2024-001: Suspension and Debarment Program: Child and Adult Care Food Program (ALN 10.558) Federal agency: U.S. Department of Agriculture Pass-through entity name and identifying number: Maryland State Department of Education (347105) District of Columbia OSSE (N/A) Virginia Department of Health (4108) Federal Award Year: Year ended June 30, 2024 Program: Commodity Supplemental Food Program (ALN 10.565)(Food Distribution Cluster) Federal agency: U.S. Department of Agriculture Pass-through entity name and identifying number: District of Columbia Department of Health (CHA2022-000027) Montgomery County Department of Health and Human Services (1087608) Maryland Department of Aging (N/A) Federal Award Year: Year ended June 30, 2024 Program: Emergency Food Assistance Program (Administrative Costs) (ALN 10.568)(Food Distribution Cluster) Federal agency: U.S. Department of Agriculture Pass-through entity name and identifying number: Virginia Department of Agriculture and Consumer Services (VDACS) (67-150) District of Columbia OSSE Wellness and Nutrition Services Division (CW102461) District of Columbia Department of Health (N/A) Maryland Department of Human Resources Family Investment Administration (FIA/FNS 23-012-FY23 and FIA/FNS 23-012-FY 24) Federal Award Year: Year ended June 30, 2024 Program: Emergency Food Assistance Program (Commodities) (ALN 10.569)(Food Distribution Cluster) Pass-through entity name and identifying number: District of Columbia OSSE Wellness and Nutrition Services Division (CW102461) District of Columbia Department of Health (N/A) Virginia Department of Agriculture and Consumer Services (VDACS) (67-150) Maryland Department of Human Resources Family Investment Administration (FIA/FNS 23-012) Federal agency: U.S. Department of Agriculture Federal Award Year: Year ended June 30, 2024 Program: COVID-19: Coronavirus State and Local Recovery Funds (ALN 21.027) Federal agency: U.S. Department of the Treasury Pass-through entity name and identifying number: Federation of Virginia Food Banks (N/A) Federation of Virginia Food Banks – Farms to Families Box Program (N/A) Fairfax County (#SR-003432J) D.C. Department of Health (CHA2022-000020-1) Office of the Deputy Mayor for Planning and Economic Development (PO690289-FY23-DMPED) City of Falls Church (N/A) VA Department of Agricultural Services (2022-4A1-001) Prince William County (N/A) Federal Award Year: Year ended June 30, 2024 Type of finding: Material Weakness in Internal Control over Compliance Criteria: As stated in 2 CFR 200.214 Suspension and debarment, recipients and subrecipients are subject to the nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, as well as 2 CFR part 180. The regulations in 2 CFR part 180 restrict making Federal awards, subawards and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. As noted in 2 CFR 180.155, this verification may be accomplished by checking the System for Award Management (SAM.gov) exclusions to determine whether a person is excluded. 2 CFR 180.220(b)(1) indicates that contracts for goods or services where the amount is expected to equal or exceed $25,000 are covered transactions for the suspension and debarment requirement. Condition: We noted that, although CAFB has a written process for checking suspension and debarment, CAFB did not have documentation of a suspension and debarment check on procurements greater than $25,000 that we selected for testing in three major programs. Cause: The review process related to suspension and debarment did not occur as intended. Effect: Although not found in our testing, procurements could have been made to suspended or debarred parties. Context: Applies to controls over ensuring vendors are properly vetted and are not suspended or debarred. Questioned costs: None Repeat finding: No Recommendation: We recommend that the organization ensure the written procedures around suspension and debarment are followed. Views of responsible officials: CAFB has reviewed and agrees with the finding and the recommendation.
2024-001: Suspension and Debarment Program: Child and Adult Care Food Program (ALN 10.558) Federal agency: U.S. Department of Agriculture Pass-through entity name and identifying number: Maryland State Department of Education (347105) District of Columbia OSSE (N/A) Virginia Department of Health (4108) Federal Award Year: Year ended June 30, 2024 Program: Commodity Supplemental Food Program (ALN 10.565)(Food Distribution Cluster) Federal agency: U.S. Department of Agriculture Pass-through entity name and identifying number: District of Columbia Department of Health (CHA2022-000027) Montgomery County Department of Health and Human Services (1087608) Maryland Department of Aging (N/A) Federal Award Year: Year ended June 30, 2024 Program: Emergency Food Assistance Program (Administrative Costs) (ALN 10.568)(Food Distribution Cluster) Federal agency: U.S. Department of Agriculture Pass-through entity name and identifying number: Virginia Department of Agriculture and Consumer Services (VDACS) (67-150) District of Columbia OSSE Wellness and Nutrition Services Division (CW102461) District of Columbia Department of Health (N/A) Maryland Department of Human Resources Family Investment Administration (FIA/FNS 23-012-FY23 and FIA/FNS 23-012-FY 24) Federal Award Year: Year ended June 30, 2024 Program: Emergency Food Assistance Program (Commodities) (ALN 10.569)(Food Distribution Cluster) Pass-through entity name and identifying number: District of Columbia OSSE Wellness and Nutrition Services Division (CW102461) District of Columbia Department of Health (N/A) Virginia Department of Agriculture and Consumer Services (VDACS) (67-150) Maryland Department of Human Resources Family Investment Administration (FIA/FNS 23-012) Federal agency: U.S. Department of Agriculture Federal Award Year: Year ended June 30, 2024 Program: COVID-19: Coronavirus State and Local Recovery Funds (ALN 21.027) Federal agency: U.S. Department of the Treasury Pass-through entity name and identifying number: Federation of Virginia Food Banks (N/A) Federation of Virginia Food Banks – Farms to Families Box Program (N/A) Fairfax County (#SR-003432J) D.C. Department of Health (CHA2022-000020-1) Office of the Deputy Mayor for Planning and Economic Development (PO690289-FY23-DMPED) City of Falls Church (N/A) VA Department of Agricultural Services (2022-4A1-001) Prince William County (N/A) Federal Award Year: Year ended June 30, 2024 Type of finding: Material Weakness in Internal Control over Compliance Criteria: As stated in 2 CFR 200.214 Suspension and debarment, recipients and subrecipients are subject to the nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, as well as 2 CFR part 180. The regulations in 2 CFR part 180 restrict making Federal awards, subawards and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. As noted in 2 CFR 180.155, this verification may be accomplished by checking the System for Award Management (SAM.gov) exclusions to determine whether a person is excluded. 2 CFR 180.220(b)(1) indicates that contracts for goods or services where the amount is expected to equal or exceed $25,000 are covered transactions for the suspension and debarment requirement. Condition: We noted that, although CAFB has a written process for checking suspension and debarment, CAFB did not have documentation of a suspension and debarment check on procurements greater than $25,000 that we selected for testing in three major programs. Cause: The review process related to suspension and debarment did not occur as intended. Effect: Although not found in our testing, procurements could have been made to suspended or debarred parties. Context: Applies to controls over ensuring vendors are properly vetted and are not suspended or debarred. Questioned costs: None Repeat finding: No Recommendation: We recommend that the organization ensure the written procedures around suspension and debarment are followed. Views of responsible officials: CAFB has reviewed and agrees with the finding and the recommendation.
2024-001: Suspension and Debarment Program: Child and Adult Care Food Program (ALN 10.558) Federal agency: U.S. Department of Agriculture Pass-through entity name and identifying number: Maryland State Department of Education (347105) District of Columbia OSSE (N/A) Virginia Department of Health (4108) Federal Award Year: Year ended June 30, 2024 Program: Commodity Supplemental Food Program (ALN 10.565)(Food Distribution Cluster) Federal agency: U.S. Department of Agriculture Pass-through entity name and identifying number: District of Columbia Department of Health (CHA2022-000027) Montgomery County Department of Health and Human Services (1087608) Maryland Department of Aging (N/A) Federal Award Year: Year ended June 30, 2024 Program: Emergency Food Assistance Program (Administrative Costs) (ALN 10.568)(Food Distribution Cluster) Federal agency: U.S. Department of Agriculture Pass-through entity name and identifying number: Virginia Department of Agriculture and Consumer Services (VDACS) (67-150) District of Columbia OSSE Wellness and Nutrition Services Division (CW102461) District of Columbia Department of Health (N/A) Maryland Department of Human Resources Family Investment Administration (FIA/FNS 23-012-FY23 and FIA/FNS 23-012-FY 24) Federal Award Year: Year ended June 30, 2024 Program: Emergency Food Assistance Program (Commodities) (ALN 10.569)(Food Distribution Cluster) Pass-through entity name and identifying number: District of Columbia OSSE Wellness and Nutrition Services Division (CW102461) District of Columbia Department of Health (N/A) Virginia Department of Agriculture and Consumer Services (VDACS) (67-150) Maryland Department of Human Resources Family Investment Administration (FIA/FNS 23-012) Federal agency: U.S. Department of Agriculture Federal Award Year: Year ended June 30, 2024 Program: COVID-19: Coronavirus State and Local Recovery Funds (ALN 21.027) Federal agency: U.S. Department of the Treasury Pass-through entity name and identifying number: Federation of Virginia Food Banks (N/A) Federation of Virginia Food Banks – Farms to Families Box Program (N/A) Fairfax County (#SR-003432J) D.C. Department of Health (CHA2022-000020-1) Office of the Deputy Mayor for Planning and Economic Development (PO690289-FY23-DMPED) City of Falls Church (N/A) VA Department of Agricultural Services (2022-4A1-001) Prince William County (N/A) Federal Award Year: Year ended June 30, 2024 Type of finding: Material Weakness in Internal Control over Compliance Criteria: As stated in 2 CFR 200.214 Suspension and debarment, recipients and subrecipients are subject to the nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, as well as 2 CFR part 180. The regulations in 2 CFR part 180 restrict making Federal awards, subawards and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. As noted in 2 CFR 180.155, this verification may be accomplished by checking the System for Award Management (SAM.gov) exclusions to determine whether a person is excluded. 2 CFR 180.220(b)(1) indicates that contracts for goods or services where the amount is expected to equal or exceed $25,000 are covered transactions for the suspension and debarment requirement. Condition: We noted that, although CAFB has a written process for checking suspension and debarment, CAFB did not have documentation of a suspension and debarment check on procurements greater than $25,000 that we selected for testing in three major programs. Cause: The review process related to suspension and debarment did not occur as intended. Effect: Although not found in our testing, procurements could have been made to suspended or debarred parties. Context: Applies to controls over ensuring vendors are properly vetted and are not suspended or debarred. Questioned costs: None Repeat finding: No Recommendation: We recommend that the organization ensure the written procedures around suspension and debarment are followed. Views of responsible officials: CAFB has reviewed and agrees with the finding and the recommendation.
