FAC Explorer

Finding 32810 (2022-001)

Significant Deficiency
Requirement
I
Questioned Costs
$1
Year
2022
Accepted
2023-08-27
Audit: 29346
Organization: Sherburne County (MN)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The County did not retain formal documentation or quotes for a $25,000 professional services contract, violating procurement requirements.
  • Impacted Requirements: Small purchase procedures were not followed, as the County failed to obtain adequate price quotations from qualified sources.
  • Recommended Follow-Up: Train all departments on proper procurement documentation and procedures for federally funded contracts to prevent future issues.

Finding Text

2022-001 ? PROCUREMENT Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP1643 - 2021 Award Period: March 3, 2021 through December 31, 2024 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or Specific Requirement: Due to the amount of the noted contract being $25,000, the County should have followed the small purchases method of procurement for the related procurement. If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate by the County. Condition: Formal documentation and quotes were not retained for a professional services contract. While the County did not obtain multiple quotes, the County did contact other local government entities that utilize the service. The costs were based on the population of the municipality and each of the entities stated the value received from the program was well worth the costs. It was corroborated with employees of the County that two other local government entities that obtained services from the noted contractor were contacted to ensure the reasonableness of the cost of the contract, but no formal documentation of those conversations was retained. Questioned Costs: $25,000 Context: 1 of 8 procurements tested did not retain formal documentation of price or rate quotations from an adequate number of qualified sources. Cause: As the conversations to ensure the reasonableness of the contract pricing were either over the phone or in person, no formal documentation of those procedures were retained. Effect: Lack of formal procedure and controls and proper documentation of those controls related to procurement could result in the County entering into a contract with an entity at an unreasonable cost, and, therefore, incurring questioned costs. Repeat Finding: No Recommendation: We recommend that County management ensure all departments are made aware of and trained to properly follow and document the County?s procurement procedures and controls, as they apply to federally funded contracts, to ensure the County retained documentation of price or rate quotations obtained for all procurements entered into using the small purchase procurement method. Views of Responsible Officials: There is no disagreement with the audit finding.

Categories

Questioned Costs Procurement, Suspension & Debarment

Other Findings in this Audit

  • 32806 2022-004
    Significant Deficiency
  • 32807 2022-001
    Significant Deficiency
  • 32808 2022-002
    Material Weakness Repeat
  • 32809 2022-003
    Material Weakness
  • 32811 2022-002
    Material Weakness Repeat
  • 32812 2022-003
    Material Weakness
  • 609248 2022-004
    Significant Deficiency
  • 609249 2022-001
    Significant Deficiency
  • 609250 2022-002
    Material Weakness Repeat
  • 609251 2022-003
    Material Weakness
  • 609252 2022-001
    Significant Deficiency
  • 609253 2022-002
    Material Weakness Repeat
  • 609254 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.778 Medical Assistance Program $2.43M
93.563 Child Support Enforcement $1.71M
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $824,766
93.558 Temporary Assistance for Needy Families $548,899
93.658 Foster Care_title IV-E $503,554
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $429,194
93.667 Social Services Block Grant $324,682
20.205 Highway Planning and Construction $270,078
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $209,462
16.710 Public Safety Partnership and Community Policing Grants $170,984
16.575 Crime Victim Assistance $104,000
93.276 Drug-Free Communities Support Program Grants $101,339
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $95,025
93.994 Maternal and Child Health Services Block Grant to the States $68,949
93.556 Promoting Safe and Stable Families $66,515
93.575 Child Care and Development Block Grant $49,630
20.615 E-911 Grant Program $46,486
97.042 Emergency Management Performance Grants $44,732
90.404 2018 Hava Election Security Grants $40,524
93.069 Public Health Emergency Preparedness $40,503
93.268 Immunization Cooperative Agreements $29,396
93.917 Hiv Care Formula Grants $22,371
93.590 Community-Based Child Abuse Prevention Grants $15,937
93.669 Child Abuse and Neglect State Grants $13,476
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $12,350
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $11,958
93.645 Stephanie Tubbs Jones Child Welfare Services Program $11,054
93.104 Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (sed) $7,338
10.575 Farm to School Grant Program $7,035
21.027 Covid 19 Coronavirus State and Local Fiscal Recovery Funds $6,000
97.012 Boating Safety Financial Assistance $5,500
93.767 Children's Health Insurance Program $4,592
20.600 State and Community Highway Safety $4,083
84.181 Special Education-Grants for Infants and Families $2,100
93.251 Early Hearing Detection and Intervention $1,800
10.572 Wic Farmers' Market Nutrition Program (fmnp) $1,437
93.566 Refugee and Entrant Assistance_state Administered Programs $1,269
93.315 Rare Disorders: Research, Surveillance, Health Promotion, and Education $75