Finding 1182255 (2025-002)

Criteria: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Before entering into a covered transaction the entity must verify that the contractor is not suspended, debarred, or otherwise excluded from participating in the transaction. Condition: During the course of the audit, it was observed that suspension and debarment checks were not conducted for two vendors. This oversight was identified through a comprehensive review of the vendor management process and related documentation. Questioned Costs: None noted. Context: CLA found the following: Suspension and debarment procedures were not perfomed for two out of two vendors prior to entering into the transaction. Cause: The County began implementing standard procedures for ensuring that vendors are not suspended or debarred during the fiscal year under audit based on findings identified during the prior audit. However, due to timing these were not fully implemented during the fiscal year. Effect: Without checking debarment before engaging services, the County could have entered into an agreement with a vendor that was disbarred from receiving federal funding. Repeat Finding: Repeat of finding 2024-001 in the prior year. Recommendation: CLA recommends the County continue to implement procedures to ensure that federal guidance is followed relating to suspension and disbarment and provide training on these procedures. Views of responsible officials: There is no disagreement with the audit finding.