Assistance Listing Number #21.027 - Coronavirus State and Local Fiscal Recovery Funds. Type of Finding: Significant deficiency in internal control over major federal programs. Criteria: The Uniform GuidanCriteria: The Uniform Guidance at 2 CFR 200.214, 2 CFR Part 180, and Treasury’s implementing regulations at 31 CFR Part 19, prohibit non-federal entities from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Covered transactions include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. 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, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Condition: We noted that BRAG does not have a process to check for suspension and debarment. Cause: BRAG staff are not familiar with federal suspension and debarment requirements. Effect or Potential Effect: BRAG has a significant deficiency in internal control with respect to its procurement policies and procedures, which could result in significant noncompliance or questioned costs in the future. Recommendation: BRAG management should ensure that procurement policies and procedures regarding the expenditure of federal funds are updated to address suspension and debarment and that these policies and procedures are being following by all BRAG personnel. In addition, we recommend that BRAG management provide training related to procurement policies and procedures to all BRAG personnel with the ability to enter into a contract.
Assistance Listing Number #21.027 - Coronavirus State and Local Fiscal Recovery Funds. Type of Finding: Significant deficiency in internal control over major federal programs. Criteria: The Uniform GuidanCriteria: The Uniform Guidance at 2 CFR 200.214, 2 CFR Part 180, and Treasury’s implementing regulations at 31 CFR Part 19, prohibit non-federal entities from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Covered transactions include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. 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, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Condition: We noted that BRAG does not have a process to check for suspension and debarment. Cause: BRAG staff are not familiar with federal suspension and debarment requirements. Effect or Potential Effect: BRAG has a significant deficiency in internal control with respect to its procurement policies and procedures, which could result in significant noncompliance or questioned costs in the future. Recommendation: BRAG management should ensure that procurement policies and procedures regarding the expenditure of federal funds are updated to address suspension and debarment and that these policies and procedures are being following by all BRAG personnel. In addition, we recommend that BRAG management provide training related to procurement policies and procedures to all BRAG personnel with the ability to enter into a contract.
Criteria: 2 CFR 200.319 states that all procurement transactions under the Federal award must be conducted in a manner that provides full and open competition and is consistent with Federal procurement standards. 2 CFR 200.214 states in part that recipients and subrecipients are subject to the nonprocurement debarment and suspension regulations. In addition, 2 CFR 200.303 in part states that a recipient of a Federal award must establish, document, and maintain effective internal control over the Federal award. Condition: We have selected and tested three of the largest vendors from the Child Nutrition Cluster for compliance with procurement and suspension and debarment. We identified that one vendor was not properly procured, in accordance with 2 CFR 200.319–2 CFR 200.324. As a result, the District incurred questioned costs in the amount of $31,401.63, which was in excess of $25,000 Federal requirement, based on 2 CFR 200.516. Also, the District did not perform procedures to verify suspension and debarment on the same vendor. Cause: District’s internal controls over procurement in the Child Nutrition Cluster were properly designed but not operating effectively to verify that all vendors are properly procured and verified for suspension and debarment. The District did not properly procure one vendor within the Child Nutrition Cluster that incurred questioned costs in excess of the $25,000 threshold, based on 2 CFR 200.516. Effect: The District did not properly procure one vendor within the Child Nutrition Cluster that incurred questioned costs in excess of the $25,000 threshold, based on 2 CFR 200.516, and, as a result, revealed a significant deficiency in internal controls over procurement in the Child Nutrition Cluster. Repeat Finding: No. Recommendation: We recommend that the District re-evaluate the procurement processes in the Child Nutrition Services program and re-evaluate the design of internal controls over procurement and suspension and debarment to be in compliance with the Federal requirements and the District’s procurement policy.
2024-007 – Procurement, Suspension and Debarment Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Procurement, Suspension and Debarment). Program. COVID-19 - Coronavirus State and Local Fiscal Recovery Funds; U.S. Department of Treasury; Assistance Listing Number 21.027, All Award Numbers. Criteria. 2 CFR Section 200.214 requires non-federal entities to follow suspension and debarment regulations outlined in 2 CFR part 180. When a nonfederal entity enters into a covered transaction with an entity at a lower tier, the nonfederal 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. Condition. During our testing of disbursements, it was noted that the College did not follow their procurement policy for purchases over the micro purchase threshold and there is no procedure in place to determine whether vendors are suspended or debarred. Cause. The College did not have a procedure in place to require documentation be maintained that the search for suspension and department associated with procurement transactions in excess of the $25,000 threshold had been performed prior to procurement. Effect. Certain vendors could be used that are considered suspended or debarred by the federal government resulting in noncompliance. Questioned Costs. No costs are required to be questioned as a result of this finding, inasmuch as none of the vendors involved were actually suspended or debarred. Recommendation. We recommend that the College implement a policy over suspension and debarment review to ensure they are maintaining compliance and controls over verifying or contracting with vendors that are allowable, and to follow their procurement policy when entering into purchases greater than the micro purchase threshold. View of Responsible Officials. Management agrees with this finding and has prepared a Corrective Action Plan.
2024-007 – Procurement, Suspension and Debarment Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Procurement, Suspension and Debarment). Program. COVID-19 - Coronavirus State and Local Fiscal Recovery Funds; U.S. Department of Treasury; Assistance Listing Number 21.027, All Award Numbers. Criteria. 2 CFR Section 200.214 requires non-federal entities to follow suspension and debarment regulations outlined in 2 CFR part 180. When a nonfederal entity enters into a covered transaction with an entity at a lower tier, the nonfederal 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. Condition. During our testing of disbursements, it was noted that the College did not follow their procurement policy for purchases over the micro purchase threshold and there is no procedure in place to determine whether vendors are suspended or debarred. Cause. The College did not have a procedure in place to require documentation be maintained that the search for suspension and department associated with procurement transactions in excess of the $25,000 threshold had been performed prior to procurement. Effect. Certain vendors could be used that are considered suspended or debarred by the federal government resulting in noncompliance. Questioned Costs. No costs are required to be questioned as a result of this finding, inasmuch as none of the vendors involved were actually suspended or debarred. Recommendation. We recommend that the College implement a policy over suspension and debarment review to ensure they are maintaining compliance and controls over verifying or contracting with vendors that are allowable, and to follow their procurement policy when entering into purchases greater than the micro purchase threshold. View of Responsible Officials. Management agrees with this finding and has prepared a Corrective Action Plan.
2024-007 – Procurement, Suspension and Debarment Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Procurement, Suspension and Debarment). Program. COVID-19 - Coronavirus State and Local Fiscal Recovery Funds; U.S. Department of Treasury; Assistance Listing Number 21.027, All Award Numbers. Criteria. 2 CFR Section 200.214 requires non-federal entities to follow suspension and debarment regulations outlined in 2 CFR part 180. When a nonfederal entity enters into a covered transaction with an entity at a lower tier, the nonfederal 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. Condition. During our testing of disbursements, it was noted that the College did not follow their procurement policy for purchases over the micro purchase threshold and there is no procedure in place to determine whether vendors are suspended or debarred. Cause. The College did not have a procedure in place to require documentation be maintained that the search for suspension and department associated with procurement transactions in excess of the $25,000 threshold had been performed prior to procurement. Effect. Certain vendors could be used that are considered suspended or debarred by the federal government resulting in noncompliance. Questioned Costs. No costs are required to be questioned as a result of this finding, inasmuch as none of the vendors involved were actually suspended or debarred. Recommendation. We recommend that the College implement a policy over suspension and debarment review to ensure they are maintaining compliance and controls over verifying or contracting with vendors that are allowable, and to follow their procurement policy when entering into purchases greater than the micro purchase threshold. View of Responsible Officials. Management agrees with this finding and has prepared a Corrective Action Plan.
