracts through the OCPW department selected for testing. • Three (3) of eight (8) contracts through the OCCR department selected for testing. • One (1) of one (1) contract through the SSA department selected for testing. The following information was not provided at the time of the contract award for four (4) of four (4) contracts selected for testing within the OCPW department, one (1) of one (1) contract selected within SSA, and five (5) of eight (8) contracts selected for testing within the OCCR department: • Byrd Anti-Lobbying Amendment • Clean Air Act and Federal Pollution Control Act provision The following information was not provided at the time of the contract award for two (2) of four (4) contracts selected for testing within the OCPW department and one (1) of one (1) contract selected for testing within SSA: • Contract Work Hours and Safety Standards Act provision The following information was not provided at the time of the contract award for one (1) of one contract selected for testing within SSA: • Davis-Bacon Act provision • Equal Employment Opportunity provision Cause: The OCPW, OCCR and SSA departments did not follow their policy to verify the information described in the condition prior to entering the transactions and did not consistently ensure that the applicable required provisions were communicated to contractors. Effect: The County’s control and compliance were not consistently followed, which required verification of suspension or debarment prior to entering the contract. EB reviewed the vendor’s status on SAM.gov and verified the vendors selected for testing were not suspended and debarred at the date of the audit. Additionally, the OCPW, SSA and OCCR departments did not identify the applicable required provisions of the contract to the contractors at the time of the contract award. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A nonstatistical sample of four (4) out of twelve (12) procurement contracts were sampled from OCPW and eight (8) out of nineteen (19) procurement contracts were sampled from OCCR for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds. The entire population of 1 (contract) was tested from SSA for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds. Repeat Finding from Prior Years: Yes, Finding 2022-003 and 2022-009. Recommendation: We recommend that the OCPW, OCCR and SSA departments adhere to their procurement procedures requiring the suspension or debarment verification is performed prior to entering into a covered transaction. Additionally, we recommend the OCPW, SSA and OCCR departments modify and strengthen its current policies and procedures to ensure that all applicable required provisions are communicated to contractors in accordance with 2 CFR Appendix II to Part 200. Views of Responsible Officials: Management agrees. See separately issued Corrective Action Plan.
Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Financial Assistance Listing Number: 21.027 Federal Grantor: U.S. Department of Treasury Award No. and Year: 2021 Compliance Requirements: Procurement and Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance and Instance of Noncompliance Criteria: 2 CFR section 200.303(a), Internal Controls, states that the 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. Title 2 CFR Section 200.214 of the Uniform Guidance states that the County must comply with 2 CFR part 180, which implements Executive Orders 12549 and 12689. The regulations in 2 CFR part 180 restrict 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. Per 2 CFR Section 180.300, when a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at https://www.sam.gov/SAM/, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity. 2 CFR section Appendix II to Part 200, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards states that in addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain certain provisions, as applicable. Condition: During our testing of the Orange County Public Works (OCPW), Orange County Community Resources (OCCR) and the Social Services Agency’s (SSA) provisions for procurement requirements under the COVID-19 Coronavirus State and Local Fiscal Recovery Funds, we noted the following instances where there was no evidence that the OCPW, OCCR or SSA departments verified the entity was not suspended or debarred or otherwise excluded from participating in the transaction, prior to entering the contract, in accordance with County policy: • Four (4) of four (4) contracts through the OCPW department selected for testing. • Three (3) of eight (8) contracts through the OCCR department selected for testing. • One (1) of one (1) contract through the SSA department selected for testing. The following information was not provided at the time of the contract award for four (4) of four (4) contracts selected for testing within the OCPW department, one (1) of one (1) contract selected within SSA, and five (5) of eight (8) contracts selected for testing within the OCCR department: • Byrd Anti-Lobbying Amendment • Clean Air Act and Federal Pollution Control Act provision The following information was not provided at the time of the contract award for two (2) of four (4) contracts selected for testing within the OCPW department and one (1) of one (1) contract selected for testing within SSA: • Contract Work Hours and Safety Standards Act provision The following information was not provided at the time of the contract award for one (1) of one contract selected for testing within SSA: • Davis-Bacon Act provision • Equal Employment Opportunity provision Cause: The OCPW, OCCR and SSA departments did not follow their policy to verify the information described in the condition prior to entering the transactions and did not consistently ensure that the applicable required provisions were communicated to contractors. Effect: The County’s control and compliance were not consistently followed, which required verification of suspension or debarment prior to entering the contract. EB reviewed the vendor’s status on SAM.gov and verified the vendors selected for testing were not suspended and debarred at the date of the audit. Additionally, the OCPW, SSA and OCCR departments did not identify the applicable required provisions of the contract to the contractors at the time of the contract award. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A nonstatistical sample of four (4) out of twelve (12) procurement contracts were sampled from OCPW and eight (8) out of nineteen (19) procurement contracts were sampled from OCCR for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds. The entire population of 1 (contract) was tested from SSA for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds. Repeat Finding from Prior Years: Yes, Finding 2022-003 and 2022-009. Recommendation: We recommend that the OCPW, OCCR and SSA departments adhere to their procurement procedures requiring the suspension or debarment verification is performed prior to entering into a covered transaction. Additionally, we recommend the OCPW, SSA and OCCR departments modify and strengthen its current policies and procedures to ensure that all applicable required provisions are communicated to contractors in accordance with 2 CFR Appendix II to Part 200. Views of Responsible Officials: Management agrees. See separately issued Corrective Action Plan.
Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Financial Assistance Listing Number: 21.027 Federal Grantor: U.S. Department of Treasury Award No. and Year: 2021 Compliance Requirements: Procurement and Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance and Instance of Noncompliance Criteria: 2 CFR section 200.303(a), Internal Controls, states that the 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. Title 2 CFR Section 200.214 of the Uniform Guidance states that the County must comply with 2 CFR part 180, which implements Executive Orders 12549 and 12689. The regulations in 2 CFR part 180 restrict 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. Per 2 CFR Section 180.300, when a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at https://www.sam.gov/SAM/, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity. 2 CFR section Appendix II to Part 200, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards states that in addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain certain provisions, as applicable. Condition: During our testing of the Orange County Public Works (OCPW), Orange County Community Resources (OCCR) and the Social Services Agency’s (SSA) provisions for procurement requirements under the COVID-19 Coronavirus State and Local Fiscal Recovery Funds, we noted the following instances where there was no evidence that the OCPW, OCCR or SSA departments verified the entity was not suspended or debarred or otherwise excluded from participating in the transaction, prior to entering the contract, in accordance with County policy: • Four (4) of four (4) contracts through the OCPW department selected for testing. • Three (3) of eight (8) contracts through the OCCR department selected for testing. • One (1) of one (1) contract through the SSA department selected for testing. The following information was not provided at the time of the contract award for four (4) of four (4) contracts selected for testing within the OCPW department, one (1) of one (1) contract selected within SSA, and five (5) of eight (8) contracts selected for testing within the OCCR department: • Byrd Anti-Lobbying Amendment • Clean Air Act and Federal Pollution Control Act provision The following information was not provided at the time of the contract award for two (2) of four (4) contracts selected for testing within the OCPW department and one (1) of one (1) contract selected for testing within SSA: • Contract Work Hours and Safety Standards Act provision The following information was not provided at the time of the contract award for one (1) of one contract selected for testing within SSA: • Davis-Bacon Act provision • Equal Employment Opportunity provision Cause: The OCPW, OCCR and SSA departments did not follow their policy to verify the information described in the condition prior to entering the transactions and did not consistently ensure that the applicable required provisions were communicated to contractors. Effect: The County’s control and compliance were not consistently followed, which required verification of suspension or debarment prior to entering the contract. EB reviewed the vendor’s status on SAM.gov and verified the vendors selected for testing were not suspended and debarred at the date of the audit. Additionally, the OCPW, SSA and OCCR departments did not identify the applicable required provisions of the contract to the contractors at the time of the contract award. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A nonstatistical sample of four (4) out of twelve (12) procurement contracts were sampled from OCPW and eight (8) out of nineteen (19) procurement contracts were sampled from OCCR for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds. The entire population of 1 (contract) was tested from SSA for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds. Repeat Finding from Prior Years: Yes, Finding 2022-003 and 2022-009. Recommendation: We recommend that the OCPW, OCCR and SSA departments adhere to their procurement procedures requiring the suspension or debarment verification is performed prior to entering into a covered transaction. Additionally, we recommend the OCPW, SSA and OCCR departments modify and strengthen its current policies and procedures to ensure that all applicable required provisions are communicated to contractors in accordance with 2 CFR Appendix II to Part 200. Views of Responsible Officials: Management agrees. See separately issued Corrective Action Plan.
Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Financial Assistance Listing Number: 21.027 Federal Grantor: U.S. Department of Treasury Award No. and Year: 2021 Compliance Requirements: Procurement and Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance and Instance of Noncompliance Criteria: 2 CFR section 200.303(a), Internal Controls, states that the 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. Title 2 CFR Section 200.214 of the Uniform Guidance states that the County must comply with 2 CFR part 180, which implements Executive Orders 12549 and 12689. The regulations in 2 CFR part 180 restrict 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. Per 2 CFR Section 180.300, when a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at https://www.sam.gov/SAM/, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity. 2 CFR section Appendix II to Part 200, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards states that in addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain certain provisions, as applicable. Condition: During our testing of the Orange County Public Works (OCPW), Orange County Community Resources (OCCR) and the Social Services Agency’s (SSA) provisions for procurement requirements under the COVID-19 Coronavirus State and Local Fiscal Recovery Funds, we noted the following instances where there was no evidence that the OCPW, OCCR or SSA departments verified the entity was not suspended or debarred or otherwise excluded from participating in the transaction, prior to entering the contract, in accordance with County policy: • Four (4) of four (4) contracts through the OCPW department selected for testing. • Three (3) of eight (8) contracts through the OCCR department selected for testing. • One (1) of one (1) contract through the SSA department selected for testing. The following information was not provided at the time of the contract award for four (4) of four (4) contracts selected for testing within the OCPW department, one (1) of one (1) contract selected within SSA, and five (5) of eight (8) contracts selected for testing within the OCCR department: • Byrd Anti-Lobbying Amendment • Clean Air Act and Federal Pollution Control Act provision The following information was not provided at the time of the contract award for two (2) of four (4) contracts selected for testing within the OCPW department and one (1) of one (1) contract selected for testing within SSA: • Contract Work Hours and Safety Standards Act provision The following information was not provided at the time of the contract award for one (1) of one contract selected for testing within SSA: • Davis-Bacon Act provision • Equal Employment Opportunity provision Cause: The OCPW, OCCR and SSA departments did not follow their policy to verify the information described in the condition prior to entering the transactions and did not consistently ensure that the applicable required provisions were communicated to contractors. Effect: The County’s control and compliance were not consistently followed, which required verification of suspension or debarment prior to entering the contract. EB reviewed the vendor’s status on SAM.gov and verified the vendors selected for testing were not suspended and debarred at the date of the audit. Additionally, the OCPW, SSA and OCCR departments did not identify the applicable required provisions of the contract to the contractors at the time of the contract award. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A nonstatistical sample of four (4) out of twelve (12) procurement contracts were sampled from OCPW and eight (8) out of nineteen (19) procurement contracts were sampled from OCCR for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds. The entire population of 1 (contract) was tested from SSA for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds. Repeat Finding from Prior Years: Yes, Finding 2022-003 and 2022-009. Recommendation: We recommend that the OCPW, OCCR and SSA departments adhere to their procurement procedures requiring the suspension or debarment verification is performed prior to entering into a covered transaction. Additionally, we recommend the OCPW, SSA and OCCR departments modify and strengthen its current policies and procedures to ensure that all applicable required provisions are communicated to contractors in accordance with 2 CFR Appendix II to Part 200. Views of Responsible Officials: Management agrees. See separately issued Corrective Action Plan.
Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Financial Assistance Listing Number: 21.027 Federal Grantor: U.S. Department of Treasury Award No. and Year: 2021 Compliance Requirements: Procurement and Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance and Instance of Noncompliance Criteria: 2 CFR section 200.303(a), Internal Controls, states that the 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. Title 2 CFR Section 200.214 of the Uniform Guidance states that the County must comply with 2 CFR part 180, which implements Executive Orders 12549 and 12689. The regulations in 2 CFR part 180 restrict 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. Per 2 CFR Section 180.300, when a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at https://www.sam.gov/SAM/, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity. 2 CFR section Appendix II to Part 200, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards states that in addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain certain provisions, as applicable. Condition: During our testing of the Orange County Public Works (OCPW), Orange County Community Resources (OCCR) and the Social Services Agency’s (SSA) provisions for procurement requirements under the COVID-19 Coronavirus State and Local Fiscal Recovery Funds, we noted the following instances where there was no evidence that the OCPW, OCCR or SSA departments verified the entity was not suspended or debarred or otherwise excluded from participating in the transaction, prior to entering the contract, in accordance with County policy: • Four (4) of four (4) contracts through the OCPW department selected for testing. • Three (3) of eight (8) contracts through the OCCR department selected for testing. • One (1) of one (1) contract through the SSA department selected for testing. The following information was not provided at the time of the contract award for four (4) of four (4) contracts selected for testing within the OCPW department, one (1) of one (1) contract selected within SSA, and five (5) of eight (8) contracts selected for testing within the OCCR department: • Byrd Anti-Lobbying Amendment • Clean Air Act and Federal Pollution Control Act provision The following information was not provided at the time of the contract award for two (2) of four (4) contracts selected for testing within the OCPW department and one (1) of one (1) contract selected for testing within SSA: • Contract Work Hours and Safety Standards Act provision The following information was not provided at the time of the contract award for one (1) of one contract selected for testing within SSA: • Davis-Bacon Act provision • Equal Employment Opportunity provision Cause: The OCPW, OCCR and SSA departments did not follow their policy to verify the information described in the condition prior to entering the transactions and did not consistently ensure that the applicable required provisions were communicated to contractors. Effect: The County’s control and compliance were not consistently followed, which required verification of suspension or debarment prior to entering the contract. EB reviewed the vendor’s status on SAM.gov and verified the vendors selected for testing were not suspended and debarred at the date of the audit. Additionally, the OCPW, SSA and OCCR departments did not identify the applicable required provisions of the contract to the contractors at the time of the contract award. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A nonstatistical sample of four (4) out of twelve (12) procurement contracts were sampled from OCPW and eight (8) out of nineteen (19) procurement contracts were sampled from OCCR for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds. The entire population of 1 (contract) was tested from SSA for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds. Repeat Finding from Prior Years: Yes, Finding 2022-003 and 2022-009. Recommendation: We recommend that the OCPW, OCCR and SSA departments adhere to their procurement procedures requiring the suspension or debarment verification is performed prior to entering into a covered transaction. Additionally, we recommend the OCPW, SSA and OCCR departments modify and strengthen its current policies and procedures to ensure that all applicable required provisions are communicated to contractors in accordance with 2 CFR Appendix II to Part 200. Views of Responsible Officials: Management agrees. See separately issued Corrective Action Plan.
Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Financial Assistance Listing Number: 21.027 Federal Grantor: U.S. Department of Treasury Award No. and Year: 2021 Compliance Requirements: Procurement and Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance and Instance of Noncompliance Criteria: 2 CFR section 200.303(a), Internal Controls, states that the 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. Title 2 CFR Section 200.214 of the Uniform Guidance states that the County must comply with 2 CFR part 180, which implements Executive Orders 12549 and 12689. The regulations in 2 CFR part 180 restrict 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. Per 2 CFR Section 180.300, when a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at https://www.sam.gov/SAM/, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity. 2 CFR section Appendix II to Part 200, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards states that in addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain certain provisions, as applicable. Condition: During our testing of the Orange County Public Works (OCPW), Orange County Community Resources (OCCR) and the Social Services Agency’s (SSA) provisions for procurement requirements under the COVID-19 Coronavirus State and Local Fiscal Recovery Funds, we noted the following instances where there was no evidence that the OCPW, OCCR or SSA departments verified the entity was not suspended or debarred or otherwise excluded from participating in the transaction, prior to entering the contract, in accordance with County policy: • Four (4) of four (4) contracts through the OCPW department selected for testing. • Three (3) of eight (8) contracts through the OCCR department selected for testing. • One (1) of one (1) contract through the SSA department selected for testing. The following information was not provided at the time of the contract award for four (4) of four (4) contracts selected for testing within the OCPW department, one (1) of one (1) contract selected within SSA, and five (5) of eight (8) contracts selected for testing within the OCCR department: • Byrd Anti-Lobbying Amendment • Clean Air Act and Federal Pollution Control Act provision The following information was not provided at the time of the contract award for two (2) of four (4) contracts selected for testing within the OCPW department and one (1) of one (1) contract selected for testing within SSA: • Contract Work Hours and Safety Standards Act provision The following information was not provided at the time of the contract award for one (1) of one contract selected for testing within SSA: • Davis-Bacon Act provision • Equal Employment Opportunity provision Cause: The OCPW, OCCR and SSA departments did not follow their policy to verify the information described in the condition prior to entering the transactions and did not consistently ensure that the applicable required provisions were communicated to contractors. Effect: The County’s control and compliance were not consistently followed, which required verification of suspension or debarment prior to entering the contract. EB reviewed the vendor’s status on SAM.gov and verified the vendors selected for testing were not suspended and debarred at the date of the audit. Additionally, the OCPW, SSA and OCCR departments did not identify the applicable required provisions of the contract to the contractors at the time of the contract award. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A nonstatistical sample of four (4) out of twelve (12) procurement contracts were sampled from OCPW and eight (8) out of nineteen (19) procurement contracts were sampled from OCCR for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds. The entire population of 1 (contract) was tested from SSA for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds. Repeat Finding from Prior Years: Yes, Finding 2022-003 and 2022-009. Recommendation: We recommend that the OCPW, OCCR and SSA departments adhere to their procurement procedures requiring the suspension or debarment verification is performed prior to entering into a covered transaction. Additionally, we recommend the OCPW, SSA and OCCR departments modify and strengthen its current policies and procedures to ensure that all applicable required provisions are communicated to contractors in accordance with 2 CFR Appendix II to Part 200. Views of Responsible Officials: Management agrees. See separately issued Corrective Action Plan.
Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Financial Assistance Listing Number: 21.027 Federal Grantor: U.S. Department of Treasury Award No. and Year: 2021 Compliance Requirements: Procurement and Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance and Instance of Noncompliance Criteria: 2 CFR section 200.303(a), Internal Controls, states that the 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. Title 2 CFR Section 200.214 of the Uniform Guidance states that the County must comply with 2 CFR part 180, which implements Executive Orders 12549 and 12689. The regulations in 2 CFR part 180 restrict 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. Per 2 CFR Section 180.300, when a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at https://www.sam.gov/SAM/, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity. 2 CFR section Appendix II to Part 200, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards states that in addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain certain provisions, as applicable. Condition: During our testing of the Orange County Public Works (OCPW), Orange County Community Resources (OCCR) and the Social Services Agency’s (SSA) provisions for procurement requirements under the COVID-19 Coronavirus State and Local Fiscal Recovery Funds, we noted the following instances where there was no evidence that the OCPW, OCCR or SSA departments verified the entity was not suspended or debarred or otherwise excluded from participating in the transaction, prior to entering the contract, in accordance with County policy: • Four (4) of four (4) contracts through the OCPW department selected for testing. • Three (3) of eight (8) contracts through the OCCR department selected for testing. • One (1) of one (1) contract through the SSA department selected for testing. The following information was not provided at the time of the contract award for four (4) of four (4) contracts selected for testing within the OCPW department, one (1) of one (1) contract selected within SSA, and five (5) of eight (8) contracts selected for testing within the OCCR department: • Byrd Anti-Lobbying Amendment • Clean Air Act and Federal Pollution Control Act provision The following information was not provided at the time of the contract award for two (2) of four (4) contracts selected for testing within the OCPW department and one (1) of one (1) contract selected for testing within SSA: • Contract Work Hours and Safety Standards Act provision The following information was not provided at the time of the contract award for one (1) of one contract selected for testing within SSA: • Davis-Bacon Act provision • Equal Employment Opportunity provision Cause: The OCPW, OCCR and SSA departments did not follow their policy to verify the information described in the condition prior to entering the transactions and did not consistently ensure that the applicable required provisions were communicated to contractors. Effect: The County’s control and compliance were not consistently followed, which required verification of suspension or debarment prior to entering the contract. EB reviewed the vendor’s status on SAM.gov and verified the vendors selected for testing were not suspended and debarred at the date of the audit. Additionally, the OCPW, SSA and OCCR departments did not identify the applicable required provisions of the contract to the contractors at the time of the contract award. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A nonstatistical sample of four (4) out of twelve (12) procurement contracts were sampled from OCPW and eight (8) out of nineteen (19) procurement contracts were sampled from OCCR for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds. The entire population of 1 (contract) was tested from SSA for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds. Repeat Finding from Prior Years: Yes, Finding 2022-003 and 2022-009. Recommendation: We recommend that the OCPW, OCCR and SSA departments adhere to their procurement procedures requiring the suspension or debarment verification is performed prior to entering into a covered transaction. Additionally, we recommend the OCPW, SSA and OCCR departments modify and strengthen its current policies and procedures to ensure that all applicable required provisions are communicated to contractors in accordance with 2 CFR Appendix II to Part 200. Views of Responsible Officials: Management agrees. See separately issued Corrective Action Plan.
Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Financial Assistance Listing Number: 21.027 Federal Grantor: U.S. Department of Treasury Award No. and Year: 2021 Compliance Requirements: Procurement and Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance and Instance of Noncompliance Criteria: 2 CFR section 200.303(a), Internal Controls, states that the 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. Title 2 CFR Section 200.214 of the Uniform Guidance states that the County must comply with 2 CFR part 180, which implements Executive Orders 12549 and 12689. The regulations in 2 CFR part 180 restrict 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. Per 2 CFR Section 180.300, when a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at https://www.sam.gov/SAM/, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity. 2 CFR section Appendix II to Part 200, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards states that in addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain certain provisions, as applicable. Condition: During our testing of the Orange County Public Works (OCPW), Orange County Community Resources (OCCR) and the Social Services Agency’s (SSA) provisions for procurement requirements under the COVID-19 Coronavirus State and Local Fiscal Recovery Funds, we noted the following instances where there was no evidence that the OCPW, OCCR or SSA departments verified the entity was not suspended or debarred or otherwise excluded from participating in the transaction, prior to entering the contract, in accordance with County policy: • Four (4) of four (4) contracts through the OCPW department selected for testing. • Three (3) of eight (8) contracts through the OCCR department selected for testing. • One (1) of one (1) contract through the SSA department selected for testing. The following information was not provided at the time of the contract award for four (4) of four (4) contracts selected for testing within the OCPW department, one (1) of one (1) contract selected within SSA, and five (5) of eight (8) contracts selected for testing within the OCCR department: • Byrd Anti-Lobbying Amendment • Clean Air Act and Federal Pollution Control Act provision The following information was not provided at the time of the contract award for two (2) of four (4) contracts selected for testing within the OCPW department and one (1) of one (1) contract selected for testing within SSA: • Contract Work Hours and Safety Standards Act provision The following information was not provided at the time of the contract award for one (1) of one contract selected for testing within SSA: • Davis-Bacon Act provision • Equal Employment Opportunity provision Cause: The OCPW, OCCR and SSA departments did not follow their policy to verify the information described in the condition prior to entering the transactions and did not consistently ensure that the applicable required provisions were communicated to contractors. Effect: The County’s control and compliance were not consistently followed, which required verification of suspension or debarment prior to entering the contract. EB reviewed the vendor’s status on SAM.gov and verified the vendors selected for testing were not suspended and debarred at the date of the audit. Additionally, the OCPW, SSA and OCCR departments did not identify the applicable required provisions of the contract to the contractors at the time of the contract award. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A nonstatistical sample of four (4) out of twelve (12) procurement contracts were sampled from OCPW and eight (8) out of nineteen (19) procurement contracts were sampled from OCCR for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds. The entire population of 1 (contract) was tested from SSA for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds. Repeat Finding from Prior Years: Yes, Finding 2022-003 and 2022-009. Recommendation: We recommend that the OCPW, OCCR and SSA departments adhere to their procurement procedures requiring the suspension or debarment verification is performed prior to entering into a covered transaction. Additionally, we recommend the OCPW, SSA and OCCR departments modify and strengthen its current policies and procedures to ensure that all applicable required provisions are communicated to contractors in accordance with 2 CFR Appendix II to Part 200. Views of Responsible Officials: Management agrees. See separately issued Corrective Action Plan.
Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Financial Assistance Listing Number: 21.027 Federal Grantor: U.S. Department of Treasury Award No. and Year: 2021 Compliance Requirements: Procurement and Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance and Instance of Noncompliance Criteria: 2 CFR section 200.303(a), Internal Controls, states that the 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. Title 2 CFR Section 200.214 of the Uniform Guidance states that the County must comply with 2 CFR part 180, which implements Executive Orders 12549 and 12689. The regulations in 2 CFR part 180 restrict 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. Per 2 CFR Section 180.300, when a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at https://www.sam.gov/SAM/, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity. 2 CFR section Appendix II to Part 200, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards states that in addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain certain provisions, as applicable. Condition: During our testing of the Orange County Public Works (OCPW), Orange County Community Resources (OCCR) and the Social Services Agency’s (SSA) provisions for procurement requirements under the COVID-19 Coronavirus State and Local Fiscal Recovery Funds, we noted the following instances where there was no evidence that the OCPW, OCCR or SSA departments verified the entity was not suspended or debarred or otherwise excluded from participating in the transaction, prior to entering the contract, in accordance with County policy: • Four (4) of four (4) contracts through the OCPW department selected for testing. • Three (3) of eight (8) contracts through the OCCR department selected for testing. • One (1) of one (1) contract through the SSA department selected for testing. The following information was not provided at the time of the contract award for four (4) of four (4) contracts selected for testing within the OCPW department, one (1) of one (1) contract selected within SSA, and five (5) of eight (8) contracts selected for testing within the OCCR department: • Byrd Anti-Lobbying Amendment • Clean Air Act and Federal Pollution Control Act provision The following information was not provided at the time of the contract award for two (2) of four (4) contracts selected for testing within the OCPW department and one (1) of one (1) contract selected for testing within SSA: • Contract Work Hours and Safety Standards Act provision The following information was not provided at the time of the contract award for one (1) of one contract selected for testing within SSA: • Davis-Bacon Act provision • Equal Employment Opportunity provision Cause: The OCPW, OCCR and SSA departments did not follow their policy to verify the information described in the condition prior to entering the transactions and did not consistently ensure that the applicable required provisions were communicated to contractors. Effect: The County’s control and compliance were not consistently followed, which required verification of suspension or debarment prior to entering the contract. EB reviewed the vendor’s status on SAM.gov and verified the vendors selected for testing were not suspended and debarred at the date of the audit. Additionally, the OCPW, SSA and OCCR departments did not identify the applicable required provisions of the contract to the contractors at the time of the contract award. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A nonstatistical sample of four (4) out of twelve (12) procurement contracts were sampled from OCPW and eight (8) out of nineteen (19) procurement contracts were sampled from OCCR for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds. The entire population of 1 (contract) was tested from SSA for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds. Repeat Finding from Prior Years: Yes, Finding 2022-003 and 2022-009. Recommendation: We recommend that the OCPW, OCCR and SSA departments adhere to their procurement procedures requiring the suspension or debarment verification is performed prior to entering into a covered transaction. Additionally, we recommend the OCPW, SSA and OCCR departments modify and strengthen its current policies and procedures to ensure that all applicable required provisions are communicated to contractors in accordance with 2 CFR Appendix II to Part 200. Views of Responsible Officials: Management agrees. See separately issued Corrective Action Plan.
Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Financial Assistance Listing Number: 21.027 Federal Grantor: U.S. Department of Treasury Award No. and Year: 2021 Compliance Requirements: Procurement and Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance and Instance of Noncompliance Criteria: 2 CFR section 200.303(a), Internal Controls, states that the 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. Title 2 CFR Section 200.214 of the Uniform Guidance states that the County must comply with 2 CFR part 180, which implements Executive Orders 12549 and 12689. The regulations in 2 CFR part 180 restrict 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. Per 2 CFR Section 180.300, when a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at https://www.sam.gov/SAM/, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity. 2 CFR section Appendix II to Part 200, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards states that in addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain certain provisions, as applicable. Condition: During our testing of the Orange County Public Works (OCPW), Orange County Community Resources (OCCR) and the Social Services Agency’s (SSA) provisions for procurement requirements under the COVID-19 Coronavirus State and Local Fiscal Recovery Funds, we noted the following instances where there was no evidence that the OCPW, OCCR or SSA departments verified the entity was not suspended or debarred or otherwise excluded from participating in the transaction, prior to entering the contract, in accordance with County policy: • Four (4) of four (4) contracts through the OCPW department selected for testing. • Three (3) of eight (8) contracts through the OCCR department selected for testing. • One (1) of one (1) contract through the SSA department selected for testing. The following information was not provided at the time of the contract award for four (4) of four (4) contracts selected for testing within the OCPW department, one (1) of one (1) contract selected within SSA, and five (5) of eight (8) contracts selected for testing within the OCCR department: • Byrd Anti-Lobbying Amendment • Clean Air Act and Federal Pollution Control Act provision The following information was not provided at the time of the contract award for two (2) of four (4) contracts selected for testing within the OCPW department and one (1) of one (1) contract selected for testing within SSA: • Contract Work Hours and Safety Standards Act provision The following information was not provided at the time of the contract award for one (1) of one contract selected for testing within SSA: • Davis-Bacon Act provision • Equal Employment Opportunity provision Cause: The OCPW, OCCR and SSA departments did not follow their policy to verify the information described in the condition prior to entering the transactions and did not consistently ensure that the applicable required provisions were communicated to contractors. Effect: The County’s control and compliance were not consistently followed, which required verification of suspension or debarment prior to entering the contract. EB reviewed the vendor’s status on SAM.gov and verified the vendors selected for testing were not suspended and debarred at the date of the audit. Additionally, the OCPW, SSA and OCCR departments did not identify the applicable required provisions of the contract to the contractors at the time of the contract award. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A nonstatistical sample of four (4) out of twelve (12) procurement contracts were sampled from OCPW and eight (8) out of nineteen (19) procurement contracts were sampled from OCCR for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds. The entire population of 1 (contract) was tested from SSA for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds. Repeat Finding from Prior Years: Yes, Finding 2022-003 and 2022-009. Recommendation: We recommend that the OCPW, OCCR and SSA departments adhere to their procurement procedures requiring the suspension or debarment verification is performed prior to entering into a covered transaction. Additionally, we recommend the OCPW, SSA and OCCR departments modify and strengthen its current policies and procedures to ensure that all applicable required provisions are communicated to contractors in accordance with 2 CFR Appendix II to Part 200. Views of Responsible Officials: Management agrees. See separately issued Corrective Action Plan.
Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Financial Assistance Listing Number: 21.027 Federal Grantor: U.S. Department of Treasury Award No. and Year: 2021 Compliance Requirements: Procurement and Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance and Instance of Noncompliance Criteria: 2 CFR section 200.303(a), Internal Controls, states that the 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. Title 2 CFR Section 200.214 of the Uniform Guidance states that the County must comply with 2 CFR part 180, which implements Executive Orders 12549 and 12689. The regulations in 2 CFR part 180 restrict 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. Per 2 CFR Section 180.300, when a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at https://www.sam.gov/SAM/, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity. 2 CFR section Appendix II to Part 200, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards states that in addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain certain provisions, as applicable. Condition: During our testing of the Orange County Public Works (OCPW), Orange County Community Resources (OCCR) and the Social Services Agency’s (SSA) provisions for procurement requirements under the COVID-19 Coronavirus State and Local Fiscal Recovery Funds, we noted the following instances where there was no evidence that the OCPW, OCCR or SSA departments verified the entity was not suspended or debarred or otherwise excluded from participating in the transaction, prior to entering the contract, in accordance with County policy: • Four (4) of four (4) contracts through the OCPW department selected for testing. • Three (3) of eight (8) contracts through the OCCR department selected for testing. • One (1) of one (1) contract through the SSA department selected for testing. The following information was not provided at the time of the contract award for four (4) of four (4) contracts selected for testing within the OCPW department, one (1) of one (1) contract selected within SSA, and five (5) of eight (8) contracts selected for testing within the OCCR department: • Byrd Anti-Lobbying Amendment • Clean Air Act and Federal Pollution Control Act provision The following information was not provided at the time of the contract award for two (2) of four (4) contracts selected for testing within the OCPW department and one (1) of one (1) contract selected for testing within SSA: • Contract Work Hours and Safety Standards Act provision The following information was not provided at the time of the contract award for one (1) of one contract selected for testing within SSA: • Davis-Bacon Act provision • Equal Employment Opportunity provision Cause: The OCPW, OCCR and SSA departments did not follow their policy to verify the information described in the condition prior to entering the transactions and did not consistently ensure that the applicable required provisions were communicated to contractors. Effect: The County’s control and compliance were not consistently followed, which required verification of suspension or debarment prior to entering the contract. EB reviewed the vendor’s status on SAM.gov and verified the vendors selected for testing were not suspended and debarred at the date of the audit. Additionally, the OCPW, SSA and OCCR departments did not identify the applicable required provisions of the contract to the contractors at the time of the contract award. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A nonstatistical sample of four (4) out of twelve (12) procurement contracts were sampled from OCPW and eight (8) out of nineteen (19) procurement contracts were sampled from OCCR for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds. The entire population of 1 (contract) was tested from SSA for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds. Repeat Finding from Prior Years: Yes, Finding 2022-003 and 2022-009. Recommendation: We recommend that the OCPW, OCCR and SSA departments adhere to their procurement procedures requiring the suspension or debarment verification is performed prior to entering into a covered transaction. Additionally, we recommend the OCPW, SSA and OCCR departments modify and strengthen its current policies and procedures to ensure that all applicable required provisions are communicated to contractors in accordance with 2 CFR Appendix II to Part 200. Views of Responsible Officials: Management agrees. See separately issued Corrective Action Plan.
Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Financial Assistance Listing Number: 21.027 Federal Grantor: U.S. Department of Treasury Award No. and Year: 2021 Compliance Requirements: Procurement and Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance and Instance of Noncompliance Criteria: 2 CFR section 200.303(a), Internal Controls, states that the 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. Title 2 CFR Section 200.214 of the Uniform Guidance states that the County must comply with 2 CFR part 180, which implements Executive Orders 12549 and 12689. The regulations in 2 CFR part 180 restrict 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. Per 2 CFR Section 180.300, when a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at https://www.sam.gov/SAM/, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity. 2 CFR section Appendix II to Part 200, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards states that in addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain certain provisions, as applicable. Condition: During our testing of the Orange County Public Works (OCPW), Orange County Community Resources (OCCR) and the Social Services Agency’s (SSA) provisions for procurement requirements under the COVID-19 Coronavirus State and Local Fiscal Recovery Funds, we noted the following instances where there was no evidence that the OCPW, OCCR or SSA departments verified the entity was not suspended or debarred or otherwise excluded from participating in the transaction, prior to entering the contract, in accordance with County policy: • Four (4) of four (4) contracts through the OCPW department selected for testing. • Three (3) of eight (8) contracts through the OCCR department selected for testing. • One (1) of one (1) contract through the SSA department selected for testing. The following information was not provided at the time of the contract award for four (4) of four (4) contracts selected for testing within the OCPW department, one (1) of one (1) contract selected within SSA, and five (5) of eight (8) contracts selected for testing within the OCCR department: • Byrd Anti-Lobbying Amendment • Clean Air Act and Federal Pollution Control Act provision The following information was not provided at the time of the contract award for two (2) of four (4) contracts selected for testing within the OCPW department and one (1) of one (1) contract selected for testing within SSA: • Contract Work Hours and Safety Standards Act provision The following information was not provided at the time of the contract award for one (1) of one contract selected for testing within SSA: • Davis-Bacon Act provision • Equal Employment Opportunity provision Cause: The OCPW, OCCR and SSA departments did not follow their policy to verify the information described in the condition prior to entering the transactions and did not consistently ensure that the applicable required provisions were communicated to contractors. Effect: The County’s control and compliance were not consistently followed, which required verification of suspension or debarment prior to entering the contract. EB reviewed the vendor’s status on SAM.gov and verified the vendors selected for testing were not suspended and debarred at the date of the audit. Additionally, the OCPW, SSA and OCCR departments did not identify the applicable required provisions of the contract to the contractors at the time of the contract award. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A nonstatistical sample of four (4) out of twelve (12) procurement contracts were sampled from OCPW and eight (8) out of nineteen (19) procurement contracts were sampled from OCCR for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds. The entire population of 1 (contract) was tested from SSA for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds. Repeat Finding from Prior Years: Yes, Finding 2022-003 and 2022-009. Recommendation: We recommend that the OCPW, OCCR and SSA departments adhere to their procurement procedures requiring the suspension or debarment verification is performed prior to entering into a covered transaction. Additionally, we recommend the OCPW, SSA and OCCR departments modify and strengthen its current policies and procedures to ensure that all applicable required provisions are communicated to contractors in accordance with 2 CFR Appendix II to Part 200. Views of Responsible Officials: Management agrees. See separately issued Corrective Action Plan.
Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Financial Assistance Listing Number: 21.027 Federal Grantor: U.S. Department of Treasury Award No. and Year: 2021 Compliance Requirements: Procurement and Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance and Instance of Noncompliance Criteria: 2 CFR section 200.303(a), Internal Controls, states that the 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. Title 2 CFR Section 200.214 of the Uniform Guidance states that the County must comply with 2 CFR part 180, which implements Executive Orders 12549 and 12689. The regulations in 2 CFR part 180 restrict 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. Per 2 CFR Section 180.300, when a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at https://www.sam.gov/SAM/, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity. 2 CFR section Appendix II to Part 200, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards states that in addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain certain provisions, as applicable. Condition: During our testing of the Orange County Public Works (OCPW), Orange County Community Resources (OCCR) and the Social Services Agency’s (SSA) provisions for procurement requirements under the COVID-19 Coronavirus State and Local Fiscal Recovery Funds, we noted the following instances where there was no evidence that the OCPW, OCCR or SSA departments verified the entity was not suspended or debarred or otherwise excluded from participating in the transaction, prior to entering the contract, in accordance with County policy: • Four (4) of four (4) contracts through the OCPW department selected for testing. • Three (3) of eight (8) contracts through the OCCR department selected for testing. • One (1) of one (1) contract through the SSA department selected for testing. The following information was not provided at the time of the contract award for four (4) of four (4) contracts selected for testing within the OCPW department, one (1) of one (1) contract selected within SSA, and five (5) of eight (8) contracts selected for testing within the OCCR department: • Byrd Anti-Lobbying Amendment • Clean Air Act and Federal Pollution Control Act provision The following information was not provided at the time of the contract award for two (2) of four (4) contracts selected for testing within the OCPW department and one (1) of one (1) contract selected for testing within SSA: • Contract Work Hours and Safety Standards Act provision The following information was not provided at the time of the contract award for one (1) of one contract selected for testing within SSA: • Davis-Bacon Act provision • Equal Employment Opportunity provision Cause: The OCPW, OCCR and SSA departments did not follow their policy to verify the information described in the condition prior to entering the transactions and did not consistently ensure that the applicable required provisions were communicated to contractors. Effect: The County’s control and compliance were not consistently followed, which required verification of suspension or debarment prior to entering the contract. EB reviewed the vendor’s status on SAM.gov and verified the vendors selected for testing were not suspended and debarred at the date of the audit. Additionally, the OCPW, SSA and OCCR departments did not identify the applicable required provisions of the contract to the contractors at the time of the contract award. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A nonstatistical sample of four (4) out of twelve (12) procurement contracts were sampled from OCPW and eight (8) out of nineteen (19) procurement contracts were sampled from OCCR for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds. The entire population of 1 (contract) was tested from SSA for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds. Repeat Finding from Prior Years: Yes, Finding 2022-003 and 2022-009. Recommendation: We recommend that the OCPW, OCCR and SSA departments adhere to their procurement procedures requiring the suspension or debarment verification is performed prior to entering into a covered transaction. Additionally, we recommend the OCPW, SSA and OCCR departments modify and strengthen its current policies and procedures to ensure that all applicable required provisions are communicated to contractors in accordance with 2 CFR Appendix II to Part 200. Views of Responsible Officials: Management agrees. See separately issued Corrective Action Plan.
