Finding Text
U.S. Department of Housing and Urban Development, passed through Barren County Fiscal Court ALN 14.251 – Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Contract No. B-22-CP-KY-0347 (2022) and B-23-CP-KY-0612 (2023) Criteria: 2 CFR 180 subpart C includes the responsibilities of persons who participate in covered transactions. 2 CFR 200.303 requires recipients and subrecipients to establish, document, and maintain effective internal controls over Federal awards. Condition: During our audit procedures, we noted there was no process in place to ensure vendors were not on a suspension or debarment list, and were eligible to be reimbursed with federal grant funds. Cause: Certain internal controls were not in place to prevent or detect and correct payments made to suspended or debarred vendors. Effect: Federal funds could be used to reimburse payments made to vendors that are suspended or debarred. Questioned Costs: None. Recommendation: We recommend management obtain a greater understanding of the suspension and debarment contained in 2 CFR 180, and implement a review process whereby vendors are periodically checked for suspension and debarment. Views of Responsible Officials and Planned Corrective Actions: Management concurs with the finding and as a result, the Authority will implement procedures to include verifying new and existing vendors are not on suspension and debarment listings.