2024-005 Suspension and Debarment Federal Agency: U.S. Department of Education Federal Program Names: Special Education Cluster (IDEA) Assistance Listing Numbers: 84.027, 84.173 Federal Award Year: 2023-2024 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2024-152114-DPI-FLOW-341, 2024-152114-DPI-PRESCH-347 Type of Finding Significant Deficiency in internal control over compliance Criteria or Specific Requirement 2 CFR Section 200.214 requires non-federal entities to follow suspension and debarment regulations outlined in 2 CFR part 180. When a nonfederal entity enters into a covered transaction with an entity at a lower tier, the nonfederal 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. Condition The District could not provide proof of verification of the suspension and debarment status of vendors before entering into services with them. Questioned Costs None. Context The District did not document their review 1 of 1 vendors tested in our sample to document they were not suspended or debarred when initiating covered transactions in the current year. Cause The District does not have a policy or procedure in place to document if a vendor is debarred or suspended. Effect The District could contract with a vendor that has been suspended or debarred from receiving federal funds. Repeat Finding – No Section III – Federal Award Findings and Questioned Costs (Continued) 2024-005 (Continued) Recommendation We recommend the District establish procedures that are in accordance with Uniform Guidance to document their verification that the vendor is not suspended or debarred at the beginning of the year or before entering into a contract. Views of Responsible Officials There is no disagreement with this finding.
2024-005 Suspension and Debarment Federal Agency: U.S. Department of Education Federal Program Names: Special Education Cluster (IDEA) Assistance Listing Numbers: 84.027, 84.173 Federal Award Year: 2023-2024 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2024-152114-DPI-FLOW-341, 2024-152114-DPI-PRESCH-347 Type of Finding Significant Deficiency in internal control over compliance Criteria or Specific Requirement 2 CFR Section 200.214 requires non-federal entities to follow suspension and debarment regulations outlined in 2 CFR part 180. When a nonfederal entity enters into a covered transaction with an entity at a lower tier, the nonfederal 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. Condition The District could not provide proof of verification of the suspension and debarment status of vendors before entering into services with them. Questioned Costs None. Context The District did not document their review 1 of 1 vendors tested in our sample to document they were not suspended or debarred when initiating covered transactions in the current year. Cause The District does not have a policy or procedure in place to document if a vendor is debarred or suspended. Effect The District could contract with a vendor that has been suspended or debarred from receiving federal funds. Repeat Finding – No Section III – Federal Award Findings and Questioned Costs (Continued) 2024-005 (Continued) Recommendation We recommend the District establish procedures that are in accordance with Uniform Guidance to document their verification that the vendor is not suspended or debarred at the beginning of the year or before entering into a contract. Views of Responsible Officials There is no disagreement with this finding.
Criteria: Per 2 CFR 200.214, when an entity enters into a covered transaction using federal awards with a vendor, the entity must verify that the vendor is not debarred, suspended, or otherwise excluded from receiving or participating in Federal award. The entity can do this by: (a) Checking SAM.gov Exclusions; or (b) Collecting a certification from that entity; or (c) Adding a clause or condition to the covered transaction Condition: C/CAG was unable to provide proof that it performed a suspension and debarment check on one of two vendors tested. C/CAG did not have evidence of a SAM.gov check on the vendor, or a timely certification from that vendor, or a clause or condition in the contract with that vendor asserting they were not suspended or debarred. Cause: The vendor had been selected for an earlier similar non-Federally-funded project, and the new amended contract did not include the suspension/debarment clause as required by C/CAG’s policy. Effect: One vendor of two tested vendors did not have sufficient evidence that they were not debarred or suspended from participating in Federal award activities.
2024-001 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, 2023 – June 30, 2024 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 three 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: Yes (Finding 2023-001). 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.
Finding 2024-003: Procurement, Suspension, and Debarment Grantor: National Institute of Health Program: Research and Development Assistance Listing #: 93.395, 93.866 Title: Cancer Treatment Research, Aging Research Award Year: 3/1/2019-11/30/2023, 2/15/2021-1/31/2026 Award #: 3UM1CA18670405S1, 5R01AG07094105 Criteria: -2 CFR 200, Subpart D which require institutions to (1) maintain and use documented procedures for procurement transactions under a federal award or subaward, including for acquisition of property or services; (2) maintain records sufficient to detail the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price. -2 CFR 200.214 which restricts making federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in federal awards. Condition: -For 2 of 25 procurements sampled, the University documented both supplier justification and the purchase order after receipt of an invoice from the vendor. -For 1 of 25 procurements sampled, the University did not maintain evidence of their price/cost analysis as requires when the procurement exceeds the simplified acquisition threshold of $250,000. -For 1 of 25 samples selected for suspension and debarment, the University performed the suspension/debarment screen after the date and payment of the vendor invoice. Cause: For vendors that existed in the legacy accounting system, the University has not consistently documented vendor screening results. Additionally, procurement decisions/conclusions were not consistently documented prior to executing transactions with vendors. Effect: There is a risk that the University could enter into transactions with vendors that are suspended/debarred. Separately, failure to document procurement decisions in a timely manner could impact the University's ability to demonstrate compliance with federal regulations and the University's procurement policies. Questioned Costs: There are no questioned costs as the vendor selected was not suspended or debarred and procurement transactions were deemed allowable. Recommendation: Management should enhance its existing processes to ensure all decisions and conclusions supporting procurements are made in a timely manner and completely documented in the procurement files prior to entering into transactions with vendors. The University should also ensure that all required suspension and debarment checks are performed, and documentation is maintained in advance of transacting with vendors. Management's View and Corrective Action Plan: Please refer to management's views and corrective action plan.
Finding 2024-003: Procurement, Suspension, and Debarment Grantor: National Institute of Health Program: Research and Development Assistance Listing #: 93.395, 93.866 Title: Cancer Treatment Research, Aging Research Award Year: 3/1/2019-11/30/2023, 2/15/2021-1/31/2026 Award #: 3UM1CA18670405S1, 5R01AG07094105 Criteria: -2 CFR 200, Subpart D which require institutions to (1) maintain and use documented procedures for procurement transactions under a federal award or subaward, including for acquisition of property or services; (2) maintain records sufficient to detail the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price. -2 CFR 200.214 which restricts making federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in federal awards. Condition: -For 2 of 25 procurements sampled, the University documented both supplier justification and the purchase order after receipt of an invoice from the vendor. -For 1 of 25 procurements sampled, the University did not maintain evidence of their price/cost analysis as requires when the procurement exceeds the simplified acquisition threshold of $250,000. -For 1 of 25 samples selected for suspension and debarment, the University performed the suspension/debarment screen after the date and payment of the vendor invoice. Cause: For vendors that existed in the legacy accounting system, the University has not consistently documented vendor screening results. Additionally, procurement decisions/conclusions were not consistently documented prior to executing transactions with vendors. Effect: There is a risk that the University could enter into transactions with vendors that are suspended/debarred. Separately, failure to document procurement decisions in a timely manner could impact the University's ability to demonstrate compliance with federal regulations and the University's procurement policies. Questioned Costs: There are no questioned costs as the vendor selected was not suspended or debarred and procurement transactions were deemed allowable. Recommendation: Management should enhance its existing processes to ensure all decisions and conclusions supporting procurements are made in a timely manner and completely documented in the procurement files prior to entering into transactions with vendors. The University should also ensure that all required suspension and debarment checks are performed, and documentation is maintained in advance of transacting with vendors. Management's View and Corrective Action Plan: Please refer to management's views and corrective action plan.
Criteria or specific requirement: 2 CFR 200.214 Suspension and Debarment restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. 2 CFR 180.300 states that an entity may determine suspension and debarment status by: a) Checking SAM (System for Award Management) Exclusions; or b) Collecting a certification from that person; or c) Adding a clause or condition to the covered transaction with that person Per 2 CFR 200.303, non-federal entities receiving federal awards must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: Kansas Department of Health and Environment (Department) was unable to provide supporting documentation that it had performed suspension and debarment verification procedures before the start of procurement contracts for twelve contracts of a total of twenty-eight selections (43%) tested. Questioned costs: None. Context: Twenty-eight transactions were selected for testing which included fifteen contracts and thirteen subawards. For twelve of fifteen contracts (80%), the Department was unable to provide documentation supporting when it had verified the contractors’ suspension and debarment status. The Department provided auditors with documentation that the contractors were not suspended or debarred, however, auditors were not able to verify that the status was documented prior to the start of the contracts. No exceptions were noted for the thirteen subawards tested. Cause: The Department’s procedures and internal controls are not sufficient to ensure that it verifies and properly documents contractors’ suspension and debarment status prior to the execution of contracts. Effect: Failure to perform suspension and debarment verification procedures before the procurement of good or services could result in the payment of federal funds to contractors that are ineligible to participate in federal assistance programs. Repeat Finding: Yes, Finding 2023 – 008. Recommendation: We recommend that the Department enhance its procedures and internal controls to ensure that it verifies and maintains documentation of its contractors’ suspension and debarment status prior to the execution of all contracts. Verification can be performed by either checking SAM exclusions and maintaining documentation when the verification occurred, collecting a signed certification from the contractor prior to contract execution, or adding a clause or condition to the contract. We further recommend that documentation is readily available for audit. Views of responsible officials: Management disagrees with this finding. KDHE disagrees with this finding. KDHE has an established process in place which is documented in the Procurement Policies and Procedures manual that was provided as part of the audit request which shows that verification of suspension and debarment in the System for Award Management takes place prior to contractual agreements being fully executed as part of the agency’s established process. There is no requirement that KDHE is aware of that requires that the date of verification be documented. Auditor’s Concluding Remarks: Management’s response did not persuade the auditor to revise the finding. Evidence of SAM verification occurring prior to or the same time as the contract being signed was not provided.