2023-019. Suspension and Debarment Not Verified Before Awarding Contracts Governor’s Office of Planning and Budget (Finding Type: Significant Deficiency) Federal Agency: Department of the Treasury Assistance Listing Number and Title: 21.027 Coronavirus State & Local Fiscal Recovery Funds Federal Award Number: N/A Questioned Costs: $0 Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: 2022-022, 2021-022 Upon receiving a Coronavirus State and Local Fiscal Recovery Fund (SLFRF) allocation, the Utah Board of Higher Education (USHE) neither established internal controls to ensure compliance with federal suspension and debarment requirements for awarded contracts, nor did they verify whether contracted parties were suspended or debarred prior to contracting with the parties. The two contracts awarded by USHE out of 44 contracts reviewed statewide did not check for suspension and debarment requirements prior to the award. The Treasury’s Final Rule General provisions and the Interim Final Rule issued May 17, 2021 states that “payments from the…Funds…will be subject to the provisions of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200),” which includes suspension and debarment requirements (see 2 CFR 200.214). Uniform Guidance (2 CFR part 200.303) also requires non-federal entities to “establish and maintain effective internal control…that provides reasonable assurance that the non-federal entity [manages the program] in compliance with…terms and conditions of the federal award.” Given USHE’s inexperience with federal programs, USHE was unaware the suspension and debarment requirements were applicable to its program, and GOPB did not sufficiently communicate applicable federal program requirements. Failure to properly implement controls and review each contracted party for suspension and debarment could result in federally debarred entities receiving grant awards. Recommendations: We recommend GOPB assist agencies, including USHE, to gain an understanding of suspension and debarment requirements and establish effective internal controls to ensure compliance with these requirements. GOPB’s Response: GOPB agrees with this finding. This is a repeat finding from the 2022 single audit because there was insufficient time to implement the previous corrective action plan between the release of the audit and end of fiscal year 2023. In September 2022, GOPB distributed an ARPA Agency Checklist to remind those managing SLFR funds of compliance, monitoring, and reporting requirements, which included the requirement of monitoring for suspension and debarment. This checklist tool was not consistently used previously. A retroactive check was performed and no entities receiving federal funds had been suspended or debarred. Follow-up training on ARPA monitoring was done April 3 and June 7, 2023. GOPB also reviewed Final Rule FAQ 13.15 which clarifies that revenue replacement dollars have different subrecipient monitoring standards, including an exemption from suspension and debarment checks in 2 CFR 200.214.
2023-019. Suspension and Debarment Not Verified Before Awarding Contracts Governor’s Office of Planning and Budget (Finding Type: Significant Deficiency) Federal Agency: Department of the Treasury Assistance Listing Number and Title: 21.027 Coronavirus State & Local Fiscal Recovery Funds Federal Award Number: N/A Questioned Costs: $0 Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: 2022-022, 2021-022 Upon receiving a Coronavirus State and Local Fiscal Recovery Fund (SLFRF) allocation, the Utah Board of Higher Education (USHE) neither established internal controls to ensure compliance with federal suspension and debarment requirements for awarded contracts, nor did they verify whether contracted parties were suspended or debarred prior to contracting with the parties. The two contracts awarded by USHE out of 44 contracts reviewed statewide did not check for suspension and debarment requirements prior to the award. The Treasury’s Final Rule General provisions and the Interim Final Rule issued May 17, 2021 states that “payments from the…Funds…will be subject to the provisions of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200),” which includes suspension and debarment requirements (see 2 CFR 200.214). Uniform Guidance (2 CFR part 200.303) also requires non-federal entities to “establish and maintain effective internal control…that provides reasonable assurance that the non-federal entity [manages the program] in compliance with…terms and conditions of the federal award.” Given USHE’s inexperience with federal programs, USHE was unaware the suspension and debarment requirements were applicable to its program, and GOPB did not sufficiently communicate applicable federal program requirements. Failure to properly implement controls and review each contracted party for suspension and debarment could result in federally debarred entities receiving grant awards. Recommendations: We recommend GOPB assist agencies, including USHE, to gain an understanding of suspension and debarment requirements and establish effective internal controls to ensure compliance with these requirements. GOPB’s Response: GOPB agrees with this finding. This is a repeat finding from the 2022 single audit because there was insufficient time to implement the previous corrective action plan between the release of the audit and end of fiscal year 2023. In September 2022, GOPB distributed an ARPA Agency Checklist to remind those managing SLFR funds of compliance, monitoring, and reporting requirements, which included the requirement of monitoring for suspension and debarment. This checklist tool was not consistently used previously. A retroactive check was performed and no entities receiving federal funds had been suspended or debarred. Follow-up training on ARPA monitoring was done April 3 and June 7, 2023. GOPB also reviewed Final Rule FAQ 13.15 which clarifies that revenue replacement dollars have different subrecipient monitoring standards, including an exemption from suspension and debarment checks in 2 CFR 200.214.
2023-019. Suspension and Debarment Not Verified Before Awarding Contracts Governor’s Office of Planning and Budget (Finding Type: Significant Deficiency) Federal Agency: Department of the Treasury Assistance Listing Number and Title: 21.027 Coronavirus State & Local Fiscal Recovery Funds Federal Award Number: N/A Questioned Costs: $0 Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: 2022-022, 2021-022 Upon receiving a Coronavirus State and Local Fiscal Recovery Fund (SLFRF) allocation, the Utah Board of Higher Education (USHE) neither established internal controls to ensure compliance with federal suspension and debarment requirements for awarded contracts, nor did they verify whether contracted parties were suspended or debarred prior to contracting with the parties. The two contracts awarded by USHE out of 44 contracts reviewed statewide did not check for suspension and debarment requirements prior to the award. The Treasury’s Final Rule General provisions and the Interim Final Rule issued May 17, 2021 states that “payments from the…Funds…will be subject to the provisions of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200),” which includes suspension and debarment requirements (see 2 CFR 200.214). Uniform Guidance (2 CFR part 200.303) also requires non-federal entities to “establish and maintain effective internal control…that provides reasonable assurance that the non-federal entity [manages the program] in compliance with…terms and conditions of the federal award.” Given USHE’s inexperience with federal programs, USHE was unaware the suspension and debarment requirements were applicable to its program, and GOPB did not sufficiently communicate applicable federal program requirements. Failure to properly implement controls and review each contracted party for suspension and debarment could result in federally debarred entities receiving grant awards. Recommendations: We recommend GOPB assist agencies, including USHE, to gain an understanding of suspension and debarment requirements and establish effective internal controls to ensure compliance with these requirements. GOPB’s Response: GOPB agrees with this finding. This is a repeat finding from the 2022 single audit because there was insufficient time to implement the previous corrective action plan between the release of the audit and end of fiscal year 2023. In September 2022, GOPB distributed an ARPA Agency Checklist to remind those managing SLFR funds of compliance, monitoring, and reporting requirements, which included the requirement of monitoring for suspension and debarment. This checklist tool was not consistently used previously. A retroactive check was performed and no entities receiving federal funds had been suspended or debarred. Follow-up training on ARPA monitoring was done April 3 and June 7, 2023. GOPB also reviewed Final Rule FAQ 13.15 which clarifies that revenue replacement dollars have different subrecipient monitoring standards, including an exemption from suspension and debarment checks in 2 CFR 200.214.
2023-019. Suspension and Debarment Not Verified Before Awarding Contracts Governor’s Office of Planning and Budget (Finding Type: Significant Deficiency) Federal Agency: Department of the Treasury Assistance Listing Number and Title: 21.027 Coronavirus State & Local Fiscal Recovery Funds Federal Award Number: N/A Questioned Costs: $0 Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: 2022-022, 2021-022 Upon receiving a Coronavirus State and Local Fiscal Recovery Fund (SLFRF) allocation, the Utah Board of Higher Education (USHE) neither established internal controls to ensure compliance with federal suspension and debarment requirements for awarded contracts, nor did they verify whether contracted parties were suspended or debarred prior to contracting with the parties. The two contracts awarded by USHE out of 44 contracts reviewed statewide did not check for suspension and debarment requirements prior to the award. The Treasury’s Final Rule General provisions and the Interim Final Rule issued May 17, 2021 states that “payments from the…Funds…will be subject to the provisions of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200),” which includes suspension and debarment requirements (see 2 CFR 200.214). Uniform Guidance (2 CFR part 200.303) also requires non-federal entities to “establish and maintain effective internal control…that provides reasonable assurance that the non-federal entity [manages the program] in compliance with…terms and conditions of the federal award.” Given USHE’s inexperience with federal programs, USHE was unaware the suspension and debarment requirements were applicable to its program, and GOPB did not sufficiently communicate applicable federal program requirements. Failure to properly implement controls and review each contracted party for suspension and debarment could result in federally debarred entities receiving grant awards. Recommendations: We recommend GOPB assist agencies, including USHE, to gain an understanding of suspension and debarment requirements and establish effective internal controls to ensure compliance with these requirements. GOPB’s Response: GOPB agrees with this finding. This is a repeat finding from the 2022 single audit because there was insufficient time to implement the previous corrective action plan between the release of the audit and end of fiscal year 2023. In September 2022, GOPB distributed an ARPA Agency Checklist to remind those managing SLFR funds of compliance, monitoring, and reporting requirements, which included the requirement of monitoring for suspension and debarment. This checklist tool was not consistently used previously. A retroactive check was performed and no entities receiving federal funds had been suspended or debarred. Follow-up training on ARPA monitoring was done April 3 and June 7, 2023. GOPB also reviewed Final Rule FAQ 13.15 which clarifies that revenue replacement dollars have different subrecipient monitoring standards, including an exemption from suspension and debarment checks in 2 CFR 200.214.
2023-019. Suspension and Debarment Not Verified Before Awarding Contracts Governor’s Office of Planning and Budget (Finding Type: Significant Deficiency) Federal Agency: Department of the Treasury Assistance Listing Number and Title: 21.027 Coronavirus State & Local Fiscal Recovery Funds Federal Award Number: N/A Questioned Costs: $0 Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: 2022-022, 2021-022 Upon receiving a Coronavirus State and Local Fiscal Recovery Fund (SLFRF) allocation, the Utah Board of Higher Education (USHE) neither established internal controls to ensure compliance with federal suspension and debarment requirements for awarded contracts, nor did they verify whether contracted parties were suspended or debarred prior to contracting with the parties. The two contracts awarded by USHE out of 44 contracts reviewed statewide did not check for suspension and debarment requirements prior to the award. The Treasury’s Final Rule General provisions and the Interim Final Rule issued May 17, 2021 states that “payments from the…Funds…will be subject to the provisions of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200),” which includes suspension and debarment requirements (see 2 CFR 200.214). Uniform Guidance (2 CFR part 200.303) also requires non-federal entities to “establish and maintain effective internal control…that provides reasonable assurance that the non-federal entity [manages the program] in compliance with…terms and conditions of the federal award.” Given USHE’s inexperience with federal programs, USHE was unaware the suspension and debarment requirements were applicable to its program, and GOPB did not sufficiently communicate applicable federal program requirements. Failure to properly implement controls and review each contracted party for suspension and debarment could result in federally debarred entities receiving grant awards. Recommendations: We recommend GOPB assist agencies, including USHE, to gain an understanding of suspension and debarment requirements and establish effective internal controls to ensure compliance with these requirements. GOPB’s Response: GOPB agrees with this finding. This is a repeat finding from the 2022 single audit because there was insufficient time to implement the previous corrective action plan between the release of the audit and end of fiscal year 2023. In September 2022, GOPB distributed an ARPA Agency Checklist to remind those managing SLFR funds of compliance, monitoring, and reporting requirements, which included the requirement of monitoring for suspension and debarment. This checklist tool was not consistently used previously. A retroactive check was performed and no entities receiving federal funds had been suspended or debarred. Follow-up training on ARPA monitoring was done April 3 and June 7, 2023. GOPB also reviewed Final Rule FAQ 13.15 which clarifies that revenue replacement dollars have different subrecipient monitoring standards, including an exemption from suspension and debarment checks in 2 CFR 200.214.
2023-019. Suspension and Debarment Not Verified Before Awarding Contracts Governor’s Office of Planning and Budget (Finding Type: Significant Deficiency) Federal Agency: Department of the Treasury Assistance Listing Number and Title: 21.027 Coronavirus State & Local Fiscal Recovery Funds Federal Award Number: N/A Questioned Costs: $0 Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: 2022-022, 2021-022 Upon receiving a Coronavirus State and Local Fiscal Recovery Fund (SLFRF) allocation, the Utah Board of Higher Education (USHE) neither established internal controls to ensure compliance with federal suspension and debarment requirements for awarded contracts, nor did they verify whether contracted parties were suspended or debarred prior to contracting with the parties. The two contracts awarded by USHE out of 44 contracts reviewed statewide did not check for suspension and debarment requirements prior to the award. The Treasury’s Final Rule General provisions and the Interim Final Rule issued May 17, 2021 states that “payments from the…Funds…will be subject to the provisions of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200),” which includes suspension and debarment requirements (see 2 CFR 200.214). Uniform Guidance (2 CFR part 200.303) also requires non-federal entities to “establish and maintain effective internal control…that provides reasonable assurance that the non-federal entity [manages the program] in compliance with…terms and conditions of the federal award.” Given USHE’s inexperience with federal programs, USHE was unaware the suspension and debarment requirements were applicable to its program, and GOPB did not sufficiently communicate applicable federal program requirements. Failure to properly implement controls and review each contracted party for suspension and debarment could result in federally debarred entities receiving grant awards. Recommendations: We recommend GOPB assist agencies, including USHE, to gain an understanding of suspension and debarment requirements and establish effective internal controls to ensure compliance with these requirements. GOPB’s Response: GOPB agrees with this finding. This is a repeat finding from the 2022 single audit because there was insufficient time to implement the previous corrective action plan between the release of the audit and end of fiscal year 2023. In September 2022, GOPB distributed an ARPA Agency Checklist to remind those managing SLFR funds of compliance, monitoring, and reporting requirements, which included the requirement of monitoring for suspension and debarment. This checklist tool was not consistently used previously. A retroactive check was performed and no entities receiving federal funds had been suspended or debarred. Follow-up training on ARPA monitoring was done April 3 and June 7, 2023. GOPB also reviewed Final Rule FAQ 13.15 which clarifies that revenue replacement dollars have different subrecipient monitoring standards, including an exemption from suspension and debarment checks in 2 CFR 200.214.
2023-019. Suspension and Debarment Not Verified Before Awarding Contracts Governor’s Office of Planning and Budget (Finding Type: Significant Deficiency) Federal Agency: Department of the Treasury Assistance Listing Number and Title: 21.027 Coronavirus State & Local Fiscal Recovery Funds Federal Award Number: N/A Questioned Costs: $0 Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: 2022-022, 2021-022 Upon receiving a Coronavirus State and Local Fiscal Recovery Fund (SLFRF) allocation, the Utah Board of Higher Education (USHE) neither established internal controls to ensure compliance with federal suspension and debarment requirements for awarded contracts, nor did they verify whether contracted parties were suspended or debarred prior to contracting with the parties. The two contracts awarded by USHE out of 44 contracts reviewed statewide did not check for suspension and debarment requirements prior to the award. The Treasury’s Final Rule General provisions and the Interim Final Rule issued May 17, 2021 states that “payments from the…Funds…will be subject to the provisions of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200),” which includes suspension and debarment requirements (see 2 CFR 200.214). Uniform Guidance (2 CFR part 200.303) also requires non-federal entities to “establish and maintain effective internal control…that provides reasonable assurance that the non-federal entity [manages the program] in compliance with…terms and conditions of the federal award.” Given USHE’s inexperience with federal programs, USHE was unaware the suspension and debarment requirements were applicable to its program, and GOPB did not sufficiently communicate applicable federal program requirements. Failure to properly implement controls and review each contracted party for suspension and debarment could result in federally debarred entities receiving grant awards. Recommendations: We recommend GOPB assist agencies, including USHE, to gain an understanding of suspension and debarment requirements and establish effective internal controls to ensure compliance with these requirements. GOPB’s Response: GOPB agrees with this finding. This is a repeat finding from the 2022 single audit because there was insufficient time to implement the previous corrective action plan between the release of the audit and end of fiscal year 2023. In September 2022, GOPB distributed an ARPA Agency Checklist to remind those managing SLFR funds of compliance, monitoring, and reporting requirements, which included the requirement of monitoring for suspension and debarment. This checklist tool was not consistently used previously. A retroactive check was performed and no entities receiving federal funds had been suspended or debarred. Follow-up training on ARPA monitoring was done April 3 and June 7, 2023. GOPB also reviewed Final Rule FAQ 13.15 which clarifies that revenue replacement dollars have different subrecipient monitoring standards, including an exemption from suspension and debarment checks in 2 CFR 200.214.
2023-019. Suspension and Debarment Not Verified Before Awarding Contracts Governor’s Office of Planning and Budget (Finding Type: Significant Deficiency) Federal Agency: Department of the Treasury Assistance Listing Number and Title: 21.027 Coronavirus State & Local Fiscal Recovery Funds Federal Award Number: N/A Questioned Costs: $0 Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: 2022-022, 2021-022 Upon receiving a Coronavirus State and Local Fiscal Recovery Fund (SLFRF) allocation, the Utah Board of Higher Education (USHE) neither established internal controls to ensure compliance with federal suspension and debarment requirements for awarded contracts, nor did they verify whether contracted parties were suspended or debarred prior to contracting with the parties. The two contracts awarded by USHE out of 44 contracts reviewed statewide did not check for suspension and debarment requirements prior to the award. The Treasury’s Final Rule General provisions and the Interim Final Rule issued May 17, 2021 states that “payments from the…Funds…will be subject to the provisions of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200),” which includes suspension and debarment requirements (see 2 CFR 200.214). Uniform Guidance (2 CFR part 200.303) also requires non-federal entities to “establish and maintain effective internal control…that provides reasonable assurance that the non-federal entity [manages the program] in compliance with…terms and conditions of the federal award.” Given USHE’s inexperience with federal programs, USHE was unaware the suspension and debarment requirements were applicable to its program, and GOPB did not sufficiently communicate applicable federal program requirements. Failure to properly implement controls and review each contracted party for suspension and debarment could result in federally debarred entities receiving grant awards. Recommendations: We recommend GOPB assist agencies, including USHE, to gain an understanding of suspension and debarment requirements and establish effective internal controls to ensure compliance with these requirements. GOPB’s Response: GOPB agrees with this finding. This is a repeat finding from the 2022 single audit because there was insufficient time to implement the previous corrective action plan between the release of the audit and end of fiscal year 2023. In September 2022, GOPB distributed an ARPA Agency Checklist to remind those managing SLFR funds of compliance, monitoring, and reporting requirements, which included the requirement of monitoring for suspension and debarment. This checklist tool was not consistently used previously. A retroactive check was performed and no entities receiving federal funds had been suspended or debarred. Follow-up training on ARPA monitoring was done April 3 and June 7, 2023. GOPB also reviewed Final Rule FAQ 13.15 which clarifies that revenue replacement dollars have different subrecipient monitoring standards, including an exemption from suspension and debarment checks in 2 CFR 200.214.
2023-019. Suspension and Debarment Not Verified Before Awarding Contracts Governor’s Office of Planning and Budget (Finding Type: Significant Deficiency) Federal Agency: Department of the Treasury Assistance Listing Number and Title: 21.027 Coronavirus State & Local Fiscal Recovery Funds Federal Award Number: N/A Questioned Costs: $0 Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: 2022-022, 2021-022 Upon receiving a Coronavirus State and Local Fiscal Recovery Fund (SLFRF) allocation, the Utah Board of Higher Education (USHE) neither established internal controls to ensure compliance with federal suspension and debarment requirements for awarded contracts, nor did they verify whether contracted parties were suspended or debarred prior to contracting with the parties. The two contracts awarded by USHE out of 44 contracts reviewed statewide did not check for suspension and debarment requirements prior to the award. The Treasury’s Final Rule General provisions and the Interim Final Rule issued May 17, 2021 states that “payments from the…Funds…will be subject to the provisions of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200),” which includes suspension and debarment requirements (see 2 CFR 200.214). Uniform Guidance (2 CFR part 200.303) also requires non-federal entities to “establish and maintain effective internal control…that provides reasonable assurance that the non-federal entity [manages the program] in compliance with…terms and conditions of the federal award.” Given USHE’s inexperience with federal programs, USHE was unaware the suspension and debarment requirements were applicable to its program, and GOPB did not sufficiently communicate applicable federal program requirements. Failure to properly implement controls and review each contracted party for suspension and debarment could result in federally debarred entities receiving grant awards. Recommendations: We recommend GOPB assist agencies, including USHE, to gain an understanding of suspension and debarment requirements and establish effective internal controls to ensure compliance with these requirements. GOPB’s Response: GOPB agrees with this finding. This is a repeat finding from the 2022 single audit because there was insufficient time to implement the previous corrective action plan between the release of the audit and end of fiscal year 2023. In September 2022, GOPB distributed an ARPA Agency Checklist to remind those managing SLFR funds of compliance, monitoring, and reporting requirements, which included the requirement of monitoring for suspension and debarment. This checklist tool was not consistently used previously. A retroactive check was performed and no entities receiving federal funds had been suspended or debarred. Follow-up training on ARPA monitoring was done April 3 and June 7, 2023. GOPB also reviewed Final Rule FAQ 13.15 which clarifies that revenue replacement dollars have different subrecipient monitoring standards, including an exemption from suspension and debarment checks in 2 CFR 200.214.
2023-019. Suspension and Debarment Not Verified Before Awarding Contracts Governor’s Office of Planning and Budget (Finding Type: Significant Deficiency) Federal Agency: Department of the Treasury Assistance Listing Number and Title: 21.027 Coronavirus State & Local Fiscal Recovery Funds Federal Award Number: N/A Questioned Costs: $0 Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: 2022-022, 2021-022 Upon receiving a Coronavirus State and Local Fiscal Recovery Fund (SLFRF) allocation, the Utah Board of Higher Education (USHE) neither established internal controls to ensure compliance with federal suspension and debarment requirements for awarded contracts, nor did they verify whether contracted parties were suspended or debarred prior to contracting with the parties. The two contracts awarded by USHE out of 44 contracts reviewed statewide did not check for suspension and debarment requirements prior to the award. The Treasury’s Final Rule General provisions and the Interim Final Rule issued May 17, 2021 states that “payments from the…Funds…will be subject to the provisions of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200),” which includes suspension and debarment requirements (see 2 CFR 200.214). Uniform Guidance (2 CFR part 200.303) also requires non-federal entities to “establish and maintain effective internal control…that provides reasonable assurance that the non-federal entity [manages the program] in compliance with…terms and conditions of the federal award.” Given USHE’s inexperience with federal programs, USHE was unaware the suspension and debarment requirements were applicable to its program, and GOPB did not sufficiently communicate applicable federal program requirements. Failure to properly implement controls and review each contracted party for suspension and debarment could result in federally debarred entities receiving grant awards. Recommendations: We recommend GOPB assist agencies, including USHE, to gain an understanding of suspension and debarment requirements and establish effective internal controls to ensure compliance with these requirements. GOPB’s Response: GOPB agrees with this finding. This is a repeat finding from the 2022 single audit because there was insufficient time to implement the previous corrective action plan between the release of the audit and end of fiscal year 2023. In September 2022, GOPB distributed an ARPA Agency Checklist to remind those managing SLFR funds of compliance, monitoring, and reporting requirements, which included the requirement of monitoring for suspension and debarment. This checklist tool was not consistently used previously. A retroactive check was performed and no entities receiving federal funds had been suspended or debarred. Follow-up training on ARPA monitoring was done April 3 and June 7, 2023. GOPB also reviewed Final Rule FAQ 13.15 which clarifies that revenue replacement dollars have different subrecipient monitoring standards, including an exemption from suspension and debarment checks in 2 CFR 200.214.
2023-019. Suspension and Debarment Not Verified Before Awarding Contracts Governor’s Office of Planning and Budget (Finding Type: Significant Deficiency) Federal Agency: Department of the Treasury Assistance Listing Number and Title: 21.027 Coronavirus State & Local Fiscal Recovery Funds Federal Award Number: N/A Questioned Costs: $0 Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: 2022-022, 2021-022 Upon receiving a Coronavirus State and Local Fiscal Recovery Fund (SLFRF) allocation, the Utah Board of Higher Education (USHE) neither established internal controls to ensure compliance with federal suspension and debarment requirements for awarded contracts, nor did they verify whether contracted parties were suspended or debarred prior to contracting with the parties. The two contracts awarded by USHE out of 44 contracts reviewed statewide did not check for suspension and debarment requirements prior to the award. The Treasury’s Final Rule General provisions and the Interim Final Rule issued May 17, 2021 states that “payments from the…Funds…will be subject to the provisions of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200),” which includes suspension and debarment requirements (see 2 CFR 200.214). Uniform Guidance (2 CFR part 200.303) also requires non-federal entities to “establish and maintain effective internal control…that provides reasonable assurance that the non-federal entity [manages the program] in compliance with…terms and conditions of the federal award.” Given USHE’s inexperience with federal programs, USHE was unaware the suspension and debarment requirements were applicable to its program, and GOPB did not sufficiently communicate applicable federal program requirements. Failure to properly implement controls and review each contracted party for suspension and debarment could result in federally debarred entities receiving grant awards. Recommendations: We recommend GOPB assist agencies, including USHE, to gain an understanding of suspension and debarment requirements and establish effective internal controls to ensure compliance with these requirements. GOPB’s Response: GOPB agrees with this finding. This is a repeat finding from the 2022 single audit because there was insufficient time to implement the previous corrective action plan between the release of the audit and end of fiscal year 2023. In September 2022, GOPB distributed an ARPA Agency Checklist to remind those managing SLFR funds of compliance, monitoring, and reporting requirements, which included the requirement of monitoring for suspension and debarment. This checklist tool was not consistently used previously. A retroactive check was performed and no entities receiving federal funds had been suspended or debarred. Follow-up training on ARPA monitoring was done April 3 and June 7, 2023. GOPB also reviewed Final Rule FAQ 13.15 which clarifies that revenue replacement dollars have different subrecipient monitoring standards, including an exemption from suspension and debarment checks in 2 CFR 200.214.
