Finding Text
Finding 2022-002 AL No. 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Agency U.S. Department of Treasury Pass-through Agency Not applicable Award Number / Year 1505-0271 Department McHenry County Department of Finance Criteria: The Uniform Guidance require that prior to entering into subawards and contracts with award funds, recipients must verify that such contractors and sub recipients are not suspended, debarred or otherwise excluded pursuant to 31 CFR section 19.300. Condition/Context: During testing, it was noted that the County did not perform this search for two of the four vendors tested. The sample was not statistically valid. Cause: The County did not have procedures in place to perform this search. Questioned Costs: None noted. Effect: The County could do business with a vendor who is suspended or barred. Recommendation: We recommend the County incorporate this search procedure into its procurement policy. Management's Response: Management has reviewed the finding and agrees with the Auditor's notes. The quarterly report to the US Treasury is prepared by our ARPA consultant. As part of the reporting requirements, they do confirm vendors and verify UEIs at SAM.gov but we agree that this process needs to be better defined and documented for all federal awards.