Criteria or specific requirement: 2 CFR 200.214 Suspension and Debarment restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. 2 CFR 180.300 states that an entity may determine suspension and debarment status by: a) Checking SAM (System for Award Management) Exclusions; or b) Collecting a certification from that person; or c) Adding a clause or condition to the covered transaction with that person Per 2 CFR 200.303, non-federal entities receiving federal awards must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: Kansas Department of Health and Environment (Department) was unable to provide supporting documentation that it had performed suspension and debarment verification procedures before the start of procurement contracts for twelve contracts of a total of twenty-eight selections (43%) tested. Questioned costs: None. Context: Twenty-eight transactions were selected for testing which included fifteen contracts and thirteen subawards. For twelve of fifteen contracts (80%), the Department was unable to provide documentation supporting when it had verified the contractors’ suspension and debarment status. The Department provided auditors with documentation that the contractors were not suspended or debarred, however, auditors were not able to verify that the status was documented prior to the start of the contracts. No exceptions were noted for the thirteen subawards tested. Cause: The Department’s procedures and internal controls are not sufficient to ensure that it verifies and properly documents contractors’ suspension and debarment status prior to the execution of contracts. Effect: Failure to perform suspension and debarment verification procedures before the procurement of good or services could result in the payment of federal funds to contractors that are ineligible to participate in federal assistance programs. Repeat Finding: Yes, Finding 2023 – 008. Recommendation: We recommend that the Department enhance its procedures and internal controls to ensure that it verifies and maintains documentation of its contractors’ suspension and debarment status prior to the execution of all contracts. Verification can be performed by either checking SAM exclusions and maintaining documentation when the verification occurred, collecting a signed certification from the contractor prior to contract execution, or adding a clause or condition to the contract. We further recommend that documentation is readily available for audit. Views of responsible officials: Management disagrees with this finding. KDHE disagrees with this finding. KDHE has an established process in place which is documented in the Procurement Policies and Procedures manual that was provided as part of the audit request which shows that verification of suspension and debarment in the System for Award Management takes place prior to contractual agreements being fully executed as part of the agency’s established process. There is no requirement that KDHE is aware of that requires that the date of verification be documented. Auditor’s Concluding Remarks: Management’s response did not persuade the auditor to revise the finding. Evidence of SAM verification occurring prior to or the same time as the contract being signed was not provided.
Program: AL 21.027 – COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Suspension & Debarment Grant Number & Year: SLFRP0923, 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, 2024) 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, 2024) 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, 2024), 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, 2024) 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, and those procedures are adequately documented. Condition: The 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 that the County used CSLFRF to pay three vendors over $25,000 each, totaling $1,294,743, during the fiscal year ended June 30, 2024. The County was unable to support that a review was performed to ensure that these vendors were not excluded or disqualified prior to entering into these covered transactions. We reviewed SAM.gov (the “System for Award Management,” an official website of the U.S. Government) 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: 2023-002 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: Saline County will set up procedures to ensure reviews are performed to ensure vendors are not excluded or disqualified (SAM).
NONCOMPLIANCE WITH PROCUREMENT AND SUSPENSION AND DEBARMENT REQUIREMENTS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS; AL No. 21.027; Direct Allocation, YEAR ENDED JUNE 30, 2024 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.
NONCOMPLIANCE WITH PROCUREMENT AND SUSPENSION AND DEBARMENT REQUIREMENTS, CAPITALIZATION GRANTS FOR CLEAN WATER STATE REVOLVING FUNDS, ASSISTANCE LISTING No. 66.458 Criteria: The regulations in 2 CFR part 180 restrict making Federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. Further, 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. Condition: The City did not verify that program recipients/participants were not suspended, debarred, or otherwise excluded from participation in the programs. 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. Criteria: The regulations in 2 CFR part 180 restrict making Federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. Further, 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. Condition: The City did not verify that program recipients/participants were not suspended, debarred, or otherwise excluded from participation in the programs. 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. Criteria: The regulations in 2 CFR part 180 restrict making Federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. Further, 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. Condition: The City did not verify that program recipients/participants were not suspended, debarred, or otherwise excluded from participation in the programs. 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. Criteria: The regulations in 2 CFR part 180 restrict making Federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. Further, 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. Condition: The City did not verify that program recipients/participants were not suspended, debarred, or otherwise excluded from participation in the programs. 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. Criteria: The regulations in 2 CFR part 180 restrict making Federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. Further, 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. Condition: The City did not verify that program recipients/participants were not suspended, debarred, or otherwise excluded from participation in the programs. 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 AND DEBARMENT REQUIREMENTS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS; AL No. 21.027, YEAR ENDED JUNE 30, 2024 Criteria: Per Treasury’s Final Rule FAQs and 2 CFR 200.214, recipients are prohibited 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 allows 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 AND DEBARMENT REQUIREMENTS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS; AL No. 21.027, YEAR ENDED JUNE 30, 2024 Criteria: Per Treasury’s Final Rule FAQs and 2 CFR 200.214, recipients are prohibited 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 allows 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 AND DEBARMENT REQUIREMENTS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS; AL No. 21.027, YEAR ENDED JUNE 30, 2024 Criteria: Per Treasury’s Final Rule FAQs and 2 CFR 200.214, recipients are prohibited 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 allows 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 Number: 2024-008 State/Educational Agency(s): Arkansas Department of Agriculture – Natural Resources Division Pass-Through Entity: Not Applicable ALN Number(s) and Program Title(s): 21.027 – COVID 19: Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Federal Awarding Agency: U.S. Department of the Treasury Federal Award Number(s): SLFRP3627 Federal Award Year(s): 2021 Compliance Requirement(s) Affected: Procurement and Suspension and Debarment Type of Finding: Noncompliance and Material Weakness Repeat Finding: Not applicable Criteria: 2 CFR § 200.214 holds entities subject to 2 CFR Part 180, which restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Condition and Context: The Agency is responsible for ensuring that entities receiving awards are registered in the System for Award Management (SAM) database and have not been suspended or debarred. Registration must occur prior to the issuance of a contract or grant agreement. ALA staff reviewed 13 grant agreements to determine if the Agency was in compliance with the requirement. ALA review revealed that 3 entities, with agreements executed between April 2023 and August 2023, were not registered with SAM prior to the Agency’s issuance of subawards to them. Statistically Valid Sample: Not a statistically valid sample Questioned Costs: Unknown Cause: The Agency failed to establish documented control procedures and did not have adequately trained staff to ensure compliance. Effect: Failure to develop, document, and implement procedures for internal control over compliance increases risk for issuance of contracts and grant agreements to excluded or ineligible entities. Recommendation: ALA staff recommend the Agency strengthen internal controls by developing, documenting, and establishing policies to ensure contracts and grant agreements are only issued to eligible entities. Views of Responsible Officials and Planned Corrective Action: The Department will require all ARPA recipients provide a copy of their current/active registration with Sam.gov with each disbursement request. Moving forward, the Department will require any/all sub recipients with subrecipient monitoring under 2 CFR § 200.214 and subject to 2 CFR Part 180 to provide proof prior to execution of a grant agreement. Once implemented, we will provide staff training to understand what documentation is required prior to execution of an agreement and disbursement of funds. Independent testing of the established controls will be performed by Department Fiscal staff who have no role in the contracting process and this testing will be documented. Anticipated Completion Date: June 30, 2025 Contact Person: Debby Dickson Water Development Division Manager Arkansas Department of Agriculture-Natural Resources Division 1 Natural Resources Drive Little Rock, AR 72205 (501) 225-1598 Debra.Dickson@agriculture.arkansas.gov
NONCOMPLIANCE WITH PROCUREMENT AND SUSPENSION AND DEBARMENT REQUIREMENTS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS, ASSISTANCE LISTING No. 21.027, Direct Allocation, YEAR ENDED JUNE 30, 2024 Criteria: Per 2 CFR 200.214, 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. Condition: The city did not comply with the procurement standards outlined in 2 CFR §200.318-§200.327, which require competitive procurement processes and verification that contractors are not suspended or debarred. Specifically, the city did not verify the eligibility of program recipients/participants/contractors through the System for Award Management (SAM) or equivalent documentation in order to verify that they 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.