2023-019. Suspension and Debarment Not Verified Before Awarding Contracts Governor’s Office of Planning and Budget (Finding Type: Significant Deficiency) Federal Agency: Department of the Treasury Assistance Listing Number and Title: 21.027 Coronavirus State & Local Fiscal Recovery Funds Federal Award Number: N/A Questioned Costs: $0 Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: 2022-022, 2021-022 Upon receiving a Coronavirus State and Local Fiscal Recovery Fund (SLFRF) allocation, the Utah Board of Higher Education (USHE) neither established internal controls to ensure compliance with federal suspension and debarment requirements for awarded contracts, nor did they verify whether contracted parties were suspended or debarred prior to contracting with the parties. The two contracts awarded by USHE out of 44 contracts reviewed statewide did not check for suspension and debarment requirements prior to the award. The Treasury’s Final Rule General provisions and the Interim Final Rule issued May 17, 2021 states that “payments from the…Funds…will be subject to the provisions of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200),” which includes suspension and debarment requirements (see 2 CFR 200.214). Uniform Guidance (2 CFR part 200.303) also requires non-federal entities to “establish and maintain effective internal control…that provides reasonable assurance that the non-federal entity [manages the program] in compliance with…terms and conditions of the federal award.” Given USHE’s inexperience with federal programs, USHE was unaware the suspension and debarment requirements were applicable to its program, and GOPB did not sufficiently communicate applicable federal program requirements. Failure to properly implement controls and review each contracted party for suspension and debarment could result in federally debarred entities receiving grant awards. Recommendations: We recommend GOPB assist agencies, including USHE, to gain an understanding of suspension and debarment requirements and establish effective internal controls to ensure compliance with these requirements. GOPB’s Response: GOPB agrees with this finding. This is a repeat finding from the 2022 single audit because there was insufficient time to implement the previous corrective action plan between the release of the audit and end of fiscal year 2023. In September 2022, GOPB distributed an ARPA Agency Checklist to remind those managing SLFR funds of compliance, monitoring, and reporting requirements, which included the requirement of monitoring for suspension and debarment. This checklist tool was not consistently used previously. A retroactive check was performed and no entities receiving federal funds had been suspended or debarred. Follow-up training on ARPA monitoring was done April 3 and June 7, 2023. GOPB also reviewed Final Rule FAQ 13.15 which clarifies that revenue replacement dollars have different subrecipient monitoring standards, including an exemption from suspension and debarment checks in 2 CFR 200.214.
2023-019. Suspension and Debarment Not Verified Before Awarding Contracts Governor’s Office of Planning and Budget (Finding Type: Significant Deficiency) Federal Agency: Department of the Treasury Assistance Listing Number and Title: 21.027 Coronavirus State & Local Fiscal Recovery Funds Federal Award Number: N/A Questioned Costs: $0 Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: 2022-022, 2021-022 Upon receiving a Coronavirus State and Local Fiscal Recovery Fund (SLFRF) allocation, the Utah Board of Higher Education (USHE) neither established internal controls to ensure compliance with federal suspension and debarment requirements for awarded contracts, nor did they verify whether contracted parties were suspended or debarred prior to contracting with the parties. The two contracts awarded by USHE out of 44 contracts reviewed statewide did not check for suspension and debarment requirements prior to the award. The Treasury’s Final Rule General provisions and the Interim Final Rule issued May 17, 2021 states that “payments from the…Funds…will be subject to the provisions of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200),” which includes suspension and debarment requirements (see 2 CFR 200.214). Uniform Guidance (2 CFR part 200.303) also requires non-federal entities to “establish and maintain effective internal control…that provides reasonable assurance that the non-federal entity [manages the program] in compliance with…terms and conditions of the federal award.” Given USHE’s inexperience with federal programs, USHE was unaware the suspension and debarment requirements were applicable to its program, and GOPB did not sufficiently communicate applicable federal program requirements. Failure to properly implement controls and review each contracted party for suspension and debarment could result in federally debarred entities receiving grant awards. Recommendations: We recommend GOPB assist agencies, including USHE, to gain an understanding of suspension and debarment requirements and establish effective internal controls to ensure compliance with these requirements. GOPB’s Response: GOPB agrees with this finding. This is a repeat finding from the 2022 single audit because there was insufficient time to implement the previous corrective action plan between the release of the audit and end of fiscal year 2023. In September 2022, GOPB distributed an ARPA Agency Checklist to remind those managing SLFR funds of compliance, monitoring, and reporting requirements, which included the requirement of monitoring for suspension and debarment. This checklist tool was not consistently used previously. A retroactive check was performed and no entities receiving federal funds had been suspended or debarred. Follow-up training on ARPA monitoring was done April 3 and June 7, 2023. GOPB also reviewed Final Rule FAQ 13.15 which clarifies that revenue replacement dollars have different subrecipient monitoring standards, including an exemption from suspension and debarment checks in 2 CFR 200.214.
2023-019. Suspension and Debarment Not Verified Before Awarding Contracts Governor’s Office of Planning and Budget (Finding Type: Significant Deficiency) Federal Agency: Department of the Treasury Assistance Listing Number and Title: 21.027 Coronavirus State & Local Fiscal Recovery Funds Federal Award Number: N/A Questioned Costs: $0 Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: 2022-022, 2021-022 Upon receiving a Coronavirus State and Local Fiscal Recovery Fund (SLFRF) allocation, the Utah Board of Higher Education (USHE) neither established internal controls to ensure compliance with federal suspension and debarment requirements for awarded contracts, nor did they verify whether contracted parties were suspended or debarred prior to contracting with the parties. The two contracts awarded by USHE out of 44 contracts reviewed statewide did not check for suspension and debarment requirements prior to the award. The Treasury’s Final Rule General provisions and the Interim Final Rule issued May 17, 2021 states that “payments from the…Funds…will be subject to the provisions of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200),” which includes suspension and debarment requirements (see 2 CFR 200.214). Uniform Guidance (2 CFR part 200.303) also requires non-federal entities to “establish and maintain effective internal control…that provides reasonable assurance that the non-federal entity [manages the program] in compliance with…terms and conditions of the federal award.” Given USHE’s inexperience with federal programs, USHE was unaware the suspension and debarment requirements were applicable to its program, and GOPB did not sufficiently communicate applicable federal program requirements. Failure to properly implement controls and review each contracted party for suspension and debarment could result in federally debarred entities receiving grant awards. Recommendations: We recommend GOPB assist agencies, including USHE, to gain an understanding of suspension and debarment requirements and establish effective internal controls to ensure compliance with these requirements. GOPB’s Response: GOPB agrees with this finding. This is a repeat finding from the 2022 single audit because there was insufficient time to implement the previous corrective action plan between the release of the audit and end of fiscal year 2023. In September 2022, GOPB distributed an ARPA Agency Checklist to remind those managing SLFR funds of compliance, monitoring, and reporting requirements, which included the requirement of monitoring for suspension and debarment. This checklist tool was not consistently used previously. A retroactive check was performed and no entities receiving federal funds had been suspended or debarred. Follow-up training on ARPA monitoring was done April 3 and June 7, 2023. GOPB also reviewed Final Rule FAQ 13.15 which clarifies that revenue replacement dollars have different subrecipient monitoring standards, including an exemption from suspension and debarment checks in 2 CFR 200.214.
2023-019. Suspension and Debarment Not Verified Before Awarding Contracts Governor’s Office of Planning and Budget (Finding Type: Significant Deficiency) Federal Agency: Department of the Treasury Assistance Listing Number and Title: 21.027 Coronavirus State & Local Fiscal Recovery Funds Federal Award Number: N/A Questioned Costs: $0 Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: 2022-022, 2021-022 Upon receiving a Coronavirus State and Local Fiscal Recovery Fund (SLFRF) allocation, the Utah Board of Higher Education (USHE) neither established internal controls to ensure compliance with federal suspension and debarment requirements for awarded contracts, nor did they verify whether contracted parties were suspended or debarred prior to contracting with the parties. The two contracts awarded by USHE out of 44 contracts reviewed statewide did not check for suspension and debarment requirements prior to the award. The Treasury’s Final Rule General provisions and the Interim Final Rule issued May 17, 2021 states that “payments from the…Funds…will be subject to the provisions of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200),” which includes suspension and debarment requirements (see 2 CFR 200.214). Uniform Guidance (2 CFR part 200.303) also requires non-federal entities to “establish and maintain effective internal control…that provides reasonable assurance that the non-federal entity [manages the program] in compliance with…terms and conditions of the federal award.” Given USHE’s inexperience with federal programs, USHE was unaware the suspension and debarment requirements were applicable to its program, and GOPB did not sufficiently communicate applicable federal program requirements. Failure to properly implement controls and review each contracted party for suspension and debarment could result in federally debarred entities receiving grant awards. Recommendations: We recommend GOPB assist agencies, including USHE, to gain an understanding of suspension and debarment requirements and establish effective internal controls to ensure compliance with these requirements. GOPB’s Response: GOPB agrees with this finding. This is a repeat finding from the 2022 single audit because there was insufficient time to implement the previous corrective action plan between the release of the audit and end of fiscal year 2023. In September 2022, GOPB distributed an ARPA Agency Checklist to remind those managing SLFR funds of compliance, monitoring, and reporting requirements, which included the requirement of monitoring for suspension and debarment. This checklist tool was not consistently used previously. A retroactive check was performed and no entities receiving federal funds had been suspended or debarred. Follow-up training on ARPA monitoring was done April 3 and June 7, 2023. GOPB also reviewed Final Rule FAQ 13.15 which clarifies that revenue replacement dollars have different subrecipient monitoring standards, including an exemption from suspension and debarment checks in 2 CFR 200.214.
2023-019. Suspension and Debarment Not Verified Before Awarding Contracts Governor’s Office of Planning and Budget (Finding Type: Significant Deficiency) Federal Agency: Department of the Treasury Assistance Listing Number and Title: 21.027 Coronavirus State & Local Fiscal Recovery Funds Federal Award Number: N/A Questioned Costs: $0 Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: 2022-022, 2021-022 Upon receiving a Coronavirus State and Local Fiscal Recovery Fund (SLFRF) allocation, the Utah Board of Higher Education (USHE) neither established internal controls to ensure compliance with federal suspension and debarment requirements for awarded contracts, nor did they verify whether contracted parties were suspended or debarred prior to contracting with the parties. The two contracts awarded by USHE out of 44 contracts reviewed statewide did not check for suspension and debarment requirements prior to the award. The Treasury’s Final Rule General provisions and the Interim Final Rule issued May 17, 2021 states that “payments from the…Funds…will be subject to the provisions of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200),” which includes suspension and debarment requirements (see 2 CFR 200.214). Uniform Guidance (2 CFR part 200.303) also requires non-federal entities to “establish and maintain effective internal control…that provides reasonable assurance that the non-federal entity [manages the program] in compliance with…terms and conditions of the federal award.” Given USHE’s inexperience with federal programs, USHE was unaware the suspension and debarment requirements were applicable to its program, and GOPB did not sufficiently communicate applicable federal program requirements. Failure to properly implement controls and review each contracted party for suspension and debarment could result in federally debarred entities receiving grant awards. Recommendations: We recommend GOPB assist agencies, including USHE, to gain an understanding of suspension and debarment requirements and establish effective internal controls to ensure compliance with these requirements. GOPB’s Response: GOPB agrees with this finding. This is a repeat finding from the 2022 single audit because there was insufficient time to implement the previous corrective action plan between the release of the audit and end of fiscal year 2023. In September 2022, GOPB distributed an ARPA Agency Checklist to remind those managing SLFR funds of compliance, monitoring, and reporting requirements, which included the requirement of monitoring for suspension and debarment. This checklist tool was not consistently used previously. A retroactive check was performed and no entities receiving federal funds had been suspended or debarred. Follow-up training on ARPA monitoring was done April 3 and June 7, 2023. GOPB also reviewed Final Rule FAQ 13.15 which clarifies that revenue replacement dollars have different subrecipient monitoring standards, including an exemption from suspension and debarment checks in 2 CFR 200.214.
