Finding Text
Finding No. 2024-004 – Suspension and Debarment
Federal agency: US Treasury
Federal program title: Covid 19 – State and Local Fiscal Recovery Fund
Listing Number: 21.027
Pass-Through Agency: N/A
Award Period: March 3, 2021 through December 31, 2024
Type of Finding: Significant Deficiency in Internal Control and Other Matter
Criteria or Specific Requirement:
The Federal Register 79 FR 75879 states a participant in a covered transaction with an entity at a lower tier must verify that the entity is not suspended or debarred or otherwise excluded from participating in the transactions.
Condition:
During our testing of 5 entities the County entered covered transactions with, we noted the County was not able to provide sufficient evidence of verification of any of the entities before initiating the transactions.
Questioned costs: None
Context:
We noted this condition in 5 out of 5 vendors tested.
Effect:
Noncompliance could lead to loss of funding.
Cause:
The County was unaware of the specific requirement for the related grant.
Repeat Finding:
Finding was not reported in the prior year.
Recommendation:
We recommend the County review its policies and procedures to adequately document the verification of entities it enters covered transactions with as not being suspended or debarred.
Views of responsible officials:
There is no disagreement with the audit finding.