Finding 1214245 (2025-004)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-05-08

AI Summary

  • Core Issue: The Organization lacks proper documentation for vendor suspension and debarment verifications, risking non-compliance with Federal requirements.
  • Impacted Requirements: This finding violates Uniform Guidance §200.213 and §200.318(c)(1), which mandate recordkeeping for vendor eligibility.
  • Recommended Follow-Up: Management should create a formal process to document and retain verification records and conduct regular reviews of vendor eligibility.

Finding Text

Federal Agency: U.S. Department of the Treasury Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agency: Johnson County Government and KCMO Housing and Community Development Department Pass-Through Numbers: SLFRF02226 and 2022-0104 Award Period: 3/3/2021-10/31/2026 and 3/19/2024-12/31/2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: The Organization performed suspension and debarment verification for vendors; however, documentation evidencing the completion and timing of those verifications was not retained for compliance and permanent recordkeeping purposes. Criteria or specific requirement: Uniform Guidance §200.213 and §200.318(c)(1) require non-Federal entities to ensure that covered transactions are not conducted with parties that are suspended or debarred and to maintain adequate records to demonstrate compliance with applicable Federal requirements. Cause: The Organization did not have a formal process in place requiring retention of documentation supporting suspension and debarment verification for vendors. Effect: Without adequate documentation, the Organization is unable to demonstrate compliance with Federal suspension and debarment requirements and could unknowingly contract with vendors that are not eligible to receive Federal funds. Repeat Finding: No. Recommendation: Management should implement a formal process to document and retain evidence of suspension and debarment verification for all applicable vendors, including verification dates. Management should also establish periodic review procedures to ensure continued vendor eligibility in accordance with Federal requirements. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.

Corrective Action Plan

Suspension and Debarment – Assistance Listing No. 21.027 Recommendation: Management should implement a formal process to document and retain evidence of suspension and debarment verification for all applicable vendors, including verification dates. Management should also establish periodic review procedures to ensure continued vendor eligibility in accordance with Federal requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization will establish and/or revise policies, procedures, and internal controls to ensure the documentation and retention of evidence of suspension and debarment verification, including periodic review of all applicable vendors. Name of the contact person responsible for corrective action: Lindsay Hicks Planned completion date for corrective action plan: June 30, 2026

Categories

Procurement, Suspension & Debarment Eligibility Significant Deficiency

Other Findings in this Audit

  • 1214242 2025-004
    Material Weakness Repeat
  • 1214243 2025-004
    Material Weakness Repeat
  • 1214244 2025-004
    Material Weakness Repeat
  • 1214246 2025-005
    Material Weakness Repeat
  • 1214247 2025-005
    Material Weakness Repeat
  • 1214248 2025-005
    Material Weakness Repeat
  • 1214249 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $499,994
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $159,126
14.252 SECTION 4 CAPACITY BUILDING FOR COMMUNITY DEVELOPMENT AND AFFORDABLE HOUSING $45,831
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $43,552
14.169 HOUSING COUNSELING ASSISTANCE PROGRAM $9,342