FAC Explorer

Finding 51073 (2022-003)

Significant Deficiency
Requirement
I
Questioned Costs
$1
Year
2022
Accepted
2023-06-04
Audit: 49837
Organization: Blue Earth County (MN)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: Lack of documentation for procurement processes led to significant deficiencies in internal controls over compliance.
  • Impacted Requirements: Non-compliance with federal procurement standards as outlined in 2 CFR sections 200.318-326.
  • Recommended Follow-Up: Implement a robust internal control system to ensure adherence to federal procurement requirements.

Finding Text

2022-003 Procurement Federal Agency: U.S. Department of Agriculture Federal Program Name: State Administrative Matching Grants for the Supplemental Nutrition Assistance Program Assistance Listing Number: 10.561 Federal Award Identification Number and Year: 22MN101S2514 - 202 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 22MN101S2514, 22MN127Q7503, 22MN101S2520 Award Period: January 1, 2022 through December 31, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: Title 2 U.S. Code of Federal Regulations ? 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Non-federal entities other than states must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Condition/Context: For 1 of 2 vendors tested, no documentation was maintained to support the method of procurement, selection of contract type, contractor selection or rejection, or the basis for the contract price. The sample was a statistically valid sample. Questioned costs: $111,837 was paid to the vendor during 2022. Cause: County federal procurement policies were not followed. Effect: The failure to establish an effective internal control system enabled noncompliance to go undetected. Noncompliance with the grant agreement or the compliance requirement could result in the loss of federal funds to the County. Repeat Finding: No Recommendation: We recommend County management establish a system of internal controls to ensure compliance with federal procurement requirements. Views of responsible officials: There is no disagreement with the audit finding.

Categories

Questioned Costs Matching / Level of Effort / Earmarking Procurement, Suspension & Debarment Significant Deficiency

Other Findings in this Audit

  • 51065 2022-002
    Significant Deficiency
  • 51066 2022-002
    Significant Deficiency
  • 51067 2022-002
    Significant Deficiency
  • 51068 2022-002
    Significant Deficiency
  • 51069 2022-003
    Significant Deficiency
  • 51070 2022-002
    Significant Deficiency
  • 51071 2022-003
    Significant Deficiency
  • 51072 2022-002
    Significant Deficiency
  • 627507 2022-002
    Significant Deficiency
  • 627508 2022-002
    Significant Deficiency
  • 627509 2022-002
    Significant Deficiency
  • 627510 2022-002
    Significant Deficiency
  • 627511 2022-003
    Significant Deficiency
  • 627512 2022-002
    Significant Deficiency
  • 627513 2022-003
    Significant Deficiency
  • 627514 2022-002
    Significant Deficiency
  • 627515 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.563 Child Support Enforcement $1.03M
21.027 Coronavirus State and Local Fiscal Recovery Funds $845,229
93.558 Temporary Assistance for Needy Families $771,789
93.658 Foster Care_title IV-E $414,462
93.667 Social Services Block Grant $373,233
20.205 Highway Planning and Construction $358,688
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $315,715
97.039 Hazard Mitigation Grant $142,978
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $76,158
14.267 Continuum of Care Program $73,895
93.994 Maternal and Child Health Services Block Grant to the States $61,676
93.268 Immunization Cooperative Agreements $59,164
93.575 Child Care and Development Block Grant $51,366
21.032 Local Assistance and Tribal Consistency Fund $50,000
93.069 Public Health Emergency Preparedness $44,527
93.778 Medical Assistance Program $38,565
97.042 Emergency Management Performance Grants $37,295
93.590 Community-Based Child Abuse Prevention Grants $35,994
16.922 Equitable Sharing Program $30,682
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $23,254
90.404 2018 Hava Election Security Grants $20,595
20.616 National Priority Safety Programs $14,831
93.669 Child Abuse and Neglect State Grants $10,923
16.606 State Criminal Alien Assistance Program $9,559
93.645 Stephanie Tubbs Jones Child Welfare Services Program $8,963
93.556 Promoting Safe and Stable Families $7,691
20.600 State and Community Highway Safety $6,974
97.012 Boating Safety Financial Assistance $6,603
16.738 Edward Byrne Memorial Justice Assistance Grant Program $6,042
16.607 Bulletproof Vest Partnership Program $4,499
93.767 Children's Health Insurance Program $3,965
93.566 Refugee and Entrant Assistance_state Administered Programs $1,298
10.572 Wic Farmers' Market Nutrition Program (fmnp) $897
93.251 Early Hearing Detection and Intervention $825
93.959 Block Grants for Prevention and Treatment of Substance Abuse $350
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $334