Finding 1222781 (2024-009)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2026-07-02
Audit: 406357
Organization: COUNTY OF LINCOLN (OK)

AI Summary

  • Core Issue: The County failed to conduct necessary vendor checks for purchases over $25,000 and lacks written standards on conflicts of interest.
  • Impacted Requirements: This oversight leads to noncompliance with federal grant requirements, risking potential loss of federal funds.
  • Recommended Follow-Up: The County should update its procurement policy, implement standardized procedures, provide training, and adopt a compliance checklist for federal expenditures.

Finding Text

Condition: Upon inquiry of county personnel and a test of fourteen (14) disbursements totaling $696,192, the following weaknesses were noted: • The County did not perform required suspension and debarment verifications on vendors for purchases exceeding $25,000. • The County does not have written standards of conduct that cover conflicts of interest and govern the performance of its employees engaged in the selection, award, and administration of contract. Cause of Condition: Policies and procedures have not been designed and implemented to ensure compliance with all federal award requirements. Effect of Condition: This condition resulted in noncompliance with federal grant requirements for this program and could result in loss of federal funds. Recommendation: OSAI recommends the County gain an understanding of the grant requirements and design and implement policies and procedures to ensure compliance with applicable grant requirements. Management Response: Chairman of the Board of County Commissioners: The Board acknowledges the need to incorporate specific federal clause language and procurement documentation standards into the County’s written procurement policy. • The County procurement policy will be updated to include required federal purchase and Uniform Guidance provisions. • Standardized procurement documentation procedures will be implemented for purchases involving federal funds. • Training will be provided to relevant personnel regarding federal purchasing requirements. • A compliance checklist will be adopted for federal expenditures to ensure documentation consistency. • Federal procurement requirements will be reviewed with personnel prior to project initiation, and documentation will be evaluated at project close out to confirm compliance. No questioned costs were identified in connection with these findings.

Corrective Action Plan

Procurement Policy will be included in the Employee Handbook and federal contracts will be reviewed by Grant Recipient to ensure all federal guidelines are met during the life of the grant. Communication between grant recipient, County Clerk, Treasurer and BOCC to make sure all guidelines are followed.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1222779 2024-007
    Material Weakness Repeat
  • 1222780 2024-008
    Material Weakness Repeat
  • 1222782 2024-010
    Material Weakness Repeat
  • 1222783 2024-007
    Material Weakness Repeat
  • 1222784 2024-011
    Material Weakness Repeat
  • 1222785 2024-012
    Material Weakness Repeat
  • 1222786 2024-013
    Material Weakness Repeat
  • 1222787 2024-014
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
20.205 HIGHWAY PLANNING AND CONSTRUCTION $1.17M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $935,377
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $7,100
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $5,535