Finding Text
Finding No. 2024-004 – Suspension and Debarment
Federal agency: US Treasury
Federal program title: Covid 19 – State and Local Fiscal Recovery Fund
Listing Number: 21.027
Pass-Through Agency: N/A
Award Period: March 3, 2021 through December 31, 2024
Type of Finding: Significant Deficiency in Internal Control and Other Matter
Criteria or Specific Requirement:
The Federal Register 79 FR 75879 states a participant in a covered transaction with an entity at a lower tier must verify that the entity is not suspended or debarred or otherwise excluded from participating in the transactions.
Condition:
During our testing of 6 entities the County entered covered transactions with, we noted the County was not able to provide sufficient evidence of verification for 3 of 6 of the entities before initiating the transactions.
Questioned Costs: None
Context:
We noted this condition in 3 out of 6 vendors tested.
Effect:
Noncompliance could lead to loss of funding.
Cause:
The County was unaware of the specific requirement for the related grant in the prior year, and contracts carried over into current year.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was
2023-004.
Recommendation:
We recommend the County review its policies and procedures to adequately document the verification of entities it enters covered transactions with as not being suspended or debarred.
Views of Responsible Officials:
There is no disagreement with the audit finding.