Finding 1220053 (2025-002)

2025-002 – Procurement, Suspension and Debarment Finding Type. Immaterial Noncompliance / Significant Deficiency in Internal Control over Compliance (Procurement, Suspension and Debarment). Federal Programs. Special Supplemental Nutrition Program for Women, Infants, and Children (WIC); U.S. Department of Agriculture; Passed through Michigan Department of Health and Human Services; ALN 10.557; award numbers 252MI013W5003, 252MI003W1003, and 232MI013W5003. Criteria. A recipient of federal awards is required to determine that vendors being paid with federal funds are not suspended or debarred from doing business with the County. Such procedures are required whenever the amount disbursed to a single vendor in a given year is expected to be at least $25,000. Condition. While the County indicated that they have been completing suspension and debarment checks on County vendors in the past, evidence of these suspension and debarment checks was not retained and made available for audit. Cause. Historical documentation supporting suspension and debarment reviews was not available for audit. In addition, formalized procedures for documenting and retaining evidence of compliance had not been consistently implemented. Effect. As a result of this condition, the County was exposed to the risk that disbursements of federal awards would be made to vendors suspended or debarred by the federal government and subject to disallowance by the grantor. Questioned Costs. No costs have been questioned as a result of this finding. Recommendation. We recommend that the County verify that any of their vendors with $25,000 spent with federal funds were not suspended or debarred, and that documentation of these procedures be retained. View of Responsible Officials. The County agrees with the finding and has prepared a corrective action plan.