Finding 23345 (2022-005)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-09-25
Audit: 18608
Organization: Brown County (MN)

AI Summary

  • Core Issue: The County failed to check if a contractor was suspended or debarred before signing a contract, violating compliance requirements.
  • Impacted Requirements: Internal controls and compliance procedures were not followed, specifically regarding suspension and debarment checks as mandated by 2 CFR 180.300.
  • Recommended Follow-Up: Ensure adherence to internal control procedures for all contractors, regardless of familiarity, to prevent future compliance issues.

Finding Text

SUSPENSION AND DEBARMENT (2022-005) Federal Agency: U.S. Department of Transportation Federal Program Name: Highway Planning and Construction (Highway Planning and Construction Cluster) Assistance Listing Number: 20.205 Federal Award Identification Number and Year: 2022-M1, 2022 Pass-Through Agency: Minnesota Department of Transportation Pass-Through Number: 2022-M1 Award Period: Year-Ended December 31, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Standard internal control and compliance procedures suggest that the County should ensure the suspension and debarment language is in the signed contract or if not in the contract, the county retains documentation of the County's search on sam.gov. In addition, according to Uniform Guidance 2 CFR 180.300, the County must check for federally suspended or debarred vendors prior to entering a covered transaction. Condition: The County did not ensure that a contractor was not suspended or debarred, and language was not within the contract. Questioned Costs: None. Context: The County entered into a contract for the purchase of seal coat oil, and the contract did not include suspension and debarment self-certification language. The County also did not perform its own search on the sam.gov website. Cause: Management oversight due to familiarity with the contractor. Effect: Federal funds could have been paid to a suspended or debarred contractor. Repeat Finding: Not applicable. Recommendation: We recommend that the County follow its established internal control procedures regardless of familiarity with contractors. Views of responsible officials: There is no disagreement with the audit finding.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 23344 2022-005
    Significant Deficiency
  • 23346 2022-003
    Significant Deficiency
  • 23347 2022-004
    Significant Deficiency
  • 23348 2022-003
    Significant Deficiency
  • 23349 2022-004
    Significant Deficiency
  • 23350 2022-003
    Significant Deficiency
  • 23351 2022-004
    Significant Deficiency
  • 599786 2022-005
    Significant Deficiency
  • 599787 2022-005
    Significant Deficiency
  • 599788 2022-003
    Significant Deficiency
  • 599789 2022-004
    Significant Deficiency
  • 599790 2022-003
    Significant Deficiency
  • 599791 2022-004
    Significant Deficiency
  • 599792 2022-003
    Significant Deficiency
  • 599793 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.778 Medical Assistance Program $1.00M
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $300,054
20.509 Formula Grants for Rural Areas and Tribal Transit Program $278,680
93.558 Temporary Assistance for Needy Families $224,190
20.205 Highway Planning and Construction $206,251
93.658 Foster Care_title IV-E $190,460
93.667 Social Services Block Grant $151,601
16.738 Edward Byrne Memorial Justice Assistance Grant Program $136,068
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $130,987
16.575 Crime Victim Assistance $110,109
93.563 Child Support Enforcement $109,536
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $87,533
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $62,590
97.042 Emergency Management Performance Grants $53,867
93.994 Maternal and Child Health Services Block Grant to the States $33,170
90.404 2018 Hava Election Security Grants $30,116
93.069 Public Health Emergency Preparedness $26,349
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $14,226
93.590 Community-Based Child Abuse Prevention Grants $12,728
93.575 Child Care and Development Block Grant $11,548
93.669 Child Abuse and Neglect State Grants $5,600
93.645 Stephanie Tubbs Jones Child Welfare Services Program $4,344
93.556 Promoting Safe and Stable Families $3,804
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $3,014
84.181 Special Education-Grants for Infants and Families $2,347
93.767 Children's Health Insurance Program $1,703
93.314 Early Hearing Detection and Intervention Information System (ehdi-Is) Surveillance Program $825
93.566 Refugee and Entrant Assistance_state Administered Programs $491
93.268 Immunization Cooperative Agreements $289