FAC Explorer

Finding 51725 (2022-001)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-06-27
Audit: 40786
Organization: Genesee County, Michigan (MI)
Auditor: Plante & Moran PLLC

AI Summary

  • Core Issue: The County lacks a process to verify that contractors are not suspended or debarred before entering contracts using federal funds.
  • Impacted Requirements: This finding relates to compliance with 2 CFR Section 180.300, which mandates verification of contractor eligibility.
  • Recommended Follow-Up: Implement an internal control to ensure verification occurs prior to awarding contracts, and retain documentation of checks performed.

Finding Text

Assistance Listing Number, Federal Agency, and Program Name ALN 21.027, COVID 19 Coronavirus State and Local Fiscal Recovery Fund (CSLFRF) ALN 93.926, Healthy Start Initiative (HSI) Federal Award Identification Number and Year SLT 1765, 2021 (CSLFRF) 17U62MC31100 (HSI) Pass through Entity Not applicable Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding No Criteria The County should ensure there is a process in place, prior to entering contracts with vendors, to verify that such vendors are not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300. Condition We noted during testing that the County had no procedure in place to verify and maintain support for verification that contractors are not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300 prior to entering into contracts with award funds. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable Context From October 1, 2021 through September 30, 2022, the County had two contractors with which the County entered into a contract using Coronavirus State and Local Fiscal Recovery Fund funding and 13 contractors and subrecipeints for Healthy Start Initiative that should have been verified that the vendor was not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300. We selected one contractor for testing, and it lacked verification. However, based upon testing procedures, we noted the contractors were not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300, thereby creating no questioned costs. Cause and Effect The County did not have a control in place to verify that any contractor with which it plans to enter into a contract using Coronavirus State and Local Fiscal Recovery Fund and Healthy Start Initiative funds is not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300. The County could have entered into a contract with vendors that were suspended, debarred or otherwise excluded pursuant to 2 CFR Section 180.300. Upon verifying the contractors were not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300 after the contracts were in place, no questioned costs were present. Recommendation We recommend that an internal control be put in place to ensure the verification of contractors occurs before contractors are awarded Coronavirus State and Local Fiscal Recovery Fund and Healthy Start Initiative funded contracts. Views of Responsible Officials and Corrective Action Plan The County staff checked the suspension and debarment listing, however, did not print the screen for audit documentation. Going forward, the page confirming that the contractor is not on the excluded parties listing will be retained to provide proof that the check was performed.

Corrective Action Plan

Finding Number: 2022-001 Condition: We noted during testing that the County had no procedure in place to verify contractors are not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300 prior to entering into contracts with award funds. Planned Corrective Action: The County staff checked the suspension and debarment listing, however, did not print the screen for audit documentation. Going forward, the page confirming that the contractor is not on the excluded parties listing will be retained to provide proof that the check was performed. Contact person responsible for corrective action: Chrystal Simpson, CFO Anticipated Completion Date: 6/20/2023