2023-019. Suspension and Debarment Not Verified Before Awarding Contracts Governor’s Office of Planning and Budget (Finding Type: Significant Deficiency) Federal Agency: Department of the Treasury Assistance Listing Number and Title: 21.027 Coronavirus State & Local Fiscal Recovery Funds Federal Award Number: N/A Questioned Costs: $0 Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: 2022-022, 2021-022 Upon receiving a Coronavirus State and Local Fiscal Recovery Fund (SLFRF) allocation, the Utah Board of Higher Education (USHE) neither established internal controls to ensure compliance with federal suspension and debarment requirements for awarded contracts, nor did they verify whether contracted parties were suspended or debarred prior to contracting with the parties. The two contracts awarded by USHE out of 44 contracts reviewed statewide did not check for suspension and debarment requirements prior to the award. The Treasury’s Final Rule General provisions and the Interim Final Rule issued May 17, 2021 states that “payments from the…Funds…will be subject to the provisions of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200),” which includes suspension and debarment requirements (see 2 CFR 200.214). Uniform Guidance (2 CFR part 200.303) also requires non-federal entities to “establish and maintain effective internal control…that provides reasonable assurance that the non-federal entity [manages the program] in compliance with…terms and conditions of the federal award.” Given USHE’s inexperience with federal programs, USHE was unaware the suspension and debarment requirements were applicable to its program, and GOPB did not sufficiently communicate applicable federal program requirements. Failure to properly implement controls and review each contracted party for suspension and debarment could result in federally debarred entities receiving grant awards. Recommendations: We recommend GOPB assist agencies, including USHE, to gain an understanding of suspension and debarment requirements and establish effective internal controls to ensure compliance with these requirements. GOPB’s Response: GOPB agrees with this finding. This is a repeat finding from the 2022 single audit because there was insufficient time to implement the previous corrective action plan between the release of the audit and end of fiscal year 2023. In September 2022, GOPB distributed an ARPA Agency Checklist to remind those managing SLFR funds of compliance, monitoring, and reporting requirements, which included the requirement of monitoring for suspension and debarment. This checklist tool was not consistently used previously. A retroactive check was performed and no entities receiving federal funds had been suspended or debarred. Follow-up training on ARPA monitoring was done April 3 and June 7, 2023. GOPB also reviewed Final Rule FAQ 13.15 which clarifies that revenue replacement dollars have different subrecipient monitoring standards, including an exemption from suspension and debarment checks in 2 CFR 200.214.
2023-019. Suspension and Debarment Not Verified Before Awarding Contracts Governor’s Office of Planning and Budget (Finding Type: Significant Deficiency) Federal Agency: Department of the Treasury Assistance Listing Number and Title: 21.027 Coronavirus State & Local Fiscal Recovery Funds Federal Award Number: N/A Questioned Costs: $0 Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: 2022-022, 2021-022 Upon receiving a Coronavirus State and Local Fiscal Recovery Fund (SLFRF) allocation, the Utah Board of Higher Education (USHE) neither established internal controls to ensure compliance with federal suspension and debarment requirements for awarded contracts, nor did they verify whether contracted parties were suspended or debarred prior to contracting with the parties. The two contracts awarded by USHE out of 44 contracts reviewed statewide did not check for suspension and debarment requirements prior to the award. The Treasury’s Final Rule General provisions and the Interim Final Rule issued May 17, 2021 states that “payments from the…Funds…will be subject to the provisions of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200),” which includes suspension and debarment requirements (see 2 CFR 200.214). Uniform Guidance (2 CFR part 200.303) also requires non-federal entities to “establish and maintain effective internal control…that provides reasonable assurance that the non-federal entity [manages the program] in compliance with…terms and conditions of the federal award.” Given USHE’s inexperience with federal programs, USHE was unaware the suspension and debarment requirements were applicable to its program, and GOPB did not sufficiently communicate applicable federal program requirements. Failure to properly implement controls and review each contracted party for suspension and debarment could result in federally debarred entities receiving grant awards. Recommendations: We recommend GOPB assist agencies, including USHE, to gain an understanding of suspension and debarment requirements and establish effective internal controls to ensure compliance with these requirements. GOPB’s Response: GOPB agrees with this finding. This is a repeat finding from the 2022 single audit because there was insufficient time to implement the previous corrective action plan between the release of the audit and end of fiscal year 2023. In September 2022, GOPB distributed an ARPA Agency Checklist to remind those managing SLFR funds of compliance, monitoring, and reporting requirements, which included the requirement of monitoring for suspension and debarment. This checklist tool was not consistently used previously. A retroactive check was performed and no entities receiving federal funds had been suspended or debarred. Follow-up training on ARPA monitoring was done April 3 and June 7, 2023. GOPB also reviewed Final Rule FAQ 13.15 which clarifies that revenue replacement dollars have different subrecipient monitoring standards, including an exemption from suspension and debarment checks in 2 CFR 200.214.
Criteria In accordance with 2 CFR 200.214, non-federal entities are subject to the procurement, debarment and suspension regulations implementing executive orders and 2 CFR part 180. These regulations restrict non-federal entities from entering into covered transactions with certain parties that are deemed debarred, suspended or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Condition and Context: Integration Charter Schools’ internal controls over compliance are not followed despite having a written policy. In accordance with 2 CFR 200 Appendix XI, Part 3-I-2, when an entity enters into a covered transaction, a non-federal entity must verify that the entity, as defined in 2 CFR Section 180.995, is not suspended, or debarred or otherwise excluded from participating in the transaction. Integration Charter Schools has a written policy that states prior to entering into the procurement process, each contractor will be researched to determine that they have not been suspended or debarred. However, Integration Charter Schools did not follow the policy in place. Rather, the Charter School, on a quarterly basis, was verifying entities that received federal awards were not suspended or debarred after the transaction was complete. Effect Due to the verification procedure occurring after the cash disbursement was made the Charter School could have awarded suspended or debarred entities federal awards. Cause: The Charter School did not follow the suspension and debarment policies in place. Recommendation We recommend the Charter School develop a control, with formal written documentation, showing the Charter School has researched the entity prior to the Charter School entering into the covered transaction. This documentation should be reviewed by the proper authority to ensure the entity has been researched prior to entering into the covered transaction. Management’s response Refer to Corrective Action Plan attached.
SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS FINDING NUMBER 2023-005 FEDERAL AGENCY U.S. DEPARTMENT OF THE TREASURY FEDERAL PROGRAM CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS (ALN 21.027) REQUIREMENT PROCUREMENT SUSPENSION & DEBARMENT (I) TYPE OF FINDING SIGNIFICANT DEFICIENCY (SD) / NONCOMPLIANCE (NC) CONDITION In our Procurement Contract Provision Test, we evaluated three contract agreements. We found that the Municipality did not include all contract provisions required for non-federal entity contracts under federal awards for one none of the contract agreements evaluated. CRITERIA 2 CFR section 200.327 references Appendix II to Part 200, which establishes the contract provisions must be included in non-federal entity contracts under federal awards. CAUSE There is lack of knowledge about the contract provisions required to be included in federal awards contracts. Therefore, the Municipality has been awarding contracts without the proper procurement procedure. EFFECT The program is in noncompliance with the Procurement Suspension and Debarment requirements as established in 2 CFR section 200.327. RECOMMENDATION We recommend the program administrators to include in the requisition for contracts a description of the requirements that need to be fulfilled to award a federal contract. Contracts should not be signed, and payments should not be disbursed without the required contract provisions. QUESTIONED COST None PRIOR YEAR FINDING A similar finding was presented in prior year Schedule of Findings and Questioned Costs (2022-007) VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION We concur with the auditor’s finding. We implemented policies and procedures in accordance with Uniform Guidance 2 CFR 200.214. Implementation Date: Fiscal year 2023-2024 Responsible Person: Kristian Rivera Santiago Finance Director
NONCOMPLIANCE WITH PROCUREMENT AND SUSPENSION AND DEBARMENT REQUIREMENTS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS, ASSISTANCE LISTING No. 21.027 AND DISASTER GRANTS-PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS), ASSISTANCE LISTING No. 97.036 Criteria: Per section 13 of Treasury’s Final Rule FAQs and 2 CFR 200.214, cities must comply with the procurement standards set forth in 2 CFR 200.318, through 2 CFR 200.327, when using their SLFRF award funds to procure goods and services to carry out the objectives of their SLFRF award. In addition, 2 CFR 200.214, restricts awards, subawards and contracts with parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The city did not verify that program recipients/participants were not suspended, debarred, or otherwise excluded from participation in the program. Cause: The city does not have procurement policies and procedures in place that allow it to comply with procurement standards outlined in the Uniform Guidance. Effect: Non-compliance with program terms and conditions. Questioned Costs: None Recommendation: Management should develop procedures that will provide reasonable assurance that procurement of goods and services are made in compliance with applicable federal regulations and other procurement requirements specific to a federal award or subaward, and that no subaward, contract, or agreement for purchase of goods or services is made with any suspended or debarred party. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.
NONCOMPLIANCE WITH PROCUREMENT AND SUSPENSION AND DEBARMENT REQUIREMENTS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS, ASSISTANCE LISTING No. 21.027 AND DISASTER GRANTS-PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS), ASSISTANCE LISTING No. 97.036 Criteria: Per section 13 of Treasury’s Final Rule FAQs and 2 CFR 200.214, cities must comply with the procurement standards set forth in 2 CFR 200.318, through 2 CFR 200.327, when using their SLFRF award funds to procure goods and services to carry out the objectives of their SLFRF award. In addition, 2 CFR 200.214, restricts awards, subawards and contracts with parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The city did not verify that program recipients/participants were not suspended, debarred, or otherwise excluded from participation in the program. Cause: The city does not have procurement policies and procedures in place that allow it to comply with procurement standards outlined in the Uniform Guidance. Effect: Non-compliance with program terms and conditions. Questioned Costs: None Recommendation: Management should develop procedures that will provide reasonable assurance that procurement of goods and services are made in compliance with applicable federal regulations and other procurement requirements specific to a federal award or subaward, and that no subaward, contract, or agreement for purchase of goods or services is made with any suspended or debarred party. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.
NONCOMPLIANCE WITH PROCUREMENT AND SUSPENSION AND DEBARMENT REQUIREMENTS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS, ASSISTANCE LISTING No. 21.027 AND DISASTER GRANTS-PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS), ASSISTANCE LISTING No. 97.036 Criteria: Per section 13 of Treasury’s Final Rule FAQs and 2 CFR 200.214, cities must comply with the procurement standards set forth in 2 CFR 200.318, through 2 CFR 200.327, when using their SLFRF award funds to procure goods and services to carry out the objectives of their SLFRF award. In addition, 2 CFR 200.214, restricts awards, subawards and contracts with parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The city did not verify that program recipients/participants were not suspended, debarred, or otherwise excluded from participation in the program. Cause: The city does not have procurement policies and procedures in place that allow it to comply with procurement standards outlined in the Uniform Guidance. Effect: Non-compliance with program terms and conditions. Questioned Costs: None Recommendation: Management should develop procedures that will provide reasonable assurance that procurement of goods and services are made in compliance with applicable federal regulations and other procurement requirements specific to a federal award or subaward, and that no subaward, contract, or agreement for purchase of goods or services is made with any suspended or debarred party. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.
NONCOMPLIANCE WITH PROCUREMENT AND SUSPENSION AND DEBARMENT REQUIREMENTS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS, ASSISTANCE LISTING No. 21.027 AND DISASTER GRANTS-PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS), ASSISTANCE LISTING No. 97.036 Criteria: Per section 13 of Treasury’s Final Rule FAQs and 2 CFR 200.214, cities must comply with the procurement standards set forth in 2 CFR 200.318, through 2 CFR 200.327, when using their SLFRF award funds to procure goods and services to carry out the objectives of their SLFRF award. In addition, 2 CFR 200.214, restricts awards, subawards and contracts with parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The city did not verify that program recipients/participants were not suspended, debarred, or otherwise excluded from participation in the program. Cause: The city does not have procurement policies and procedures in place that allow it to comply with procurement standards outlined in the Uniform Guidance. Effect: Non-compliance with program terms and conditions. Questioned Costs: None Recommendation: Management should develop procedures that will provide reasonable assurance that procurement of goods and services are made in compliance with applicable federal regulations and other procurement requirements specific to a federal award or subaward, and that no subaward, contract, or agreement for purchase of goods or services is made with any suspended or debarred party. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.
NONCOMPLIANCE WITH PROCUREMENT AND SUSPENSION AND DEBARMENT REQUIREMENTS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS, ASSISTANCE LISTING No. 21.027 AND DISASTER GRANTS-PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS), ASSISTANCE LISTING No. 97.036 Criteria: Per section 13 of Treasury’s Final Rule FAQs and 2 CFR 200.214, cities must comply with the procurement standards set forth in 2 CFR 200.318, through 2 CFR 200.327, when using their SLFRF award funds to procure goods and services to carry out the objectives of their SLFRF award. In addition, 2 CFR 200.214, restricts awards, subawards and contracts with parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The city did not verify that program recipients/participants were not suspended, debarred, or otherwise excluded from participation in the program. Cause: The city does not have procurement policies and procedures in place that allow it to comply with procurement standards outlined in the Uniform Guidance. Effect: Non-compliance with program terms and conditions. Questioned Costs: None Recommendation: Management should develop procedures that will provide reasonable assurance that procurement of goods and services are made in compliance with applicable federal regulations and other procurement requirements specific to a federal award or subaward, and that no subaward, contract, or agreement for purchase of goods or services is made with any suspended or debarred party. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.
NONCOMPLIANCE WITH PROCUREMENT AND SUSPENSION AND DEBARMENT REQUIREMENTS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS, ASSISTANCE LISTING No. 21.027 AND DISASTER GRANTS-PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS), ASSISTANCE LISTING No. 97.036 Criteria: Per section 13 of Treasury’s Final Rule FAQs and 2 CFR 200.214, cities must comply with the procurement standards set forth in 2 CFR 200.318, through 2 CFR 200.327, when using their SLFRF award funds to procure goods and services to carry out the objectives of their SLFRF award. In addition, 2 CFR 200.214, restricts awards, subawards and contracts with parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The city did not verify that program recipients/participants were not suspended, debarred, or otherwise excluded from participation in the program. Cause: The city does not have procurement policies and procedures in place that allow it to comply with procurement standards outlined in the Uniform Guidance. Effect: Non-compliance with program terms and conditions. Questioned Costs: None Recommendation: Management should develop procedures that will provide reasonable assurance that procurement of goods and services are made in compliance with applicable federal regulations and other procurement requirements specific to a federal award or subaward, and that no subaward, contract, or agreement for purchase of goods or services is made with any suspended or debarred party. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.
