Finding Text
U.S. Department of Treasury Pass-through Washoe County COVID-19 Coronavirus State and Local Fiscal Recovery Fund, 21.027 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects grant award ARPA-SLFRF #48 included under assistance listing 21.027 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) states that entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. In addition, the Uniform Guidance section 200.303 provides that entities must establish and maintain effective internal control that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: Procedures were not followed to verify if an entity was suspended or debarred before entering into a covered transaction. Cause: Truckee Meadows Fire Protection District (the District) did not have adequate internal controls to ensure procedures were followed to verify a vendor was not suspended or debarred prior to entering into a covered transaction. Effect: A covered transaction may be entered into with a vendor that is suspended or debarred and not prevented or detected by the District. Questioned Costs: None Context/Sampling: No sampling was used. We tested the entire population of one covered transaction and the vendor was not verified for suspension and debarment prior to entering into a covered transaction. Repeat Finding from Prior Year: No Recommendation: We recommend the District enhance internal controls to ensure vendors are not suspended or debarred prior to entering into covered transactions.