Finding 572973 (2024-001)

Federal Agency: U.S. Department of Housing and Urban Development; U.S. Department of Health and Human Services; U.S. Department of Education Federal Program Name: Continuum of Care Program; National Family Caregiver Support, Title III, Part E; Rehab Services Demonstration & Training Program Assistance Listing Number: 14.267; 93.052; 84.235 Federal Award Identification Number and Year: WA0548L0T002200-2024; DA23-1535-2024; H235F200005-2024 Pass-Through Agency: 14.267-King County Regional Homelessness Authority; 93.052-City of Seattle Pass-Through Number(s): WA0548L0T002200-2024; DA23-1535-2024 Award Period: 1/1/2024-12/31/2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: The Federal Government requires that when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: Entity was not able to provide the date the verification check occurring before entering into contract with a vendor/subrecipient. Questioned Costs: None Context: During our testing, we identified instances where there was no documented dates of the verification check occurring before entering into contract with a vendor/subrecipient. Cause: The entity doesn't document the verification check prior to entering into contract with vendor/subrecipient. Effect: The entity is not in compliance with Federal Government requirements. Repeat Finding: No Recommendation: We recommend the entity evaluate its procedures and implement an additional control to document verification checks are occurring prior to entering into contract with a vendor/subrecipient. Views of Responsible Officials: Management agrees with the finding and has developed a plan to correct the finding.