Federal Agency: U.S. Department of Defense Program/Cluster: Community Economic Adjustment Assistance for Responding to Threats to the Resilience of a Military Installation Federal Assistance Listing Number: 12.003 Award No.: MIR1973-22-01 Award Year: 2023 Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the 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 City 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 GeneralServices Administration (GSA) and available at https://www.sam.gov/SAM/, (2) collecting acertification from the entity, or (3) adding a clause or condition to the covered transaction withthat entity. 2 CFR 200.318(i) Procurement records. The recipient or subrecipient must maintain records sufficient to detail the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price. The City’s grant policy, chapter 100 of the City’s administrative policy, section 34 states that contracts valued between $3,500 to $150,000 allow for informal procurement methods but requires that price or rate quotes must be obtained (and kept on hand for audit purposes) from an adequate number of qualified sources. 2 CFR 200.327 requires that the recipient's or subrecipient's contracts must contain the applicable provisions described in Appendix II of 2 CFR 200. Condition: During our testing of the City’s provisions for procurement requirements, we noted the following: 1)For two (2) of two (2) contracts selecting for testing there was no evidence that the Cityverified the entity was not suspended or debarred or otherwise excluded from participatingin the transaction, prior to entering the contract. Upon our search, none of the vendorswere suspended or debarred. 2)For one (1) of two (2) contracts selected for testing with a contract value of $103,800, theCity did not document the history of the procurement, including the rationale for themethod of procurement, selection of contract type, basis for contractor selection, and thebasis for the contract price. 3)For two (2) out of two (2) contracts selected for testing, the City did not include allapplicable provisions described in 2 CFR 200 Appendix II. Cause: The City did not follow their policy to verify the information described in the condition prior to entering the transactions. The City did not follow their policy documenting the history of the procurement, including the rationale for the method of procurement, selection of contract type, basis for contractor selection, and the basis for the contract price. The City’s policy does not include the requirement to include all applicable provisions identified in 2 CFR 200 Appendix II in its contracts. Effect: Failure to implement and maintain a proper control process could result in payments to vendors that are suspended or debarred or improper awarding of contracts under the procurement guidance. Questioned Costs: No questioned costs were identified. Context/Sampling: We tested 100% of the procurement transactions. This represented a total of $1,323,800 in contracted services under the grant. $862,375 was paid for contracted services in fiscal year 2024. Repeat Finding from Prior Year(s): No. Recommendation: We recommend the City strengthen its policies and procedures to ensure that the verification of the debarment and suspension is documented and retained, the history of procurement transactions is documented and retained in its official records, and that contracts include all applicable provisions of 2 CFR 200 Appendix II. Views of Responsible Officials: Management concurs with the finding. See separate corrective action plan.
NONCOMPLIANCE WITH PROCUREMENT AND SUSPENSION AND DEBARMENT REQUIREMENTS, DISASTER GRANTS-PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS), ASSISTANCE LISTING No. 97.036 Criteria: Per 2 CFR 200.214, 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. 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.
2024-003 Federal Agency: Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: 1505-0271 - 2021 Award Period: March 3, 2021 – December 31, 2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: Compliance: 2 CFR 200.214 Suspension and Debarment restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. 2 CFR 180.300 states that an entity may determine suspension and debarment status by: (a) Checking SAM (System for Award Management) Exclusions; of (b) Collecting a certification from that person; or (c) Adding a clause of condition to the covered transaction with that person. Controls: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the ”Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Town did not determine the suspension and debarment status of vendors with expenditures exceeding $25,000 on a timely basis, as required by federal regulations. Questioned Cost: None Context: Four of the Five vendors we selected for testing had the suspension and debarment status verified, however it was not performed timely. Cause: The Town’s procedures and internal controls over suspension and debarment are not sufficient to ensure that all vendors’ suspension and debarment status is verified timely. Effect: Failure to verify the suspension and debarment status of vendors may result in the Town issuing payments to vendors what are suspended and debarred and not authorized to provide services under the program. Repeat Finding: Yes, Finding 2023-003 Recommendation: We recommend management ensure policies and procedures include the three options for determining suspension and debarment status listed in 2 CFR 180.300 and that controls are sufficient to ensure that the suspension and debarment status is verified for all vendors prior to issuance of the contract. View of responsible officials and planned corrected actions: Management concurs with this finding. Management has implemented a policy going forward to ensure all vendors entered into a contract will sign a suspension and debarment agreement.
2024-003 Federal Agency: Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: 1505-0271 - 2021 Award Period: March 3, 2021 – December 31, 2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: Compliance: 2 CFR 200.214 Suspension and Debarment restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. 2 CFR 180.300 states that an entity may determine suspension and debarment status by: (a) Checking SAM (System for Award Management) Exclusions; of (b) Collecting a certification from that person; or (c) Adding a clause of condition to the covered transaction with that person. Controls: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the ”Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Town did not determine the suspension and debarment status of vendors with expenditures exceeding $25,000 on a timely basis, as required by federal regulations. Questioned Cost: None Context: Four of the Five vendors we selected for testing had the suspension and debarment status verified, however it was not performed timely. Cause: The Town’s procedures and internal controls over suspension and debarment are not sufficient to ensure that all vendors’ suspension and debarment status is verified timely. Effect: Failure to verify the suspension and debarment status of vendors may result in the Town issuing payments to vendors what are suspended and debarred and not authorized to provide services under the program. Repeat Finding: Yes, Finding 2023-003 Recommendation: We recommend management ensure policies and procedures include the three options for determining suspension and debarment status listed in 2 CFR 180.300 and that controls are sufficient to ensure that the suspension and debarment status is verified for all vendors prior to issuance of the contract. View of responsible officials and planned corrected actions: Management concurs with this finding. Management has implemented a policy going forward to ensure all vendors entered into a contract will sign a suspension and debarment agreement.
NONCOMPLIANCE WITH PROCUREMENT AND SUSPENSION AND DEBARMENT REQUIREMENTS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS, AL No. 21.027, DIRECT ALLOCATION; GRANT No. AM-22-0072 Criteria: Per section 13 of Treasury’s Final Rule FAQs and 2 CFR 200.214, governments 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.
NONCOMPLIANCE WITH PROCUREMENT AND SUSPENSION AND DEBARMENT REQUIREMENTS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS, AL No. 21.027, DIRECT ALLOCATION; GRANT No. AM-22-0072 Criteria: Per section 13 of Treasury’s Final Rule FAQs and 2 CFR 200.214, governments 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 NUMBER 2024-005 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 (3) contract agreements. We found that the Municipality did not include all contract provisions required for non-federal entity contracts under federal awards for two (2) of the three (3) 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 (2023-005 and 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 2024-2025. Responsible Person: Aracelis Suárez, Finance Director
FINDING NUMBER 2024-005 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 (3) contract agreements. We found that the Municipality did not include all contract provisions required for non-federal entity contracts under federal awards for two (2) of the three (3) 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 (2023-005 and 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 2024-2025. Responsible Person: Aracelis Suárez, Finance Director
Coronavirus State and Local Fiscal Recovery Funds—Suspension and Debarment Requirements Background: The State was advanced a total of $3.0 billion under the CSLFRF program in FY 2020-21 and FY 2021-22, from the U.S. Department of the Treasury (U.S. Treasury). CSLFRF was created under the American Rescue Plan Act (ARPA), and later revised by the Consolidated Appropriations Act, 2023. CSLFRF is administered by DOA. DOA expended funding under CSLFRF for various programs that it established. In addition, DOA entered into a memorandum of understanding (MOU) with various state agencies to administer several different programs funded by CSLFRF. In June 2022, DOA entered into an MOU with UW System Administration called the Mental Health Initiative, with the goal of making mental health resources available to students by contracting with providers, providing training to enhance the capacity of university staff to deliver mental health programming, and providing grants to UW institutions to develop mental health programs. In addition, in April 2024 UW System Administration’s Office of Business and Entrepreneurship entered into a subgrant agreement with WEDC to administer technical assistance to grantees of WEDC’s Main Street Bounceback Program using CSLFRF funding. Criteria: 2 CFR s. 200.214 prohibits recipients of federal funding from entering into contracts with suspended or debarred parties. Further, 2 CFR s. 180.300 requires recipients of federal funding to ensure they do not enter into a contract with a suspended or debarred party by completing one of the following steps: -reviewing the suspended and debarred parties listing on SAM.gov; -collecting a certification from the party that they are not suspended or debarred; or -including a clause or condition regarding suspension and debarment in the procurement contract. Condition: We found that UW System Administration entered into contracts with vendors to administer the Mental Health Initiative and the subgrant with WEDC. UW System Administration did not complete or document that it completed any of the required steps to ensure the parties were not suspended or debarred. Context: The MOU with DOA provided UW System Administration $5.0 million in CSLFRF funding for the Mental Health Initiative and, in FY 2023-24, UW System Administration expended $1.7 million. We inquired of UW System Administration staff regarding procedures for ensuring UW System Administration does not enter into a contract with a suspended or debarred party. We also reviewed payments made to vendors and reviewed contracts for two vendors, and reviewed the suspended and debarred parties listing on SAM.gov. We found one of the vendors was registered on SAM.gov and was not on the suspended and debarred parties listing. However, the other vendor was not registered on SAM.gov, so we could not determine the suspension and debarment status of this vendor. The subgrant from WEDC provided UW System Administration $5.0 million in CSLFRF funding, of which UW System Administration expended $666,000 in FY 2023-24. We inquired of staff in UW System Administration’s Office of Business and Entrepreneurship regarding its procedures for ensuring it does not enter into a contract with a suspended or debarred party. We also reviewed payments made to vendors and reviewed contracts for two vendors, and reviewed the suspended and debarred parties listing on SAM.gov. We found the vendors for the WEDC subgrant were not registered on SAM.gov, so we could not determine the suspension and debarment status of these vendors. Questioned Costs: None. Effect: UW System Administration is at increased risk of entering into a contract with a suspended or debarred party, and is in noncompliance with federal requirements. Cause: UW System Administration staff administering the Mental Health Initiative were unaware of the suspension and debarment requirements, and UW System Administration did not have procedures in place to meet the federal requirements. UW System Administration staff indicated that responsibility for and debarment requirements was transitioned to UW-Madison, Research and Sponsored Programs in FY 2024-25. Staff in UW System Administration’s Office of Business and Entrepreneurship who administer the WEDC subgrant noted that they review SAM.gov, as well as other types of vendor checks but did not maintain documentation of the review. Recommendation: We recommend the University of Wisconsin System Administration implement procedures to ensure the suspension and debarment requirements are met and documentation is maintained to demonstrate the requirements were met. Finding 2024-714: Coronavirus State and Local Fiscal Recovery Funds—Suspension and Debarment Requirements COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Numbers Award Years None 2021 Subgrant KSP FY 24-53693 2024 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendation.
