FAC Explorer

Finding 381247 (2023-002)

Significant Deficiency Repeat Finding
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-03-19
Audit: 295958
Organization: County of Orange, California (CA)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: Significant deficiencies in internal controls over compliance were found, specifically regarding the verification of vendor suspension or debarment before contract awards.
  • Impacted Requirements: Non-compliance with 2 CFR sections 200.303(a) and 200.214, which mandate effective internal controls and verification of vendor eligibility.
  • Recommended Follow-Up: OCPW, OCCR, and SSA should strictly follow procurement procedures for vendor verification and enhance policies to ensure all required contract provisions are communicated to contractors.

Finding Text

Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Financial Assistance Listing Number: 21.027 Federal Grantor: U.S. Department of Treasury Award No. and Year: 2021 Compliance Requirements: Procurement and Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance and Instance of Noncompliance Criteria: 2 CFR section 200.303(a), Internal Controls, states that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Title 2 CFR Section 200.214 of the Uniform Guidance states that the County must comply with 2 CFR part 180, which implements Executive Orders 12549 and 12689. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Per 2 CFR Section 180.300, 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. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at https://www.sam.gov/SAM/, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity. 2 CFR section Appendix II to Part 200, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards states that in addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain certain provisions, as applicable. Condition: During our testing of the Orange County Public Works (OCPW), Orange County Community Resources (OCCR) and the Social Services Agency’s (SSA) provisions for procurement requirements under the COVID-19 Coronavirus State and Local Fiscal Recovery Funds, we noted the following instances where there was no evidence that the OCPW, OCCR or SSA departments verified the entity was not suspended or debarred or otherwise excluded from participating in the transaction, prior to entering the contract, in accordance with County policy: • Four (4) of four (4) contracts through the OCPW department selected for testing. • Three (3) of eight (8) contracts through the OCCR department selected for testing. • One (1) of one (1) contract through the SSA department selected for testing. The following information was not provided at the time of the contract award for four (4) of four (4) contracts selected for testing within the OCPW department, one (1) of one (1) contract selected within SSA, and five (5) of eight (8) contracts selected for testing within the OCCR department: • Byrd Anti-Lobbying Amendment • Clean Air Act and Federal Pollution Control Act provision The following information was not provided at the time of the contract award for two (2) of four (4) contracts selected for testing within the OCPW department and one (1) of one (1) contract selected for testing within SSA: • Contract Work Hours and Safety Standards Act provision The following information was not provided at the time of the contract award for one (1) of one contract selected for testing within SSA: • Davis-Bacon Act provision • Equal Employment Opportunity provision Cause: The OCPW, OCCR and SSA departments did not follow their policy to verify the information described in the condition prior to entering the transactions and did not consistently ensure that the applicable required provisions were communicated to contractors. Effect: The County’s control and compliance were not consistently followed, which required verification of suspension or debarment prior to entering the contract. EB reviewed the vendor’s status on SAM.gov and verified the vendors selected for testing were not suspended and debarred at the date of the audit. Additionally, the OCPW, SSA and OCCR departments did not identify the applicable required provisions of the contract to the contractors at the time of the contract award. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A nonstatistical sample of four (4) out of twelve (12) procurement contracts were sampled from OCPW and eight (8) out of nineteen (19) procurement contracts were sampled from OCCR for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds. The entire population of 1 (contract) was tested from SSA for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds. Repeat Finding from Prior Years: Yes, Finding 2022-003 and 2022-009. Recommendation: We recommend that the OCPW, OCCR and SSA departments adhere to their procurement procedures requiring the suspension or debarment verification is performed prior to entering into a covered transaction. Additionally, we recommend the OCPW, SSA and OCCR departments modify and strengthen its current policies and procedures to ensure that all applicable required provisions are communicated to contractors in accordance with 2 CFR Appendix II to Part 200. Views of Responsible Officials: Management agrees. See separately issued Corrective Action Plan.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 381232 2023-003
