Finding Text
Procurement Criteria: The Uniform Guidance requires management to design and implement formalized internal control policies and procedures which address the compliance requirements (including procurement) associated with all federal programs administered by the grantee. Condition and context: During the current year audit, we noted (2) instances in which documentation for suspension/debarment from participating in federal awards programs was not available for our review. Additionally, while contracts (state format) with these vendors were on file, the contractual provisions indicated by the Uniform Guidance to be included in contracts involving federal funds were not present. Cause: The County utilized state approved format for contracts which did not address the requirements outlined in the Uniform Guidance for federal funds. Effect or potential effect: Noncompliance with federal provisions (including suspension/debarment) could occur. Questioned costs: $386,914. This represents the total amount paid in fiscal year 2024 associated with the two contracts identified ($140,000 and $246,914, respectively). Auditor’s recommendation: We recommend the County review procurement policies and procedures in accordance with the Uniform Guidance. Additionally, we recommend standard contractual language utilized by the County be updated accordingly. We recommend legal counsel be consulted as deemed necessary. The County should annually review federal compliance requirements for all federal programs on an annual basis.