Categories

Procurement, Suspension & Debarment Material Weakness

Other Findings in this Audit

  • 51723 2022-002
    Material Weakness
  • 51724 2022-004
    Material Weakness
  • 51726 2022-001
    Material Weakness
  • 51727 2022-001
    Material Weakness
  • 51728 2022-003
    Material Weakness
  • 51729 2022-001
    Material Weakness
  • 51730 2022-002
    Material Weakness
  • 51731 2022-004
    Material Weakness
  • 51732 2022-004
    Material Weakness
  • 51733 2022-004
    Material Weakness
  • 51734 2022-005
    Material Weakness
  • 51735 2022-005
    Material Weakness
  • 51736 2022-005
    Material Weakness
  • 51737 2022-005
    Material Weakness
  • 51738 2022-005
    Material Weakness
  • 51739 2022-005
    Material Weakness
  • 51740 2022-005
    Material Weakness
  • 51741 2022-005
    Material Weakness
  • 51742 2022-005
    Material Weakness
  • 51743 2022-005
    Material Weakness
  • 51744 2022-005
    Material Weakness
  • 51745 2022-005
    Material Weakness
  • 51746 2022-005
    Material Weakness
  • 51747 2022-005
    Material Weakness
  • 51748 2022-005
    Material Weakness
  • 51749 2022-005
    Material Weakness
  • 51750 2022-005
    Material Weakness
  • 51751 2022-005
    Material Weakness
  • 628165 2022-002
    Material Weakness
  • 628166 2022-004
    Material Weakness
  • 628167 2022-001
    Material Weakness
  • 628168 2022-001
    Material Weakness
  • 628169 2022-001
    Material Weakness
  • 628170 2022-003
    Material Weakness
  • 628171 2022-001
    Material Weakness
  • 628172 2022-002
    Material Weakness
  • 628173 2022-004
    Material Weakness
  • 628174 2022-004
    Material Weakness
  • 628175 2022-004
    Material Weakness
  • 628176 2022-005
    Material Weakness
  • 628177 2022-005
    Material Weakness
  • 628178 2022-005
    Material Weakness
  • 628179 2022-005
    Material Weakness
  • 628180 2022-005
    Material Weakness
  • 628181 2022-005
    Material Weakness
  • 628182 2022-005
    Material Weakness
  • 628183 2022-005
    Material Weakness
  • 628184 2022-005
    Material Weakness
  • 628185 2022-005
    Material Weakness
  • 628186 2022-005
    Material Weakness
  • 628187 2022-005
    Material Weakness
  • 628188 2022-005
    Material Weakness
  • 628189 2022-005
    Material Weakness
  • 628190 2022-005
    Material Weakness
  • 628191 2022-005
    Material Weakness
  • 628192 2022-005
    Material Weakness
  • 628193 2022-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $14.29M
21.023 Covid-19 - Emergency Rental Assistance Program $11.66M
14.218 Community Development Block Grants/entitlement Grants $2.18M
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $1.97M
93.563 Child Support Enforcement $1.79M
93.600 Head Start $1.70M
93.268 Covid-19 - Immunization Cooperative Agreements $1.22M
10.569 Emergency Food Assistance Program (food Commodities) $885,146
93.568 Low-Income Home Energy Assistance $827,917
10.565 Commodity Supplemental Food Program $654,406
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $605,871
14.239 Home Investment Partnerships Program $605,006
14.218 Covid-19 - Community Development Block Grants/entitlement Grants $522,021
93.053 Nutrition Services Incentive Program $485,849
10.558 Child and Adult Care Food Program $386,430
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $366,321
93.926 Healthy Start Initiative $335,941
16.588 Violence Against Women Formula Grants $309,999
10.568 Emergency Food Assistance Program (administrative Costs) $270,468
16.575 Crime Victim Assistance $251,793
93.217 Family Planning_services $244,507
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $221,280
14.231 Covid-19 - Emergency Solutions Grant Program $218,615
93.994 Maternal and Child Health Services Block Grant to the States $192,570
16.034 Coronavirus Emergency Supplemental Funding Program $187,908
93.268 Immunization Cooperative Agreements $177,031
97.024 Emergency Food and Shelter National Board Program $169,478
14.231 Emergency Solutions Grant Program $167,100
16.833 National Sexual Assault Kit Initiative $124,293
16.540 Juvenile Justice and Delinquency Prevention_allocation to States $103,127
20.505 Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research $100,548
81.042 Weatherization Assistance for Low-Income Persons $79,978
10.555 National School Lunch Program $78,967
20.205 Highway Planning and Construction $76,163
93.977 Preventive Health Services_sexually Transmitted Diseases Control Grants $67,086
93.940 Hiv Prevention Activities_health Department Based $62,322
93.323 Covid-19 - Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $55,061
21.032 Local Assistance and Tribal Consistency Fund $50,000
93.136 Injury Prevention and Control Research and State and Community Based Programs $48,779
97.042 Emergency Management Performance Grants $44,381
93.889 National Bioterrorism Hospital Preparedness Program $34,113
10.559 Summer Food Service Program for Children $29,402
93.569 Community Services Block Grant $25,000
97.067 Homeland Security Grant Program $24,741
97.012 Boating Safety Financial Assistance $24,700
93.354 Covid-19 - Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $12,405
93.991 Preventive Health and Health Services Block Grant $10,000
16.738 Edward Byrne Memorial Justice Assistance Grant Program $7,211
16.606 State Criminal Alien Assistance Program $5,477
93.778 Medical Assistance Program $5,315
16.825 Smart Prosecution Initiative $3,935
93.558 Temporary Assistance for Needy Families $2,423
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $1,626
93.597 Grants to States for Access and Visitation Programs $620