Finding 614835 (2022-001)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-09-20
Audit: 30345
Organization: Chippewa County (WI)

AI Summary

  • Core Issue: The Authority failed to document vendor verification for suspension and debarment, which is a significant deficiency in internal controls.
  • Impacted Requirements: Procurement standards require a policy to ensure vendors are not suspended or debarred before procurement.
  • Recommended Follow-Up: Implement a policy to maintain documentation for vendor verification to prevent potential compliance issues.

Finding Text

Finding: 2022-001 ? Lack of Proper Review ? Suspension and Debarrment Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: N/A, 2022 Award Period: December 10, 2021-September 30, 2023 Pass-Through Agency: Sawyer County Type of Finding: ? Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Procurement standards requires that there is a policy in place and is expected to be followed to ensure entities are properly procuring goods and services and to ensure vendors and contractors are not suspended or debarred. Condition: During procurement and suspension and debarment testing, it was noted that the Authority could not provide proof of verification that vendor was not suspended or debarred. Questioned costs: None Context: The Authority reviewed the vendor before making payment to verify not suspended or debarred but there was no documentation for auditors to test. Cause: The Authority did not think to maintain documentation of the verification. Effect: Lack of proper documentation of controls over compliance with suspension and debarment requirements could result in paying suspended or debarred vendors. This could ultimately result in questioned costs. Repeat Finding: No Recommendation: We recommend that the Authority implement a policy to maintain supporting documentation for suspension and debarment verification. Views of responsible officials: There is no disagreement with the audit finding.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 38393 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $875,069
10.415 Rural Rental Housing Loans $780,837
14.182 Section 8 New Construction and Substantial Rehabilitation $258,805
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $220,000