Coronavirus State and Local Fiscal Recovery Funds—Suspension and Debarment Requirements Background: The State was advanced a total of $3.0 billion under the CSLFRF program in FY 2020-21 and FY 2021-22, from the U.S. Department of the Treasury (U.S. Treasury). CSLFRF was created under the American Rescue Plan Act (ARPA), and later revised by the Consolidated Appropriations Act, 2023. CSLFRF is administered by DOA. DOA expended funding under CSLFRF for various programs that it established. In addition, DOA entered into a memorandum of understanding (MOU) with various state agencies to administer several different programs funded by CSLFRF. In January 2022, DOA entered into an MOU with Tourism called the Tourism Marketing Initiative. The goal of the initiative related to implementing marketing and communications initiatives to support the travel, hospitality, and adjacent industries to recover from the public health emergency. Criteria: 2 CFR s. 200.214 prohibits recipients of federal funding from entering into contracts with suspended or debarred parties. Further, 2 CFR s. 180.300 requires recipients of federal funding to ensure they do not enter into a contract with a suspended or debarred party by completing one of the following steps: -reviewing the suspended and debarred parties listing on SAM.gov; -collecting a certification from the party that they are not suspended or debarred; or -including a clause or condition regarding suspension and debarment in the procurement contract. Condition: Although Tourism entered into contracts with vendors to administer the Tourism Marketing Initiative, we found that Tourism completed none of the required steps to ensure the parties were not suspended or debarred. Context: The MOU with DOA provided Tourism $7.5 million in CSLFRF funding for the Tourism Marketing Initiative. Tourism expended $972,295 for the initiative in FY 2023-24. We inquired of Tourism staff regarding the agency’s procedures for ensuring it does not enter into a contract with a suspended or debarred party. We also reviewed payments made to vendors and reviewed contracts for five vendors, two of which were entered into during FY 2023-24 and two of which were amended during FY 2023-24. Questioned Costs: None. Effect: Tourism is at increased risk of entering into a contract with a suspended or debarred party and is in noncompliance with federal requirements. Cause: Tourism does not administer significant federal funding. Tourism staff indicated they were unaware of the suspension and debarment requirements and had not developed procedures sufficient and appropriate to meet the federal requirements. Recommendation: We recommend the Wisconsin Department of Tourism establish procedures to ensure it does not contract with suspended or debarred parties and complies fully with all applicable federal requirements for funds it administers. Finding 2024-903: Coronavirus State and Local Fiscal Recovery Funds—Suspension and Debarment Requirements COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Tourism: The Wisconsin Department of Tourism agrees with the audit finding and recommendation.
Coronavirus State and Local Fiscal Recovery Funds—Suspension and Debarment Requirements Background: The State was advanced a total of $3.0 billion under the CSLFRF program in FY 2020-21 and FY 2021-22, from the U.S. Department of the Treasury (U.S. Treasury). CSLFRF was created under the American Rescue Plan Act (ARPA), and later revised by the Consolidated Appropriations Act, 2023. CSLFRF is administered by DOA. DOA expended funding under CSLFRF for various programs that it established. In addition, DOA entered into a memorandum of understanding (MOU) with various state agencies to administer several different programs funded by CSLFRF. In June 2022, DOA entered into an MOU with UW System Administration called the Mental Health Initiative, with the goal of making mental health resources available to students by contracting with providers, providing training to enhance the capacity of university staff to deliver mental health programming, and providing grants to UW institutions to develop mental health programs. In addition, in April 2024 UW System Administration’s Office of Business and Entrepreneurship entered into a subgrant agreement with WEDC to administer technical assistance to grantees of WEDC’s Main Street Bounceback Program using CSLFRF funding. Criteria: 2 CFR s. 200.214 prohibits recipients of federal funding from entering into contracts with suspended or debarred parties. Further, 2 CFR s. 180.300 requires recipients of federal funding to ensure they do not enter into a contract with a suspended or debarred party by completing one of the following steps: -reviewing the suspended and debarred parties listing on SAM.gov; -collecting a certification from the party that they are not suspended or debarred; or -including a clause or condition regarding suspension and debarment in the procurement contract. Condition: We found that UW System Administration entered into contracts with vendors to administer the Mental Health Initiative and the subgrant with WEDC. UW System Administration did not complete or document that it completed any of the required steps to ensure the parties were not suspended or debarred. Context: The MOU with DOA provided UW System Administration $5.0 million in CSLFRF funding for the Mental Health Initiative and, in FY 2023-24, UW System Administration expended $1.7 million. We inquired of UW System Administration staff regarding procedures for ensuring UW System Administration does not enter into a contract with a suspended or debarred party. We also reviewed payments made to vendors and reviewed contracts for two vendors, and reviewed the suspended and debarred parties listing on SAM.gov. We found one of the vendors was registered on SAM.gov and was not on the suspended and debarred parties listing. However, the other vendor was not registered on SAM.gov, so we could not determine the suspension and debarment status of this vendor. The subgrant from WEDC provided UW System Administration $5.0 million in CSLFRF funding, of which UW System Administration expended $666,000 in FY 2023-24. We inquired of staff in UW System Administration’s Office of Business and Entrepreneurship regarding its procedures for ensuring it does not enter into a contract with a suspended or debarred party. We also reviewed payments made to vendors and reviewed contracts for two vendors, and reviewed the suspended and debarred parties listing on SAM.gov. We found the vendors for the WEDC subgrant were not registered on SAM.gov, so we could not determine the suspension and debarment status of these vendors. Questioned Costs: None. Effect: UW System Administration is at increased risk of entering into a contract with a suspended or debarred party, and is in noncompliance with federal requirements. Cause: UW System Administration staff administering the Mental Health Initiative were unaware of the suspension and debarment requirements, and UW System Administration did not have procedures in place to meet the federal requirements. UW System Administration staff indicated that responsibility for and debarment requirements was transitioned to UW-Madison, Research and Sponsored Programs in FY 2024-25. Staff in UW System Administration’s Office of Business and Entrepreneurship who administer the WEDC subgrant noted that they review SAM.gov, as well as other types of vendor checks but did not maintain documentation of the review. Recommendation: We recommend the University of Wisconsin System Administration implement procedures to ensure the suspension and debarment requirements are met and documentation is maintained to demonstrate the requirements were met. Finding 2024-714: Coronavirus State and Local Fiscal Recovery Funds—Suspension and Debarment Requirements COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Numbers Award Years None 2021 Subgrant KSP FY 24-53693 2024 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendation.
