Finding 481041 (2023-004)

Federal Agency: Department of Transportation Federal Program Name: Highway Planning and Construction Assistance Listing Number: 20.205 Federal Award Identification Number and Year: 050-646-006, 2023 Pass-Through Agency: Minnesota Department of Transportation Pass-Through Number: SAP 050-646-006 Compliance Requirement Affected: Suspension and Debarment Award Period: Year Ended December 31, 2023 Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matters Criteria or Specific Requirement: Proper records should be retained to support compliance with suspension and debarment requirements. Condition: The standard contract language was not used in the quote process, and there is no other evidence the county ensured the vendor was not suspended or debarred before contracting. Questioned Costs: None. Context: Suspension and debarment requirements were not followed during the contract award process. Cause: At time of procurement, it was not known the costs would be funded with federal dollars. Effect: County could be using a vendor that is suspended or debarred at the time of the transaction. Repeat Finding: Not applicable. Recommendation: We recommend the county align their county-wide policies to address any necessary modifications to the process if procurement transactions are federally funded. View of Responsible Officials: Management concurs with this finding.