Finding 624101 (2022-002)

Material Weakness
Requirement
I
Questioned Costs
$1
Year
2022
Accepted
2023-09-10
Audit: 51115
Organization: Oconto County, Wisconsin (WI)

AI Summary

  • Core Issue: The County failed to follow its own procurement policies, leading to noncompliance with federal requirements.
  • Impacted Requirements: Noncompliance with 2 CFR 200, which mandates full and open competition in procurement and proper record-keeping.
  • Recommended Follow-Up: Update procurement policies to meet federal standards and establish a verification process to ensure compliance before vendor transactions.

Finding Text

2022-002 Procurement Federal Agency: U.S. Department of Health and Human Services Federal Program Name: COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Assistance Listing Number: 93.323 Pass-Through Agency: Wisconsin Department of Health Services Pass-Through Number: 155802 Federal Award Identification Number and Year: NU50CK000534 and 2020 Award Period: October 1, 2020 ? October 31, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: 2 CFR 200 requires that all procurement transactions for the acquisition of property or services required under a Federal award must be conducted in a manner providing full and open competition consistent with the standards of this section and ?200.320. The nonFederal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Further, the method of procurement, whether informal or formal, must follow the County's written procurement policy on approval thresholds and controls. Condition: The County did not follow their established controls related to ensuring procurement policies were followed. Questioned Costs: $231,169 Context: While performing compliance procedures, it was noted that the County did not follow their policy to ensure compliance with procurement requirements. Cause: The Human Services department at the County does not have established procedures to verify procurement policies are followed prior to entering into a procurement transaction with a vendor in which federal funds are going to be used. Effect: The County is not in compliance with procurement requirements. Contracts for construction, nonconstruction related procurements, and those over the simplified acquisition threshold may not be in compliance with the Uniform Guidance. Repeat Finding: No Recommendation: We recommend the County review and update procurement policies for the entire County to ensure it meets the minimum requirements of 2 CFR 200 for all federal grants and establish a procurement process in order to ensure this policy is followed. View of Responsible Officials: There is no disagreement with the finding.

Categories

Questioned Costs Procurement, Suspension & Debarment Material Weakness Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 47657 2022-003
    Material Weakness
  • 47658 2022-003
    Material Weakness
  • 47659 2022-002
    Material Weakness
  • 47660 2022-003
    Material Weakness
  • 624099 2022-003
    Material Weakness
  • 624100 2022-003
    Material Weakness
  • 624102 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $610,580
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $297,610
93.778 Medical Assistance Program $293,129
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $142,023
93.667 Social Services Block Grant $116,397
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $100,246
10.912 Environmental Quality Incentives Program $94,638
93.575 Child Care and Development Block Grant $63,589
15.662 Great Lakes Restoration $56,938
97.042 Emergency Management Performance Grants $55,061
84.069 Public Health Emergency Preparedness $51,441
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $47,060
93.268 Immunization Cooperative Agreements $45,214
21.219 Recreational Trails Program $45,000
93.556 Promoting Safe and Stable Families $42,827
66.181 Special Education-Grants for Infants and Families $36,543
15.658 Natural Resource Damage Assessment, Restoration and Implementation $35,270
20.219 Recreational Trails Program $28,100
21.027 Coronavirus State and Local Fiscal Recovery Funds $25,179
93.767 Children's Health Insurance Program $23,509
93.658 Foster Care_title IV-E $21,954
20.469 Great Lakes Program $19,781
93.090 Guardianship Assistance $18,908
21.019 Coronavirus Relief Fund $17,546
93.994 Maternal and Child Health Services Block Grant to the States $13,829
93.958 Block Grants for Community Mental Health Services $13,353
93.959 Block Grants for Prevention and Treatment of Substance Abuse $12,242
93.991 Preventive Health and Health Services Block Grant $6,223
10.561 Special Supplemental Nutrition Program for Women, Infants, and Children $3,758
16.607 Bulletproof Vest Partnership Program $1,958
93.645 Stephanie Tubbs Jones Child Welfare Services Program $1,337
93.659 Adoption Assistance $681
93.558 Temporary Assistance for Needy Families $405
93.563 Child Support Enforcement $-42,590