Finding 548010 (2024-001)

2024 – 001 – Suspension and Debarment Federal Agency: U.S. Department of Agriculture Federal Program Title: Special Supplemental Nutrition Program for Women, Infants, and Children Assistance Listing Number: 10.557 Pass-Through Agency: California State Department of Public Health Pass-Through Numbers(s): N/A Award Period: July 1, 2023 – June 30, 2024 Type of Finding: • Material Weakness in Internal Control over Compliance Criteria: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Before entering into a covered transaction the entity must verify that the contractor is not suspended, debarred, or otherwise excluded from participating in the transaction. Condition: Through our testing we noted that suspension and debarment checks were not performed for two vendors prior to entering into the transaction. Questioned Costs: None noted. Context: Suspension and debarment procedures were not performed for two of the two vendors selected prior to entering into the transaction. Cause: The County did not follow controls in place for ensuring that vendors are not suspended or debarred. Effect: Without checking debarment before engaging services, the County could have entered into an agreement with a vendor that was debarred from receiving federal funding. Repeat Finding: Not a repeat finding. Recommendation: CLA recommends the County implement procedures to ensure that federal guidance is followed relating to suspension and debarment and provide training on these procedures. Views of responsible officials: There is no disagreement with the audit finding.