Finding Text
Finding No. 2024-001 Significant Deficiency: Procurement and Suspension and
Debarment - Compliance and Control Finding
ALN 21.027 - Coronavirus State and Local Fiscal Recovery Funds
Federal Agency: US Department of the Treasury
Pass-Through Entity: Johnson County, Kansas
Criteria Or Specific Requirement: The regulations in 2 CFR part 180 restrict awards,
subawards, and contracts with certain parties that are debarred, suspended, or otherwise
excluded from or ineligible for participation in Federal assistance programs or activities.
The regulations in 2 CFR 200.327 also require certain contract language to be included
in all federal contracts as identified in Appendix II to 2 CFR part 200.
Condition: Audit procedures revealed that both contracts tested did not include a
suspension and debarment clause representing that the vendor is not suspended or
debarred, or that the vendor was evaluated for suspension or debarment prior to
allocating federal funds to the contract. Additionally, the contracts did not include all
contract provisions as required by 2 CFR 200.327.
Cause: The vendor did not include a suspension and debarment clause representing that
the vendor is not suspended and debarred, and the District did not evaluate the vendor
for suspension and debarment prior to allocating federal funds to the contract. The
District utilized pre-existing on-call construction services and architectural services
contracts that were competitively bid by Johnson County, Kansas for non-federal
purposes and utilized these contracts for federal purposes without requiring the vendor
to execute contract amendments to incorporate the requirements of 2 CFR 200.327. Effect: Suspension and debarment provisions were not met for both contracts tested;
however, suspension and debarment checks were performed subsequent to contract
performance indicating the vendors were not suspended or debarred. The contract
provisions that were excluded as required by 2 CFR 200.327, could have resulted in the
vendor or the District violating federal laws and regulations identified in the required
contract provisions of 2 CFR 200.327.
Questioned Costs: Not applicable.
Context: Out of two contracts tested, both contracts tested did not include a suspension
and debarment clause representing that the vendor is not suspended or debarred and
that the vendor was not evaluated for suspension and debarment prior to allocating
federal funds to the contract. Both contracts also did not include the contract provisions
required by 2 CFR 200.327.
Identification As A Repeat Finding: This is a not a repeat finding.
Recommendation: We recommend that management include a suspension and
debarment clause in all contracts which may get allocated to federal funding prior to
allocating federal funds to the contract or perform alternative procedures to ensure the
vendor is not suspended or debarred. We recommend that management execute contract
amendments for the federally funded project to ensure that the contract provisions of 2
CFR 200.327 are incorporated into the existing vendor contracts.
Views Of Responsible Officials (Unaudited): Management has since performed the
suspension and debarment check for each vendor for which it used the on-call services
contracts available. Additionally, management will include an addendum in future
contracts to ensure vendor compliance with the federal contract regulations.
Anticipated Completion Date: May 2025
Contact Person: Noelle Lewis, CFO