Finding 567010 (2024-003)

Significant Deficiency Repeat Finding
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-06-25
Audit: 359921
Organization: Crow Wing County (MN)

AI Summary

  • Core Issue: The County failed to keep records showing that they checked vendors for suspension or debarment before transactions.
  • Impacted Requirements: This violates the compliance requirement under Uniform Guidance 2 CFR 180.300.
  • Recommended Follow-up: Ensure all departments adhere to policies on vendor checks to prevent using suspended or debarred vendors.

Finding Text

Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP2889, 2024 Compliance Requirement Affected: Suspension and Debarment Award Period: Year Ended December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: According to Uniform Guidance 2 CFR 180.300, the County must check for federally suspended or debarred vendors prior to entering a covered transaction. Condition: The County did not retain documentation for the date that the verification was completed. Questioned Costs: Unknown. Context: For one of five transactions tested for suspension and debarment, the County did not retain documentation that the verification was completed. Cause: Lack of oversight by management. Effect: County could be using a vendor that is suspended or debarred at the time of the transaction. Repeat Finding: Prior year finding identified as Finding 2023-007. Recommendation: We recommend the County ensure all departments follow their county-wide policies regarding suspension and debarment requirements. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

SUSPENSION AND DEBAREMENT – COVID-19 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS Recommendation: It is recommended the County ensure all departments follow their county-wide policies regarding suspension and debarment requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will ensure all departments follow federal requirements for purchases to ensure vendors are not suspended or debarred. Name of the contact person responsible for corrective action plan: Nancy Malecha, Finance Director Planned completion date for corrective action plan: December 31, 2025

Categories

Procurement, Suspension & Debarment Internal Control / Segregation of Duties Significant Deficiency

Other Findings in this Audit

  • 567011 2024-004
    Significant Deficiency Repeat
  • 567012 2024-002
    Significant Deficiency
  • 567013 2024-002
    Significant Deficiency
  • 1143452 2024-003
    Significant Deficiency Repeat
  • 1143453 2024-004
    Significant Deficiency Repeat
  • 1143454 2024-002
    Significant Deficiency
  • 1143455 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.02M
20.205 Highway Planning and Construction $1.51M
93.558 Temporary Assistance for Needy Families $642,053
93.658 Foster Care Title IV-E $572,567
97.067 Homeland Security Grant Program $377,477
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $375,167
93.667 Social Services Block Grant $349,536
93.563 Child Support Services $297,925
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $162,098
93.268 Immunization Cooperative Agreements $94,164
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $80,800
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $74,474
16.575 Crime Victim Assistance $68,722
93.967 Centers for Disease Control and Prevention Collaboration with Academia to Strengthen Public Health $67,217
93.994 Maternal and Child Health Services Block Grant to the States $66,203
93.959 Block Grants for Prevention and Treatment of Substance Abuse $59,730
93.069 Public Health Emergency Preparedness $48,051
93.590 Community-Based Child Abuse Prevention Grants $39,379
93.575 Child Care and Development Block Grant $38,951
93.778 Medical Assistance Program $33,698
97.012 Boating Safety Financial Assistance $21,127
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $18,298
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $16,817
93.556 Marylee Allen Promoting Safe and Stable Families Program $9,209
16.607 Bulletproof Vest Partnership Program $8,526
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $6,289
93.645 Stephanie Tubbs Jones Child Welfare Services Program $3,939
93.767 Children's Health Insurance Program $1,356
16.710 Public Safety Partnership and Community Policing Grants $1,164