Finding 1236029 (2025-003)

Reference Number: 2025-003 Prior Year Finding: No Prior Year Finding: No Federal Agency: U.S Department of the Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Number: N/A Compliance Requirement: Suspension and Debarment Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters Criteria or specific requirement When a nonfederal entity enters into a covered transaction with an entity at a lower tier, the nonfederal entity must verify that the entity, as defined in 2 CFR Section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition/ Context All five vendors tested did not have proper documentation maintained to support suspension and debarment verification was performed prior to them being paid with federal funds. Per SAM.gov, there was no history of the vendor being suspended or debarred. Cause The County’s policies and procedures did not require documentation to be maintained to verify vendors are not suspended or debarred prior to paying with Federal grant funds. Effect The County could make a disbursement to a vendor that is suspended or debarred. Questioned Costs None noted. Recommendation We recommend the County establish policies and procedures to require documentation be maintained to verify vendors are not suspended or debarred prior to being paid with federal funds. Views of responsible officials and planned corrective actions Management agrees with the finding.