Finding Text
Department of Treasury
Pass-through County of Warren, Kentucky; Coronavirus State and Local Fiscal Recovery Funds (LSFRF) - Assistance Listing No. 21.027; Grant period - Year ended December 31, 2023
Criteria and Condition: 2 CFR 200.303 requires the non-federal entity to establish and maintain effective internal controls over compliance with Federal statues, regulations, and the terms and conditions of the Federal award. Non-federal entities are prohibited from contract with our making subawards under covered transactions to parties that are suspended or debarred.
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.
The District's processes over procurement, suspension, and debarment could be enhanced as costs were charged to the Coronavirus State and Local Fiscal Recovery Funds grant that were paid to vendors that had not been checked for suspension or debarment.
Cause: Certain internal controls were not in place to properly detect if vendors had been suspended or debarred.
Effect: The cost of the assistance may be disallowed.
Questioned Costs: N/A
Context: Two vendors were tested that were awared contracts for goods or services and charged to the Coronavirus State and Local Fiscal Recovery Funds grant. The test found the vendors had not been checked for suspension or debarment.
Recommendation: The District should enhance the review of vendors for suspension or debarment.
Views of Responsible Officials and Planned Correct Actions: The District concurs with the finding, see corrective action plan