Finding 1201158 (2024-001)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2024

Accepted

2026-03-30

Audit: 395852

Organization: Midas Council of Governments (IA)

Auditor: TP ANDERSON & COMPANY PC CPAS

AI Summary

Core Issue: Vendors providing services under the federal program were not checked for eligibility against suspension or debarment lists.
Impacted Requirements: Compliance with federal guidelines that mandate vendors must not be suspended or debarred.
Recommended Follow-Up: Implement a process to verify vendors against SAM.gov and maintain documentation of these checks.

Finding Text

Grant Compliance – The Organization’s major federal program requires vendors providing services and materials to the program to be in good standing to provide goods and services for a federally funded program. Criteria – Guidance for the Organization’s major federal program requires that vendors must not be suspended or debarred from providing goods or services to the federal government. Condition – Vendors paid under the Organization’s major federal program were not investigated by comparing them to a listing of companies that have been suspended or debarred from doing business with the federal government. Cause – Management was not aware that the vendors needed to be tested. Effect – Vendors may not have been eligible to participate in a federally funded program. Recommendation – Vendors should be compared to those companies that have been suspended or debarred by referring to the government website at SAM.gov. This comparison should be documented and maintained. Response and Corrective Action Plan – See page 38 Conclusion – Response accepted.

Corrective Action Plan

While MIDAS had utilized SAM.GOV for contracts when required, MIDAS was unaware that SAM.GOV was to be utilized for all vendors expected to be paid at least $25,000, even if they were not under contract. MIDAS has started utilizing SAM.GOV for all vendors that are expected to be paid at least $25,000 to ensure they are not suspended or debarred once our audit noted this requirement.

Other Findings in this Audit

1201146 2024-001

Material Weakness Repeat
1201147 2024-002

Material Weakness Repeat
1201148 2024-001

Material Weakness Repeat
1201149 2024-002

Material Weakness Repeat
1201150 2024-001

Material Weakness Repeat
1201151 2024-002

Material Weakness Repeat
1201152 2024-001

Material Weakness Repeat
1201153 2024-002

Material Weakness Repeat
1201154 2024-001

Material Weakness Repeat
1201155 2024-002

Material Weakness Repeat
1201156 2024-001

Material Weakness Repeat
1201157 2024-002

Material Weakness Repeat
1201159 2024-002

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
11.307	ECONOMIC ADJUSTMENT ASSISTANCE	$475,103
11.302	ECONOMIC DEVELOPMENT SUPPORT FOR PLANNING ORGANIZATIONS	$79,635
93.044	SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART B, GRANTS FOR SUPPORTIVE SERVICES AND SENIOR CENTERS	$38,590
20.505	METROPOLITAN TRANSPORTATION PLANNING AND STATE AND NON-METROPOLITAN PLANNING AND RESEARCH	$36,640
20.509	FORMULA GRANTS FOR RURAL AREAS AND TRIBAL TRANSIT PROGRAM	$3,475