Finding Text
2022-003 Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP2889, 2022 Compliance Requirement Affected: Procurement, Suspension and Debarment Award Period: Year Ended December 31, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: According to Uniform Guidance 2 CFR 180.300, the County must check for federally suspended or debarred vendors prior to entering a covered transaction and the County must also comply with procurement requirements in accordance with Uniform Guidance 2 CFR 200.318. Condition: Support for the procurement method used by the County was not retained. For suspension and debarment, the County did not retain documentation for the date that the verification was done. Questioned Costs: Unknown. Context: For one of five procurement transactions tested, support for the use of noncompetitive proposals method was not retained. For one of five procurement transactions tested the proper procurement method was not used. For five of five transactions tested for suspension and debarment, the County retained documentation the procedures were done; however, the date of verification was not kept on file to support verification was done prior to the transaction taking place. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: County policy does not align with federal requirements. Effect: County could be using a vendor that is suspended or debarred at the time of the transaction or they could be overpaying for the transaction if not properly procured. Repeat Finding: No. Recommendation: We recommend the County align their county-wide policies to address any necessary modifications to the process if procurement transactions are federally funded. Views of responsible officials: There is no disagreement with the audit finding.