Coronavirus State and Local Fiscal Recovery Funds—Suspension and Debarment Requirements Background: The State was advanced a total of $3.0 billion under the CSLFRF program in FY 2020-21 and FY 2021-22, from the U.S. Treasury. CSLFRF was created under ARPA, and later revised by the Consolidated Appropriations Act, 2023. CSLFRF is administered by DOA. DOA expended funding under CSLFRF for various programs that it established. In addition, DOA entered into an MOU with various state agencies to administer several different programs funded by CSLFRF. DOA entered into an MOU with DWD called the Workforce Innovation Grant (WIG) Program, which allowed DWD to provide grant funding to governments, nonprofit organizations, and tribal governments to design and innovate plans for addressing workforce challenges caused by the public health emergency. In April 2024, DWD entered into an agreement with UW-Eau Claire to administer a grant under the WIG Program. Criteria: 2 CFR s. 200.214 prohibits recipients of federal funding from entering into contracts with suspended or debarred parties. Further, 2 CFR s. 180.300 requires recipients of federal funding to ensure they do not enter into a contract with a suspended or debarred party by completing one of the following steps: -reviewing the suspended and debarred parties listing on SAM.gov; -collecting a certification from the party that they are not suspended or debarred; or -including a clause or condition regarding suspension and debarment in the procurement contract. Condition: We found that UW-Eau Claire entered into contracts with vendors to administer its WIG Program and, for some contracts, it did not complete or document that it completed any of the required steps to ensure the parties were not suspended or debarred. Context: The agreement with DWD provides UW-Eau Claire $9.4 million in CSLFRF funding for its WIG Program. We inquired of UW-Eau Claire staff regarding its procedures for ensuring it does not enter into a contract with a suspended or debarred party. We also reviewed payments made to vendors. For two of the seven vendor contracts we reviewed, we found that UW-Eau Claire did not perform procedures related to suspension and debarment. We found both vendors were registered on SAM.gov and were not on the suspended and debarred parties listing. Questioned Costs: None. Effect: UW-Eau Claire is at increased risk of entering into a contract with a suspended or debarred party, and is in noncompliance with federal requirements. Cause: UW-Eau Claire staff administering the grant indicated that it was not identified during the procurement process that these two contracts related to federal funding and, therefore, that a review of each vendor’s suspension and debarment status was needed. Recommendation: We recommend the University of Wisconsin-Eau Claire implement procedures to ensure the suspension and debarment requirements are met and documentation is maintained to support that the requirements are met. Finding 2024-715: Coronavirus State and Local Fiscal Recovery Funds—Suspension and Debarment Requirements COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin-Eau Claire: The University of Wisconsin-Eau Claire agrees with the audit finding and recommendation.
Coronavirus State and Local Fiscal Recovery Funds—Suspension and Debarment Requirements Background: The State was advanced a total of $3.0 billion under the CSLFRF program in FY 2020-21 and FY 2021-22, from the U.S. Department of the Treasury (U.S. Treasury). CSLFRF was created under the American Rescue Plan Act (ARPA), and later revised by the Consolidated Appropriations Act, 2023. CSLFRF is administered by DOA. DOA expended funding under CSLFRF for various programs that it established. In addition, DOA entered into a memorandum of understanding (MOU) with various state agencies to administer several different programs funded by CSLFRF. In June 2022, DOA entered into an MOU with UW System Administration called the Mental Health Initiative, with the goal of making mental health resources available to students by contracting with providers, providing training to enhance the capacity of university staff to deliver mental health programming, and providing grants to UW institutions to develop mental health programs. In addition, in April 2024 UW System Administration’s Office of Business and Entrepreneurship entered into a subgrant agreement with WEDC to administer technical assistance to grantees of WEDC’s Main Street Bounceback Program using CSLFRF funding. Criteria: 2 CFR s. 200.214 prohibits recipients of federal funding from entering into contracts with suspended or debarred parties. Further, 2 CFR s. 180.300 requires recipients of federal funding to ensure they do not enter into a contract with a suspended or debarred party by completing one of the following steps: -reviewing the suspended and debarred parties listing on SAM.gov; -collecting a certification from the party that they are not suspended or debarred; or -including a clause or condition regarding suspension and debarment in the procurement contract. Condition: We found that UW System Administration entered into contracts with vendors to administer the Mental Health Initiative and the subgrant with WEDC. UW System Administration did not complete or document that it completed any of the required steps to ensure the parties were not suspended or debarred. Context: The MOU with DOA provided UW System Administration $5.0 million in CSLFRF funding for the Mental Health Initiative and, in FY 2023-24, UW System Administration expended $1.7 million. We inquired of UW System Administration staff regarding procedures for ensuring UW System Administration does not enter into a contract with a suspended or debarred party. We also reviewed payments made to vendors and reviewed contracts for two vendors, and reviewed the suspended and debarred parties listing on SAM.gov. We found one of the vendors was registered on SAM.gov and was not on the suspended and debarred parties listing. However, the other vendor was not registered on SAM.gov, so we could not determine the suspension and debarment status of this vendor. The subgrant from WEDC provided UW System Administration $5.0 million in CSLFRF funding, of which UW System Administration expended $666,000 in FY 2023-24. We inquired of staff in UW System Administration’s Office of Business and Entrepreneurship regarding its procedures for ensuring it does not enter into a contract with a suspended or debarred party. We also reviewed payments made to vendors and reviewed contracts for two vendors, and reviewed the suspended and debarred parties listing on SAM.gov. We found the vendors for the WEDC subgrant were not registered on SAM.gov, so we could not determine the suspension and debarment status of these vendors. Questioned Costs: None. Effect: UW System Administration is at increased risk of entering into a contract with a suspended or debarred party, and is in noncompliance with federal requirements. Cause: UW System Administration staff administering the Mental Health Initiative were unaware of the suspension and debarment requirements, and UW System Administration did not have procedures in place to meet the federal requirements. UW System Administration staff indicated that responsibility for and debarment requirements was transitioned to UW-Madison, Research and Sponsored Programs in FY 2024-25. Staff in UW System Administration’s Office of Business and Entrepreneurship who administer the WEDC subgrant noted that they review SAM.gov, as well as other types of vendor checks but did not maintain documentation of the review. Recommendation: We recommend the University of Wisconsin System Administration implement procedures to ensure the suspension and debarment requirements are met and documentation is maintained to demonstrate the requirements were met. Finding 2024-714: Coronavirus State and Local Fiscal Recovery Funds—Suspension and Debarment Requirements COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Numbers Award Years None 2021 Subgrant KSP FY 24-53693 2024 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendation.
Coronavirus State and Local Fiscal Recovery Funds—Suspension and Debarment Requirements Background: The State was advanced a total of $3.0 billion under the CSLFRF program in FY 2020-21 and FY 2021-22, from the U.S. Department of the Treasury (U.S. Treasury). CSLFRF was created under the American Rescue Plan Act (ARPA), and later revised by the Consolidated Appropriations Act, 2023. CSLFRF is administered by DOA. DOA expended funding under CSLFRF for various programs that it established. In addition, DOA entered into a memorandum of understanding (MOU) with various state agencies to administer several different programs funded by CSLFRF. In January 2022, DOA entered into an MOU with Tourism called the Tourism Marketing Initiative. The goal of the initiative related to implementing marketing and communications initiatives to support the travel, hospitality, and adjacent industries to recover from the public health emergency. Criteria: 2 CFR s. 200.214 prohibits recipients of federal funding from entering into contracts with suspended or debarred parties. Further, 2 CFR s. 180.300 requires recipients of federal funding to ensure they do not enter into a contract with a suspended or debarred party by completing one of the following steps: -reviewing the suspended and debarred parties listing on SAM.gov; -collecting a certification from the party that they are not suspended or debarred; or -including a clause or condition regarding suspension and debarment in the procurement contract. Condition: Although Tourism entered into contracts with vendors to administer the Tourism Marketing Initiative, we found that Tourism completed none of the required steps to ensure the parties were not suspended or debarred. Context: The MOU with DOA provided Tourism $7.5 million in CSLFRF funding for the Tourism Marketing Initiative. Tourism expended $972,295 for the initiative in FY 2023-24. We inquired of Tourism staff regarding the agency’s procedures for ensuring it does not enter into a contract with a suspended or debarred party. We also reviewed payments made to vendors and reviewed contracts for five vendors, two of which were entered into during FY 2023-24 and two of which were amended during FY 2023-24. Questioned Costs: None. Effect: Tourism is at increased risk of entering into a contract with a suspended or debarred party and is in noncompliance with federal requirements. Cause: Tourism does not administer significant federal funding. Tourism staff indicated they were unaware of the suspension and debarment requirements and had not developed procedures sufficient and appropriate to meet the federal requirements. Recommendation: We recommend the Wisconsin Department of Tourism establish procedures to ensure it does not contract with suspended or debarred parties and complies fully with all applicable federal requirements for funds it administers. Finding 2024-903: Coronavirus State and Local Fiscal Recovery Funds—Suspension and Debarment Requirements COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Tourism: The Wisconsin Department of Tourism agrees with the audit finding and recommendation.
