Finding Text
Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP0727, 2024 Compliance Requirement Affected: Suspension and Debarment Award Period: Year Ending December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: Physical evidence that the County ensured vendor was not suspended or debarred was not retained. Questioned Costs: None. Context: For two of two transactions tested for suspension and debarment, the County did not have documentation that the verification was done. Cause: The County does not have policies or procedures in place to ensure proper evidence with compliance requirements are retained. Effect: County could be using a vendor that is suspended or debarred at the time of the transaction. Repeat Finding: Yes, Finding 2023-0011. Recommendation: It is recommended that the County ensure properly language related to suspension and debarment is included in the contract, or other records are kept on file to support a verification was done. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding.