Finding 403815 (2023-001)

Significant Deficiency Repeat Finding
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-06-28
Audit: 310732
Organization: County of Wexford, Michigan (MI)

AI Summary

  • Core Issue: The County failed to keep documentation proving that vendors paid over $25,000 with federal funds were not suspended or debarred.
  • Impacted Requirements: This oversight violates federal compliance rules under the Uniform Guidance for federal awards.
  • Recommended Follow-Up: Ensure that the County verifies vendor status and retains proper documentation for all future transactions over $25,000.

Finding Text

2023-001 – Suspension and Debarment (Repeat Comment) Finding Type. Immaterial Noncompliance/Significant Deficiency in Interal Control over Compliance (Procurement, Suspension and Debarment). Program. Coronavirus State and Local Fiscal Recovery Funds (SLFRF); U.S. Department of Treasury; Assistance Listing Number 21.027. Criteria. A recipient of federal awards is required to determine that vendors being paid with federal funds are not suspended or debarred from doing business with the County. Such procedures are required whenever the amount disbursed to a single vendor in a given year is expected to be at least $25,000. Condition. Although the County did indicate that they verified that their vendors over $25,000 were not suspended or debarred, they did not retain documentation of the process. Cause. Management has indicated that it was not aware of the requirement to retain documentation of the check for vendors participating in federal award programs for active exclusions from federal award work. Effect. As a result of this condition, the County did not fully comply with the requirements of the Uniform Guidance. Questioned Costs. No costs have been questioned as a result of this finding inasmuch as no vendors were determined to have been suspended or debarred. Recommendation. We recommend that the County verify that any of their vendors over $25,000 spent with federal funds were not suspended or debarred and that they retain documentation of the procedures performed. View of Responsible Officials. Management agrees with the finding and has prepared a corrective action plan.

Corrective Action Plan

2023-001 – Suspension and Debarment (Repeat Comment) Auditor Description of Condition and Effect: Although the County did indicate that they verified that their vendors over $25,000 were not suspended or debarred, they did not retain documentation of the process. As a result of this condition, the County did not fully comply with the requirements of the Uniform Guidance. Auditor Recommendation: We recommend that the County verify that any of their vendors over $25,000 spent with federal funds were not suspended or debarred and that they retain documentation of the procedures performed. Management Assessment. Management agrees with the finding and has prepared a corrective action plan. Planned Corrective Action. We will retain documentation of all checks of vendors for suspension and debarment Responsible Party. Joe Porterfield, County Administrator Date of Planned Corrective Action. Immediately

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 980257 2023-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.766 Community Facilities Loans and Grants $10.46M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.78M
15.226 Payments in Lieu of Taxes $143,976
10.665 Schools and Roads - Grants to States $112,733
93.563 Child Support Enforcement $45,030
97.012 Boating Safety Financial Assistance $6,570
93.658 Foster Care_title IV-E $5,145