2024-001: Suspension and Debarment Control Design Deficiency Grantor: Department of the Treasury Program Title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Award Name: American Rescue Plan Act (“ARPA”) - Coronavirus State Fiscal Recovery Fund and Coronavirus Local Fiscal Recovery Fund, Coronavirus State and Local Fiscal Recovery Funds (HVIP) Award Numbers: GRT000755, GRT000759 Assistance Listing Titles: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Years: May 1, 2023 – December 31, 2024, July 1, 2023 – September 30, 2024 Passthrough Entities: Baltimore City Health Department, Mayor and City Council of Baltimore Criteria Per 2 CFR 200.214, when entering into a covered transaction with an entity, the auditee must have established procedures to verify that the entity is not suspended, debarred or otherwise excluded from participating in the transaction. Condition JHHS did not have robust procedures and controls in place from Q1 through Q3 FY2024 to ensure that an upfront suspension and debarment check was performed on all external vendors prior to entering into a covered transaction with JHHS. Cause Since 2018, JHHS has relied on a third-party service provider, PaymentWorks, to perform suspension and debarment checks on external vendors, which requires a setup process to be completed by the vendor. There were some vendors that did not complete setup in PaymentWorks, for which management did not perform a separate suspension and debarment check manually. Starting in Q4 2024, management implemented a quarterly control procedure to reconcile all vendors with expenditures in the federal grant cost center to the PaymentWorks listing to identify vendors for which a manual suspension and debarment check must be performed. Effect There was a period of time, Q1 through Q3, in which JHHS may have entered into covered transactions with suspended or debarred entities. When management performed the new control in Q4 2024, they identified 11 vendors that had not been previously reviewed and performed a manual check for suspension and debarment via Sam.gov. None of these 11 vendors manually checked were suspended or debarred. There were no instances of noncompliance identified as a result of this control design deficiency in our FY2024 audit work. Questioned Costs There are no questioned costs associated with this finding. Recommendation JHHS should continue the quarterly process of reconciling the complete vendor listing with PaymentWorks to ensure all necessary vendors are reviewed for suspension and debarment prior to entering into covered transactions. Management’s Views and Corrective Action Plan Refer to Management’s View’s and Corrective Action Plan at the end of the report.
2024-001: Suspension and Debarment Control Design Deficiency Grantor: Department of the Treasury Program Title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Award Name: American Rescue Plan Act (“ARPA”) - Coronavirus State Fiscal Recovery Fund and Coronavirus Local Fiscal Recovery Fund, Coronavirus State and Local Fiscal Recovery Funds (HVIP) Award Numbers: GRT000755, GRT000759 Assistance Listing Titles: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Years: May 1, 2023 – December 31, 2024, July 1, 2023 – September 30, 2024 Passthrough Entities: Baltimore City Health Department, Mayor and City Council of Baltimore Criteria Per 2 CFR 200.214, when entering into a covered transaction with an entity, the auditee must have established procedures to verify that the entity is not suspended, debarred or otherwise excluded from participating in the transaction. Condition JHHS did not have robust procedures and controls in place from Q1 through Q3 FY2024 to ensure that an upfront suspension and debarment check was performed on all external vendors prior to entering into a covered transaction with JHHS. Cause Since 2018, JHHS has relied on a third-party service provider, PaymentWorks, to perform suspension and debarment checks on external vendors, which requires a setup process to be completed by the vendor. There were some vendors that did not complete setup in PaymentWorks, for which management did not perform a separate suspension and debarment check manually. Starting in Q4 2024, management implemented a quarterly control procedure to reconcile all vendors with expenditures in the federal grant cost center to the PaymentWorks listing to identify vendors for which a manual suspension and debarment check must be performed. Effect There was a period of time, Q1 through Q3, in which JHHS may have entered into covered transactions with suspended or debarred entities. When management performed the new control in Q4 2024, they identified 11 vendors that had not been previously reviewed and performed a manual check for suspension and debarment via Sam.gov. None of these 11 vendors manually checked were suspended or debarred. There were no instances of noncompliance identified as a result of this control design deficiency in our FY2024 audit work. Questioned Costs There are no questioned costs associated with this finding. Recommendation JHHS should continue the quarterly process of reconciling the complete vendor listing with PaymentWorks to ensure all necessary vendors are reviewed for suspension and debarment prior to entering into covered transactions. Management’s Views and Corrective Action Plan Refer to Management’s View’s and Corrective Action Plan at the end of the report.
2024-001 COVID-19 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 Federal Award Identification Number: Not Available. Award Period: March 3, 2021 through December 31, 2024 Compliance Requirement: Suspension and Debarment Criteria or Specific Requirement: The United States 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. Condition and Context: For one vendor in our audit sample of eight, documentation was not provided to support that the City verified the vendor was not debarred or suspended from participation in Federal assistance programs or activities for the fiscal year ended June 30, 2024. Questioned Costs: None. The vendor was not suspended or debarred. Cause: Procedures were not adhered to for the documentation of 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 procedures be strengthened to document the verification that all vendors are not suspended or debarred from participation in Federal assistance programs or activities prior to entering into a transaction. Views of Responsible Officials: Management agrees with the finding.
2024-007 Program: Santa Ana River Mainstem Project Federal Financial Assistance Listing Number: 12.U01 Federal Grantor: U.S. Department of Defense Award No. and Year: 2020 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) compliance with procurement and suspension and debarment requirements, we noted for three (3) of three (3) contracts selected for testing, there was no evidence that 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. In addition, the following information was not provided at the time of the contract award for three (3) of three (3) contracts selected: - Byrd Anti-Lobbying Amendment - Debarment and Suspension Cause: The OCPW 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 and debarment prior to entering the contract. Additionally, the OCPW department 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 three (3) of ten (10) procurement contracts were sampled. The condition noted above was identified during our procedures related to procurement and suspension and debarment. Repeat Finding from Prior Years: No. Recommendation: We recommend that the OCPW department adhere to its procurement procedures requiring the suspension and debarment verification is performed prior to entering into a covered transaction. Additionally, we recommend the OCPW modify and strengthen its current policies and procedures to ensure that all applicable required provisions are communicated to contracts in accordance with 2 CFR Appendix II to Part 200. Views of Responsible Officials: Management agrees. See separately issued Corrective Action Plan.
2024-005 Program: Equitable Sharing Program Federal Financial Assistance Listing Number: 16.922 Federal Grantor: U.S. Department of Justice Award No. and Year: 2024 Compliance Requirements: Procurement and Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance 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. Condition: For three (3) of eight (8) vendors tested, we were not able to verify that the Sheriff Department followed their internal control to ensure the vendor was not suspended or debarred prior to entering the transaction. Cause: The Sheriff department did not follow their policy to verify the information described in the condition prior to entering the transactions. Effect: The County’s policy was not consistently followed, which required verification of suspension or debarment prior to entering the contract. The department subsequently verified that the vendor was not suspended or debarred. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A nonstatistical sample of eight (8) out of thirty-three (33) procurement contracts were tested. The condition noted above was identified during our procedures related to procurement and suspension and debarment. Repeat Finding from Prior Years: No. Recommendation: We recommend that the Sheriff’s Department adhere to their procurement procedures requiring the suspension or debarment verification is performed prior to entering into a covered transaction. Views of Responsible Officials: Management agrees. See separately issued Corrective Action Plan.
2024-005 Program: Equitable Sharing Program Federal Financial Assistance Listing Number: 16.922 Federal Grantor: U.S. Department of Justice Award No. and Year: 2024 Compliance Requirements: Procurement and Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance 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. Condition: For three (3) of eight (8) vendors tested, we were not able to verify that the Sheriff Department followed their internal control to ensure the vendor was not suspended or debarred prior to entering the transaction. Cause: The Sheriff department did not follow their policy to verify the information described in the condition prior to entering the transactions. Effect: The County’s policy was not consistently followed, which required verification of suspension or debarment prior to entering the contract. The department subsequently verified that the vendor was not suspended or debarred. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A nonstatistical sample of eight (8) out of thirty-three (33) procurement contracts were tested. The condition noted above was identified during our procedures related to procurement and suspension and debarment. Repeat Finding from Prior Years: No. Recommendation: We recommend that the Sheriff’s Department adhere to their procurement procedures requiring the suspension or debarment verification is performed prior to entering into a covered transaction. Views of Responsible Officials: Management agrees. See separately issued Corrective Action Plan.
2024-005 Program: Equitable Sharing Program Federal Financial Assistance Listing Number: 16.922 Federal Grantor: U.S. Department of Justice Award No. and Year: 2024 Compliance Requirements: Procurement and Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance 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. Condition: For three (3) of eight (8) vendors tested, we were not able to verify that the Sheriff Department followed their internal control to ensure the vendor was not suspended or debarred prior to entering the transaction. Cause: The Sheriff department did not follow their policy to verify the information described in the condition prior to entering the transactions. Effect: The County’s policy was not consistently followed, which required verification of suspension or debarment prior to entering the contract. The department subsequently verified that the vendor was not suspended or debarred. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A nonstatistical sample of eight (8) out of thirty-three (33) procurement contracts were tested. The condition noted above was identified during our procedures related to procurement and suspension and debarment. Repeat Finding from Prior Years: No. Recommendation: We recommend that the Sheriff’s Department adhere to their procurement procedures requiring the suspension or debarment verification is performed prior to entering into a covered transaction. Views of Responsible Officials: Management agrees. See separately issued Corrective Action Plan.