Finding 484768 (2023-003)

Finding 2023-003: U.S. Department of the Treasury Federal Financial Assistance Listing 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Procurement Suspension and Debarment Type of Finding: Significant Deficiency in Internal Controls over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Per 31 CFR 19.300, prior to enter in subawards and contracts with award funds, recipients must verify that such contractors and subrecipients are not suspended, debarred, or otherwise excluded pursuant to 31 CFR § 19.300. Condition: The County did not review one vendor to determine that it was not suspended, debarred, or otherwise excluded prior to entering into a transaction with them. Cause: Adequate controls are not in place to require verification of suspension or debarment prior to entering into a contract. Effect: The County could enter into a contract with a suspended or debarred vendor. Questioned Costs: None Context / Sampling: We tested 9 of 28 transactions subject to suspension and debarment in the SLFRF program. Repeat Finding from Prior Year: No Recommendation: The County should review all vendors for suspension and debarment. Views of Responsible Officials: Management agrees with the noted finding. Refer to Corrective Action Plan.