NONCOMPLIANCE WITH PROCUREMENT, SUSPENSION & DEBARMENT REQUIREMENTS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS; AL No. 21.027; GRANT No AM-23-0262, YEAR ENDED JUNE 30, 2023 Criteria: Per section 13 of Treasury’s Final Rule FAQs and 2 CFR 200.214, counties must comply with the procurement standards set forth in 2 CFR 200.318, through 2 CFR 200.327, when using their SLFRF award funds to procure goods and services to carry out the objectives of their SLFRF award. In addition, 2 CFR 200.214, prohibits recipients from using SLFRF funds to enter into subawards and contracts with parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs. Condition: The county did not verify that program recipients/participants were not suspended, debarred, or otherwise excluded from participation in the program. Cause: The county does not have procurement policies and procedures in place that allow it to comply with procurement standards outlined in the Uniform Guidance. Effect: Non-compliance with program terms and conditions. Questioned Costs: None Recommendation: Management should develop procedures that will provide reasonable assurance that procurement of goods and services are made in compliance with applicable federal regulations and other procurement requirements specific to a federal award or subaward, and that no subaward, contract, or agreement for purchase of goods or services is made with any suspended or debarred party. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.
Procurement, Suspension, and Debarment Finding Type: Material Weakness in Internal Control over Compliance. Programs: United States Environmental Protection Agency Capitalization Grants for Clean Water State Revolving Funds (ALN #66.458) and Capitalization Grants for Drinking Water State Revolving Funds (ALN #66.468) Criteria: The Uniform Guidance, §200.214, requires that a recipient of federal awards are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict 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. Condition/Finding: During our audit procedures over the City’s debarment and suspension procedures, we noted that the City relies on their engineers to make sure contractors are not debarred, suspended, or otherwise excluded from Federal assistance programs or activities. The City does not have a process in place to verify the engineers are in fact monitoring the contractors on the project. Cause: The City does not have the proper internal controls in place to ensure that all contractors are not debarred, suspended, or otherwise excluded from Federal assistance programs or activities. Effect: The City did not follow requirements to check whether a vendor is suspended or debarred. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the City verify that any vendors or contractors selected are verified as neither suspended or debarred per the SAM.gov website prior to awarding the bid, and, that the City retain documentation of their verification in the bid file.
Procurement, Suspension, and Debarment Finding Type: Material Weakness in Internal Control over Compliance. Programs: United States Environmental Protection Agency Capitalization Grants for Clean Water State Revolving Funds (ALN #66.458) and Capitalization Grants for Drinking Water State Revolving Funds (ALN #66.468) Criteria: The Uniform Guidance, §200.214, requires that a recipient of federal awards are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict 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. Condition/Finding: During our audit procedures over the City’s debarment and suspension procedures, we noted that the City relies on their engineers to make sure contractors are not debarred, suspended, or otherwise excluded from Federal assistance programs or activities. The City does not have a process in place to verify the engineers are in fact monitoring the contractors on the project. Cause: The City does not have the proper internal controls in place to ensure that all contractors are not debarred, suspended, or otherwise excluded from Federal assistance programs or activities. Effect: The City did not follow requirements to check whether a vendor is suspended or debarred. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the City verify that any vendors or contractors selected are verified as neither suspended or debarred per the SAM.gov website prior to awarding the bid, and, that the City retain documentation of their verification in the bid file.
CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS, ASSISTANCE LISTING No. 21.027, DIRECT ALLOCATION, GRANT No.’s AC-22-0014, AM-22-0013 AND AM-22-0096. NONCOMPLIANCE WITH PROCUREMENT AND SUSPENSION AND DEBARMENT REQUIREMENTS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS; AL No. 21.027, YEAR ENDED JUNE 30, 2023 Criteria: Per section 13 of Treasury’s Final Rule FAQs and 2 CFR 200.214, cities must comply with the procurement standards set forth in 2 CFR 200.318, through 2 CFR 200.327, when using their SLFRF award funds to procure goods and services to carry out the objectives of their SLFRF award. In addition, 2 CFR 200.214, prohibits recipients from using SLFRF funds to enter into subawards and contracts with parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs. Condition: The city did not verify that program recipients/participants were not suspended, debarred, or otherwise excluded from participation in the program. Cause: The city does not have procurement policies and procedures in place that allow it to comply with procurement standards outlined in the Uniform Guidance. Effect: Non-compliance with program terms and conditions. Questioned Costs: None Recommendation: Management should develop procedures that will provide reasonable assurance that procurement of goods and services are made in compliance with applicable federal regulations and other procurement requirements specific to a federal award or subaward, and that no subaward, contract, or agreement for purchase of goods or services is made with any suspended or debarred party. Views of responsible officials and planned corrective action. The government agrees with this finding and will adhere to the attached corrective action plan.
CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS, ASSISTANCE LISTING No. 21.027, DIRECT ALLOCATION, GRANT No.’s AC-22-0014, AM-22-0013 AND AM-22-0096. NONCOMPLIANCE WITH PROCUREMENT AND SUSPENSION AND DEBARMENT REQUIREMENTS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS; AL No. 21.027, YEAR ENDED JUNE 30, 2023 Criteria: Per section 13 of Treasury’s Final Rule FAQs and 2 CFR 200.214, cities must comply with the procurement standards set forth in 2 CFR 200.318, through 2 CFR 200.327, when using their SLFRF award funds to procure goods and services to carry out the objectives of their SLFRF award. In addition, 2 CFR 200.214, prohibits recipients from using SLFRF funds to enter into subawards and contracts with parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs. Condition: The city did not verify that program recipients/participants were not suspended, debarred, or otherwise excluded from participation in the program. Cause: The city does not have procurement policies and procedures in place that allow it to comply with procurement standards outlined in the Uniform Guidance. Effect: Non-compliance with program terms and conditions. Questioned Costs: None Recommendation: Management should develop procedures that will provide reasonable assurance that procurement of goods and services are made in compliance with applicable federal regulations and other procurement requirements specific to a federal award or subaward, and that no subaward, contract, or agreement for purchase of goods or services is made with any suspended or debarred party. Views of responsible officials and planned corrective action. The government agrees with this finding and will adhere to the attached corrective action plan.
CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS, ASSISTANCE LISTING No. 21.027, DIRECT ALLOCATION, GRANT No.’s AC-22-0014, AM-22-0013 AND AM-22-0096. NONCOMPLIANCE WITH PROCUREMENT AND SUSPENSION AND DEBARMENT REQUIREMENTS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS; AL No. 21.027, YEAR ENDED JUNE 30, 2023 Criteria: Per section 13 of Treasury’s Final Rule FAQs and 2 CFR 200.214, cities must comply with the procurement standards set forth in 2 CFR 200.318, through 2 CFR 200.327, when using their SLFRF award funds to procure goods and services to carry out the objectives of their SLFRF award. In addition, 2 CFR 200.214, prohibits recipients from using SLFRF funds to enter into subawards and contracts with parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs. Condition: The city did not verify that program recipients/participants were not suspended, debarred, or otherwise excluded from participation in the program. Cause: The city does not have procurement policies and procedures in place that allow it to comply with procurement standards outlined in the Uniform Guidance. Effect: Non-compliance with program terms and conditions. Questioned Costs: None Recommendation: Management should develop procedures that will provide reasonable assurance that procurement of goods and services are made in compliance with applicable federal regulations and other procurement requirements specific to a federal award or subaward, and that no subaward, contract, or agreement for purchase of goods or services is made with any suspended or debarred party. Views of responsible officials and planned corrective action. The government agrees with this finding and will adhere to the attached corrective action plan.
CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS, ASSISTANCE LISTING No. 21.027, DIRECT ALLOCATION, GRANT No.’s AC-22-0014, AM-22-0013 AND AM-22-0096. NONCOMPLIANCE WITH PROCUREMENT AND SUSPENSION AND DEBARMENT REQUIREMENTS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS; AL No. 21.027, YEAR ENDED JUNE 30, 2023 Criteria: Per section 13 of Treasury’s Final Rule FAQs and 2 CFR 200.214, cities must comply with the procurement standards set forth in 2 CFR 200.318, through 2 CFR 200.327, when using their SLFRF award funds to procure goods and services to carry out the objectives of their SLFRF award. In addition, 2 CFR 200.214, prohibits recipients from using SLFRF funds to enter into subawards and contracts with parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs. Condition: The city did not verify that program recipients/participants were not suspended, debarred, or otherwise excluded from participation in the program. Cause: The city does not have procurement policies and procedures in place that allow it to comply with procurement standards outlined in the Uniform Guidance. Effect: Non-compliance with program terms and conditions. Questioned Costs: None Recommendation: Management should develop procedures that will provide reasonable assurance that procurement of goods and services are made in compliance with applicable federal regulations and other procurement requirements specific to a federal award or subaward, and that no subaward, contract, or agreement for purchase of goods or services is made with any suspended or debarred party. Views of responsible officials and planned corrective action. The government agrees with this finding and will adhere to the attached corrective action plan.
Finding # 2023-002 Program: AL 21.027 – COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Suspension & Debarment Grant Number & Year: SLFRP4397, March 3, 2021, through December 31, 2024 Federal Grantor Agency: U.S. Department of the Treasury Criteria: Title 2 of the U.S. Code of Federal Regulations (CFR) § 200.303 (January 1, 2023) states the following, in relevant part: The non-Federal entity must: (a) 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 be in compliance 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). 2 CFR § 200.214 (January 1, 2023) states the following: Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict 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. The U.S. Department of the Treasury adopted the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards in 2 CFR § 1000.10 (January 1, 2023), which states the following: Except for the deviations set forth elsewhere in this Part, the Department of the Treasury adopts the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, set forth at 2 CFR part 200. 2 CFR § 180.300 (January 1, 2023) requires non-Federal entities to verify that an entity is not excluded or disqualified prior to entering into a covered transaction by “(a) Checking SAM Exclusions; or (b) Collecting a certification from that . . . [entity]; or (c) Adding a clause or condition to the covered transaction with that . . . [entity].” A good internal control plan requires the County to have proper procedures in place to verify that contractors paid with Federal funds are not suspended, debarred, or otherwise excluded from or ineligible for participation in Federal programs or activities. Condition: Dawes County could not provide documentation to support that the County implemented effective internal controls to ensure that suspension and debarment requirements were followed and adequately documented. We noted the County used Coronavirus State and Local Fiscal Recovery Funds to pay eight vendors over $25,000 each, totaling $962,435, during the fiscal year ended June 30, 2023. The County failed to ensure that these vendors were not excluded or disqualified prior to entering into these covered transactions. We reviewed SAM.gov, and noted that none of these vendors were suspended, debarred, or otherwise excluded from participation in Federal programs or activities as of the date testing was performed. Repeat Finding: No Questioned Costs: None Statistical Sample: No Context: The following table provides details of the covered transactions noted: Cause: Lack of procedures and knowledge regarding suspension and debarment requirements. Effect: Without adequate procedures to ensure contractors are not suspended, debarred, or otherwise excluded from or ineligible for participation in Federal programs or activities, there is an increased risk for the misuse of Federal funds and noncompliance with Federal regulations, leading to possible Federal sanctions. Recommendation: We recommend the County implement procedures to ensure, prior to entering into a covered transaction, that a contractor is not suspended, debarred, or otherwise excluded from or ineligible for participation in Federal programs or activities, and those procedures are adequately documented. View of Officials: Dawes County Board of Commissioners will work closely with our new ARPA Funding Coordinator to ensure we do the background check for contractors receiving federal funds. Dawes County will also use our newly contracted firm to check on regulations for the program with SAM.gov and other resources provided by the federal government. Mark DeDiana with Core CPAs out of Hastings, Nebraska will be our new contact to ensure federal guidelines are achieved.
Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agency: Massachusetts Department of Revenue Pass-Through Number: ARPACNTYSH056 Award Period: July 1, 2022 – June 30, 2023 Type of Finding: Significant Deficiency in Internal Control Over Compliance Compliance Requirement: Suspension and Debarment Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Title 2 Part 200.214 states that nonfederal entities are subject to the nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. These regulations restrict 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. Nonfederal entities must verify that contracts with certain parties are not debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition and Context: For all vendors in our audit sample, the Town did not document verification that the vendor was not suspended or debarred from participation in Federal assistance programs or activities. The vendors in our audit sample were not suspended or debarred. Questioned Costs: None. Cause: Procedures were not in place to document the verification that all vendors were not suspended or debarred from participation in Federal assistance programs or activities. Effect: While this did not occur in the instances identified in this finding, lack of verification of vendors’ debarment or suspension status could cause federal grant funds to be expended with vendors that are excluded from participation in Federal assistance programs or activities. Repeat Finding: No. Recommendation: We recommend to annually (at a minimum) document the verification that all vendors are not suspended or debarred from participation in Federal assistance programs or activities. Views of Responsible Officials: Management agrees with the finding.