Finding 1237676 (2025-002)

Criteria or Specific Requirement Some federal programs are subject to suspension and debarment requirements, which are designed to ensure that federal funds are not awarded to individuals or entities that have a history of noncompliance with federal regulations or that pose a risk to the integrity of federal programs. The suspension and debarment regulations require recipients of federal funding to ensure contractors and subrecipients are not suspended or debarred by the federal government prior to executing a contract. Condition Prior to 2024, the County did not have a process to perform suspension and debarment verifications for federally funded contracts. The fiscal year 2025 vendors were under contracts executed before those controls were implemented; therefore, suspension and debarment verifications were not performed before contract execution. Questioned Costs None Context Suspension and debarment assessments were not performed by management prior to the contract being awarded. Cause Prior to 2024, the County did not have a process to perform suspension and debarment assessments outlined in 2 CFR 180.300. Effect Federal funding could be spent with organizations that are suspended or disbarred from participation in federal programs. Recommendation We recommend the County continue to implement its suspension and debarment controls and retain documentation evidencing that verifications are performed before federally funded contracts are executed. Repeat Finding Yes, prior year finding number 2024-003 Views of Responsible Officials There is no disagreement with the audit finding.