Finding 1079508 (2022-001)

Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: July 1, 2022 through December 31, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The Organization should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, it was noted that the Organization did not implement policies and procedures over procurement, suspension, and debarment under Uniform Grant Guidance in the year under audit. Questioned Costs: None Context: In a sample of 8, 7 did not follow 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award provisions of procurement, suspension, and debarment. Cause: The Organization is in the startup phases and the Uniform Grant Requirements are new as 2022 was the first year federal funding was received. Procurement, suspension, and debarment procedures were not yet in place when getting the Organization's operations started. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat finding: No Recommendation: We recommend that management implement policies and procedures over procurement and suspension and debarment under Uniform Grant Guidance going forward.Views of responsible officials: We agreed with the above comment. The Organization will put in place a policy and procedure over procurement and suspension and debarment under Uniform Grant Guidance and will consult with external auditors.