    Significant Deficiency
  • 381233 2023-004
    Significant Deficiency
  • 381234 2023-001
    Material Weakness Repeat
  • 381235 2023-001
    Material Weakness Repeat
  • 381236 2023-001
    Material Weakness Repeat
  • 381237 2023-001
    Material Weakness Repeat
  • 381238 2023-002
    Significant Deficiency Repeat
  • 381239 2023-002
    Significant Deficiency Repeat
  • 381240 2023-002
    Significant Deficiency Repeat
  • 381241 2023-002
    Significant Deficiency Repeat
  • 381242 2023-002
    Significant Deficiency Repeat
  • 381243 2023-002
    Significant Deficiency Repeat
  • 381244 2023-002
    Significant Deficiency Repeat
  • 381245 2023-002
    Significant Deficiency Repeat
  • 381246 2023-002
    Significant Deficiency Repeat
  • 381248 2023-002
    Significant Deficiency Repeat
  • 381249 2023-002
    Significant Deficiency Repeat
  • 381250 2023-002
    Significant Deficiency Repeat
  • 381251 2023-002
    Significant Deficiency Repeat
  • 381252 2023-002
    Significant Deficiency Repeat
  • 381253 2023-002
    Significant Deficiency Repeat
  • 957674 2023-003
    Significant Deficiency
  • 957675 2023-004
    Significant Deficiency
  • 957676 2023-001
    Material Weakness Repeat
  • 957677 2023-001
    Material Weakness Repeat
  • 957678 2023-001
    Material Weakness Repeat
  • 957679 2023-001
    Material Weakness Repeat
  • 957680 2023-002
    Significant Deficiency Repeat
  • 957681 2023-002
    Significant Deficiency Repeat
  • 957682 2023-002
    Significant Deficiency Repeat
  • 957683 2023-002
    Significant Deficiency Repeat
  • 957684 2023-002
    Significant Deficiency Repeat
  • 957685 2023-002
    Significant Deficiency Repeat
  • 957686 2023-002
    Significant Deficiency Repeat
  • 957687 2023-002
    Significant Deficiency Repeat
  • 957688 2023-002
    Significant Deficiency Repeat
  • 957689 2023-002
    Significant Deficiency Repeat
  • 957690 2023-002
    Significant Deficiency Repeat
  • 957691 2023-002
    Significant Deficiency Repeat
  • 957692 2023-002
    Significant Deficiency Repeat
  • 957693 2023-002
    Significant Deficiency Repeat
  • 957694 2023-002
    Significant Deficiency Repeat
  • 957695 2023-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $185.76M
97.036 Covid-19 Disaster Grants - Public Assistance (presidentially Declared Disasters) $58.74M
12.U01 Santa Ana River Mainstream Project - Prado Dam Construction $39.02M
93.959 Block Grants for Prevention and Treatment of Substance Abuse $16.63M
20.106 Covid-19 Airport Improvement Program $16.38M
93.658 Foster Care_title IV-E $14.31M
93.778 Medical Assistance Program $12.49M
93.667 Social Services Block Grant $11.01M
93.391 Covid-19 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $9.25M
93.914 Hiv Emergency Relief Project Grants $5.70M
93.268 Covid-19 Immunization Cooperative Agreements $4.70M
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $4.56M
14.231 Covid-19 Emergency Solutions Grant Program $3.25M
93.958 Block Grants for Community Mental Health Services $3.12M
93.069 Public Health Emergency Preparedness $3.00M
14.218 Community Development Block Grants/entitlement Grants $2.94M
14.879 Mainstream Vouchers $2.90M
93.354 Covid-19 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $2.82M
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $2.81M
93.659 Adoption Assistance $2.80M
93.994 Maternal and Child Health Services Block Grant to the States $2.47M
93.917 Hiv Care Formula Grants $2.36M
16.575 Crime Victim Assistance $2.31M
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $2.29M
17.258 Wia Adult Program $2.02M
93.556 Promoting Safe and Stable Families $1.89M
10.923 Emergency Watershed Protection Program $1.68M
93.645 Stephanie Tubbs Jones Child Welfare Services Program $1.66M
21.016 Equitable Sharing $1.63M
93.052 National Family Caregiver Support, Title Iii, Part E $1.44M
17.278 Wia Dislocated Worker Formula Grants $1.38M
20.106 Airport Improvement Program $1.30M
16.034 Covid-19 Coronavirus Emergency Supplemental Funding Program $1.24M
14.267 Continuum of Care Program $1.23M
93.044 Covid-19 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $1.21M
93.563 Child Support Enforcement $1.12M
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $980,599
14.218 Covid-19 Community Development Block Grants/entitlement Grants $915,435
95.001 High Intensity Drug Trafficking Areas Program $858,364
93.940 Hiv Prevention Activities_health Department Based $808,589
97.042 Emergency Management Performance Grants $770,032
93.889 National Bioterrorism Hospital Preparedness Program $755,318
14.241 Housing Opportunities for Persons with Aids $751,737
93.686 Ending the Hiv Epidemic: A Plan for America — Ryan White Hiv/aids Program Parts A and B (b) $745,104
93.767 Children's Health Insurance Program $744,843
14.231 Emergency Solutions Grant Program $722,320
93.918 Grants to Provide Outpatient Early Intervention Services with Respect to Hiv Disease $708,040
93.053 Nutrition Services Incentive Program $704,143
93.268 Immunization Cooperative Agreements $647,624
97.046 Fire Management Assistance Grant $625,128
17.235 Senior Community Service Employment Program $595,518
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $553,664
93.150 Projects for Assistance in Transition From Homelessness (path) $548,505
93.967 Cdc's Collaboration with Academia to Strengthen Public Health $538,523
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $532,844
93.558 Covid-19 Temporary Assistance for Needy Families $522,969
93.052 Covid-19 National Family Caregiver Support, Title Iii, Part E $522,594
16.588 Violence Against Women Formula Grants $513,000
14.896 Family Self-Sufficiency Program $452,308
93.558 Temporary Assistance for Needy Families $412,921
10.025 Plant and Animal Disease, Pest Control, and Animal Care $393,231
17.259 Wia Youth Activities $369,492
16.922 Equitable Sharing Program $353,260
93.590 Community-Based Child Abuse Prevention Grants $307,806
10.555 National School Lunch Program $276,321
97.067 Homeland Security Grant Program $267,527
97.U01 Preparing for Emerging Threats and Hazards Tsa: National Explosives Detection Canine Team Program $258,278
14.239 Covid-19 Home Investment Partnerships Program $246,833
20.616 National Priority Safety Programs $235,347
17.277 Workforce Investment Act (wia) National Emergency Grants $209,450
20.205 Highway Planning and Construction $170,682
93.045 Covid-19 Special Programs for the Aging_title Iii, Part C_nutrition Services $168,419
10.553 School Breakfast Program $166,910
93.603 Adoption Incentive Payments $152,081
93.324 State Health Insurance Assistance Program $146,447
15.226 Payments in Lieu of Taxes $146,094
93.071 Medicare Enrollment Assistance Program $146,065
16.838 Comprehensive Opioid Abuse Site-Based Program $140,593
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $138,810
93.042 Special Programs for the Aging_title Vii, Chapter 2_long Term Care Ombudsman Services for Older Individuals $121,207
16.742 Paul Coverdell Forensic Sciences Improvement Grant Program $118,091
16.741 Dna Backlog Reduction Program $117,782
93.977 Preventive Health Services_sexually Transmitted Diseases Control Grants $103,950
20.600 State and Community Highway Safety $102,046
97.042 Covid-19 Emergency Management Performance Grants $84,054
93.090 Guardianship Assistance $81,943
10.576 Senior Farmers Market Nutrition Program $75,000
93.323 Covid-19 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $72,175
16.U01 Oc Regional Computer Forensics Laboratory $60,367
93.042 Covid-19 Special Programs for the Aging_title Vii, Chapter 2_long Term Care Ombudsman Services for Older Individuals $55,504
14.241 Covid-19 Housing Opportunities for Persons with Aids $52,462
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $49,949
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $40,476
93.041 Special Programs for the Aging_title Vii, Chapter 3_programs for Prevention of Elder Abuse, Neglect, and Exploitation $39,596
10.665 Schools and Roads - Grants to States $29,324
16.738 Edward Byrne Memorial Justice Assistance Grant Program $27,307
93.575 Child Care and Development Block Grant $24,226
93.747 Covid-19 Elder Abuse Prevention Interventions Program $23,666
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $22,728
93.634 Support for Ombudsman and Beneficiary Counseling Programs for States Participating in Financial Alignment Model Demonstrations for Dually Eligible Individuals $21,789
16.U02 Orange County Drug Enforcement Task Force $19,506
45.024 Promotion of the Arts_grants to Organizations and Individuals $19,000
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $13,125
97.106 Securing the Cities Program $11,471
10.555 Covid-19 National School Lunch Program $8,528
93.747 Elder Abuse Prevention Interventions Program $8,099
93.043 Covid-19 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $3,645
93.566 Covid-19 Refugee and Entrant Assistance_state Administered Programs $1,949
93.566 Refugee and Entrant Assistance_state Administered Programs $1,060
16.835 Body Worn Camera Policy and Implementation $463
14.239 Home Investment Partnerships Program $8