Finding Text
2024-006: SUSPENSION AND DEBARMENT 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 Federal Award Identification Number and Year: SLFRP1480, 2024 Award Period: Year Ended December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: Federal guidelines require grant recipients to perform verification procedures that a vendor is not federally suspended or debarred prior to entering into a covered transaction. Condition: The County did not retain documentation to support that vendors were not suspended or debarred. Questioned Costs: None. The vendor was not federally suspended or debarred. Context: During suspension and debarment testing, one of the six covered transactions we tested did not have a verification that the vendor was not federally suspended or debarred until after having a signed contract Cause: The County did not follow their policy regarding suspension and debarment. Effect: By entering into a contract with a vendor prior to verifying they are not federally suspended or debarred, it is possible that the County could have entered into a contract with a suspended vendor. Repeat Finding: No. Recommendation: We recommend the County implement additional procedures to ensure suspension and debarment verification procedures are followed prior to entering into a contract. Views of responsible officials: There is no disagreement with the audit finding.