Finding Text
2022-004 ? Suspension and Debarment Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP1480, 2022 Compliance Requirement Affected: Procurement, Suspension and Debarment Award Period: Year ended December 31, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal 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: The county did not check to see if vendors were suspended or debarred. Questioned costs: None noted. Context: During our testing, it was noted that the County did not perform procedures to ensure vendors were suspended or debarred for 3 of 5 procurement transactions tested. The sample size as based on guidance from chapter 11 of the AICPA Audit Guide, Government Auding Standards and Single Audits. Cause: Management oversight. Effect: The auditor noted no instances of noncompliance with the provisions of suspension and debarment, however the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: No Recommendation: We recommend County management design procedures and controls to ensure compliance with suspension and debarment provisions. Before entering into a contract, a check should be performed and retained to support the contractor status. Views of responsible officials: There is no disagreement with the audit finding.