Finding 572980 (2023-003)

CRITERIA: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) § 200.205 and Appendix II to § 200 requires the County to determine that contractors, individuals, businesses receiving Federal funds have not been suspended or debarred from receiving Federal funds. CONDITION: The County did not have procedures in place for verifying that recipients of the Coronavirus State and Local Fiscal Recovery Funds were not suspended or debarred from receiving Federal funds before warrants were issued to County businesses, residents or other organizations. CONTEXT: During the performance of our audit procedures, we found that the County did not verify potential recipients of the CSLR Funds to either: 1) the Excluded Parties List System in SAM or 2) received signed affirmation from the recipient that they were not suspended or debarred from receiving Federal funds, before disbursing the funds to the recipients. EFFECT: There is a risk that Federal award program dollars received by the County were disbursed to recipients that were suspended or debarred from receiving Federal funds. CAUSE: The County overlooked this requirement during the administration of the CSLRF program. QUESTIONED COSTS: Unknown. RECOMMENDATION: We recommend that the County establish a procedure that requires all contractors, individuals or other organizations (collectively “vendors”) be vetted by checking the Excluded Parties List System in SAM or obtain written affirmation from the potential vendor that they are not suspended or debarred from receiving Federal funds. The County should document this verfication in the vendors file. VIEW OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS: See the accompanying Corrective Action Plan.