Finding Text
Finding No. 2025-004 – Suspension and Debarment Federal agency: US Treasury Federal program title: Covid 19 – State and Local Fiscal Recovery Fund Listing Number: 21.027 Pass-Through Agency: N/A Award Period: March 3, 2021 through December 31, 2024 Type of Finding: Significant Deficiency in Internal Control and Other Matter Criteria or Specific Requirement: The Federal Register 79 FR 75879 states a participant in a covered transaction with an entity at a lower tier must verify that the entity is not suspended or debarred or otherwise excluded from participating in the transactions. Condition: During our testing of five entities the County entered covered transactions with, we noted the County was not able to provide sufficient evidence of verification for three of five of the entities before initiating the transactions. Questioned Costs: None Context: We noted this condition in three out of five vendors tested. Effect: Noncompliance could lead to entering into a transactions with a suspended or debarred entity and potential loss of funding. Cause: The County was unaware of the specific requirement for the related grant in the prior year, and contracts carried over into current year. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2024-004. Recommendation: We recommend the County review its policies and procedures to adequately document the verification of entities it enters into covered transactions with as not being suspended or debarred. Views of Responsible Officials: There is no disagreement with the audit finding. The Finance Committee will review and update the County Purchasing Ordinance to include language to address this issue.