FAC Explorer

Finding 1130721 (2024-002)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-04-07
Audit: 352825
Organization: Sunrise County Economic Council (ME)
Auditor: One River CPAS

AI Summary

  • Core Issue: The organization failed to comply with federal requirements by not having a formal process to check if contractors were suspended or debarred before entering agreements.
  • Impacted Requirements: This noncompliance violates 2 CFR 200.214, which mandates that non-federal entities must verify contractor eligibility regarding suspension and debarment.
  • Recommended Follow-Up: Management should create a written policy and strengthen controls to ensure compliance with suspension and debarment checks for all relevant contracts.

Finding Text

Noncompliance with Procurement, Suspension, & Debarment Standard (Significant Deficiency) Federal Award Program: 21.027 COVID-19: Coronavirus State and Local Fiscal Recovery Funds Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, §200.214 prohibits non-federal entities from contracting with parties that are suspended or debarred under covered transactions. Condition and Context: Audit procedures revealed that there was not a policy or process in place to formally document the review of the contracted entity for suspension and debarment prior to entering into the agreement. Cause: The Organization does not have a formal process to document suspension and debarment. Management was unaware of the requirement, though it was clear the management thoughtfully considered the contractor’s reputation and determined that the contractor was suited for the agreement. Effect: The Organization did not perform its review of suspension and debarment for this agreement, though the contractor was found to not be on prohibited lists at annual review. Questioned Costs: None Recommendation: Management should strengthen their processes, controls, and review over suspension and debarment processes, and develop a written policy on such items to ensure compliance with Uniform Administrative Requirements. Views of Responsible Officials and Planned Corrective Actions: As stated by the auditor, SCEC is selective about who to enter contracts with and has long-standing relationships with the organizations we were working with on these efforts, who also had other Federal contracts in process that we were aware of. We have instituted a finance procedure to check all contractors and sub-contractors on the Sam.gov’s verification of debarment and suspension tool before the first payment under the contract is issued and a policy that all SCEC contracts or subawards over $25,000 that utilize federal or state funds must include a suspension and debarment certification.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 554250 2024-003
    Significant Deficiency Repeat
  • 554251 2024-003
    Significant Deficiency Repeat
  • 554252 2024-003
    Significant Deficiency Repeat
  • 554253 2024-003
    Significant Deficiency Repeat
  • 554254 2024-003
    Significant Deficiency Repeat
  • 554255 2024-003
    Significant Deficiency Repeat
  • 554256 2024-003
    Significant Deficiency Repeat
  • 554257 2024-003
    Significant Deficiency Repeat
  • 554258 2024-003
    Significant Deficiency Repeat
  • 554259 2024-003
    Significant Deficiency Repeat
  • 554260 2024-003
    Significant Deficiency Repeat
  • 554261 2024-003
    Significant Deficiency Repeat
  • 554262 2024-003
    Significant Deficiency Repeat
  • 554263 2024-003
    Significant Deficiency Repeat
  • 554264 2024-003
    Significant Deficiency Repeat
  • 554265 2024-003
    Significant Deficiency Repeat
  • 554266 2024-003
    Significant Deficiency Repeat
  • 554267 2024-003
    Significant Deficiency Repeat
  • 554268 2024-003
    Significant Deficiency Repeat
  • 554269 2024-003
    Significant Deficiency Repeat
  • 554270 2024-003
    Significant Deficiency Repeat
  • 554271 2024-003
    Significant Deficiency Repeat
  • 554272 2024-003
    Significant Deficiency Repeat
  • 554273 2024-003
    Significant Deficiency Repeat
  • 554274 2024-003
    Significant Deficiency Repeat
  • 554275 2024-003
    Significant Deficiency Repeat
  • 554276 2024-003
    Significant Deficiency Repeat
  • 554277 2024-003
    Significant Deficiency Repeat
  • 554278 2024-003
    Significant Deficiency Repeat
  • 554279 2024-002
    Significant Deficiency
  • 1130692 2024-003
    Significant Deficiency Repeat
  • 1130693 2024-003
    Significant Deficiency Repeat
  • 1130694 2024-003
    Significant Deficiency Repeat
  • 1130695 2024-003
    Significant Deficiency Repeat
  • 1130696 2024-003
    Significant Deficiency Repeat
  • 1130697 2024-003
    Significant Deficiency Repeat
  • 1130698 2024-003
    Significant Deficiency Repeat
  • 1130699 2024-003
    Significant Deficiency Repeat
  • 1130700 2024-003
    Significant Deficiency Repeat
  • 1130701 2024-003
    Significant Deficiency Repeat
  • 1130702 2024-003
    Significant Deficiency Repeat
  • 1130703 2024-003
    Significant Deficiency Repeat
  • 1130704 2024-003
    Significant Deficiency Repeat
  • 1130705 2024-003
    Significant Deficiency Repeat
  • 1130706 2024-003
    Significant Deficiency Repeat
  • 1130707 2024-003
    Significant Deficiency Repeat
  • 1130708 2024-003
    Significant Deficiency Repeat
  • 1130709 2024-003
    Significant Deficiency Repeat
  • 1130710 2024-003
    Significant Deficiency Repeat
  • 1130711 2024-003
    Significant Deficiency Repeat
  • 1130712 2024-003
    Significant Deficiency Repeat
  • 1130713 2024-003
    Significant Deficiency Repeat
  • 1130714 2024-003
    Significant Deficiency Repeat
  • 1130715 2024-003
    Significant Deficiency Repeat
  • 1130716 2024-003
    Significant Deficiency Repeat
  • 1130717 2024-003
    Significant Deficiency Repeat
  • 1130718 2024-003
    Significant Deficiency Repeat
  • 1130719 2024-003
    Significant Deficiency Repeat
  • 1130720 2024-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.558 Temporary Assistance for Needy Families $992,378
21.027 Coronavirus State and Local Fiscal Recovery Funds $219,639
10.767 Intermediary Relending Program $190,115
10.870 Rural Microentrepreneur Assistance Program $178,053
12.002 Procurement Technical Assistance for Business Firms $106,082
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $79,030
10.351 Rural Business Development Grant $74,892
20.205 Highway Planning and Construction $48,571
90.601 Northern Border Regional Development $42,981
32.011 Affordable Connectivity Outreach Grant Program $38,139
11.472 Unallied Science Program $35,265
11.008 Noaa Mission-Related Education Awards $33,565
66.818 Brownfields Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements $31,459
15.939 Heritage Partnership $25,284
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $18,643
11.037 Chips Incentives Program $13,968
10.310 Agriculture and Food Research Initiative (afri) $10,306
97.039 Hazard Mitigation Grant $8,737
84.116 Fund for the Improvement of Postsecondary Education $6,761
47.083 Integrative Activities $6,240
10.868 Rural Energy for America Program $5,881
11.419 Coastal Zone Management Administration Awards $2,412
47.076 Stem Education (formerly Education and Human Resources) $2,269
59.059 Congressional Grants $823