Finding Text
SUSPENSION AND DEBARMENT (2022-005) Federal Agency: U.S. Department of Transportation Federal Program Name: Highway Planning and Construction (Highway Planning and Construction Cluster) Assistance Listing Number: 20.205 Federal Award Identification Number and Year: 2022-M1, 2022 Pass-Through Agency: Minnesota Department of Transportation Pass-Through Number: 2022-M1 Award Period: Year-Ended December 31, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Standard internal control and compliance procedures suggest that the County should ensure the suspension and debarment language is in the signed contract or if not in the contract, the county retains documentation of the County's search on sam.gov. In addition, 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 ensure that a contractor was not suspended or debarred, and language was not within the contract. Questioned Costs: None. Context: The County entered into a contract for the purchase of seal coat oil, and the contract did not include suspension and debarment self-certification language. The County also did not perform its own search on the sam.gov website. Cause: Management oversight due to familiarity with the contractor. Effect: Federal funds could have been paid to a suspended or debarred contractor. Repeat Finding: Not applicable. Recommendation: We recommend that the County follow its established internal control procedures regardless of familiarity with contractors. Views of responsible officials: There is no disagreement with the audit finding.