Finding 1103212 (2021-006)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2021
Accepted
2025-03-12
Audit: 345806
Organization: Kittson County (MN)

AI Summary

  • Core Issue: The County failed to obtain required price quotes and did not check vendor suspension or debarment status for transactions over $25,000.
  • Impacted Requirements: Non-compliance with 2 CFR sections 200.320 and 180.220, and the County's procurement policy does not align with Uniform Guidance.
  • Recommended Follow-Up: Update the procurement policy to ensure compliance and implement procedures to verify vendor eligibility before transactions.

Finding Text

Federal Program Coronavirus State and Local Fiscal Recovery Funds (CFDA 21.027) Procurement, Suspension, and Debarment Criteria 2 CFR sections 200.320(a) (1) and (2) states “If small purchase [$10,000] procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources. Also, vendors for whom the county enters into a covered transaction ($25,000 or higher) with needs to be ensured that they are not suspended or debarred from federal funds per 2 CFR section 180.220. Furthermore, an entity should have a procurement policy that follows Uniform Guidance. Condition Two transactions were selected for testing. One transaction did not have quotes obtained. For both transactions, we noted the County did not review for suspension and debarment. We also noted the County’s procurement policy did not follow Uniform Guidance. Questioned Costs None Context In a population of 3, 2 transactions were tested and one of these transactions was not done through the proper procurement process. Also, our suspension and debarment population was two and we noted during testing of each transaction that the county did not ensure the vendor was not suspended or debarred from federal funds before entering into the covered transaction. Finally, we noted during review of the county’s procurement policy, it did not follow Uniform Guidance. Cause The County does not have sufficient procedures in place to ensure all expenditures comply with Uniform Guidance. Effect The County is not in compliance with Uniform Guidance. Repeat Finding No Recommendation The county should follow their procurement policy for procurement and should updated their procurement policy for suspension and debarment. Views of Responsible Officials and Planned Corrective Actions The County agrees with the recommendation and will review its policies and procedures.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 526769 2021-005
    Significant Deficiency Repeat
  • 526770 2021-006
    Material Weakness
  • 526771 2021-007
    Significant Deficiency
  • 526772 2021-009
    Significant Deficiency
  • 526773 2021-009
    Significant Deficiency
  • 526774 2021-008
    Significant Deficiency Repeat
  • 526775 2021-009
    Significant Deficiency
  • 526776 2021-008
    Significant Deficiency Repeat
  • 1103211 2021-005
    Significant Deficiency Repeat
  • 1103213 2021-007
    Significant Deficiency
  • 1103214 2021-009
    Significant Deficiency
  • 1103215 2021-009
    Significant Deficiency
  • 1103216 2021-008
    Significant Deficiency Repeat
  • 1103217 2021-009
    Significant Deficiency
  • 1103218 2021-008
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $109,597
97.067 Homeland Security Grant Program $89,775
93.667 Social Services Block Grant $48,182
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $45,305
93.558 Temporary Assistance for Needy Families $38,879
93.658 Foster Care Title IV-E $31,604
93.563 Child Support Services $16,351
97.042 Emergency Management Performance Grants $14,964
21.019 Coronavirus Relief Fund $4,428
93.590 Community-Based Child Abuse Prevention Grants $2,294
93.778 Medical Assistance Program $1,558
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $930
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $384
93.767 Children's Health Insurance Program $218
93.645 Stephanie Tubbs Jones Child Welfare Services Program $209
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $95