Finding 1155538 (2024-008)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-09-26
Audit: 367845
Organization: Itasca County (MN)

AI Summary

  • Core Issue: The County failed to keep records showing that they checked vendors for suspension or debarment before transactions.
  • Impacted Requirements: This violates Uniform Guidance 2 CFR 180.300, which mandates verification of vendor status.
  • Recommended Follow-Up: The County should improve procedures to ensure documentation of suspension and debarment checks is retained as per federal guidelines.

Finding Text

SUSPENSION AND DEBARMENT (2024-008) Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Assistance Listing Number: 21.027 Pass-Through Agency: Not applicable, direct Pass-Through Numbers: Not applicable, direct Federal Award Identification Number and Year: Not applicable, direct Compliance Requirement Affected: Suspension and Debarment Award Period: Year Ended December 31, 2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matter Criteria or Specific Requirement: According to Uniform Guidance 2 CFR 180.300, the County must check for federally suspended or debarred vendors prior to entering into a covered transaction. Condition: The County did not retain documentation for the date that the verification was completed. Questioned Costs: None Context: For seven of seven transactions tested for suspension and debarment, the County did not retain documentation that the verification was completed. Cause: Lack of oversight by management. Effect: The County could be using a vendor that is suspended or debarred at the time of the transaction. Repeat Finding: No Recommendation: We recommend that the County review their procedures to ensure they are following their policy that requires all suspension and debarment checks to be retained and follow federal guidelines. Views of Responsible Officials: There is no disagreement with the audit finding.

Corrective Action Plan

SUSPENSION AND DEBARMENT Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Assistance Listing Number: 21.027 Pass-Through Agency: Not applicable, direct Federal Award Identification Number and Pass-Through Number: Not applicable, direct Compliance Requirement Affected: Suspension and Debarment Award Period: Year Ended December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Recommendation: We recommend the County review their procedures to ensure they are following their policy that requires all suspension and debarment checks to be retained and follow federal guidelines. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will ensure each report is reviewed by someone other than the preparer. Name of the contact person responsible for corrective action: Gail Guck, Accounting Manager Planned completion date for corrective action plan: December 31, 2025

Categories

Procurement, Suspension & Debarment Internal Control / Segregation of Duties Significant Deficiency

Other Findings in this Audit

  • 1155539 2024-005
    Material Weakness Repeat
  • 1155540 2024-007
    Material Weakness Repeat
  • 1155541 2024-006
    Material Weakness Repeat
  • 1155542 2024-006
    Material Weakness Repeat
  • 1155543 2024-005
    Material Weakness Repeat
  • 1155544 2024-007
    Material Weakness Repeat
  • 1155545 2024-005
    Material Weakness Repeat
  • 1155546 2024-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.56M
20.205 Highway Planning and Construction $2.06M
15.226 Payments in Lieu of Taxes $681,632
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $627,048
93.558 Temporary Assistance for Needy Families $551,659
93.658 Foster Care Title IV-E $391,235
93.667 Social Services Block Grant $316,033
93.563 Child Support Services $263,370
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $259,617
16.710 Public Safety Partnership and Community Policing Grants $146,900
93.958 Block Grants for Community Mental Health Services $103,544
93.069 Public Health Emergency Preparedness $85,592
93.994 Maternal and Child Health Services Block Grant to the States $77,829
20.219 Recreational Trails Program $75,000
16.575 Crime Victim Assistance $67,441
97.012 Boating Safety Financial Assistance $64,375
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $33,997
97.042 Emergency Management Performance Grants $29,083
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $25,543
93.778 Medical Assistance Program $15,121
20.600 State and Community Highway Safety $14,413
93.575 Child Care and Development Block Grant $11,641
93.556 Marylee Allen Promoting Safe and Stable Families Program $11,251
93.268 Immunization Cooperative Agreements $10,434
93.590 Community-Based Child Abuse Prevention Grants $5,594
93.645 Stephanie Tubbs Jones Child Welfare Services Program $4,813
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $4,575
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $4,524
93.775 State Medicaid Fraud Control Units $1,294
93.767 Children's Health Insurance Program $893