FAC Explorer

Finding 637492 (2022-003)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 56545
Organization: County of Orange, California (CA)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: OCPW and CEO departments failed to verify if contractors were suspended or debarred before signing contracts, violating internal control policies.
  • Impacted Requirements: Non-compliance with 2 CFR sections 200.303(a) and 200.214 regarding procurement and suspension/debarment verification.
  • Recommended Follow-up: Ensure OCPW and CEO departments strictly follow procurement procedures for suspension or debarment checks before entering contracts.

Finding Text

Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Financial Assistance Listing Number: 21.027 Federal Grantor: U.S. Department of Treasury Award No. and Year: 2021 Compliance Requirements: Procurement and Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Criteria: 2 CFR section 200.303(a), Internal Controls, states that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Title 2 CFR Section 200.214 of the Uniform Guidance states that the County must comply with 2 CFR part 180, which implements Executive Orders 12549 and 12689. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. The 2022 Compliance Supplement states: Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at https://www.sam.gov/SAM/, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Condition: During our testing of the Orange County Public Works (OCPW) and the County Executive Office?s (CEO) provisions for procurement requirements under the COVID-19 Coronavirus State and Local Fiscal Recovery Funds, we noted the following instances where there was no evidence that the OCPW or CEO departments verified the entity was not suspended or debarred or otherwise excluded from participating in the transaction, prior to entering the contract, in accordance with County policy ? Three (3) of three (3) contracts through the OCPW department selected for testing. ? Two (2) of six (6) contracts through the CEO department selected for testing. Cause: The OCPW, and CEO departments did not follow their policy to verify the information described in the condition prior to entering the transactions. Effect: The County?s control and compliance were not consistently followed, which required verification of suspension or debarment prior to entering the contract. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A nonstatistical sample of three (3) out of eight (8) procurement contracts were sampled from OCPW and six (6) out of fourteen (14) procurement contracts were sampled from the CEO department for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds. The condition above was identified during our testwork of the OCPW and CEO departments? internal controls over procurement and suspension and debarment. Repeat Finding from Prior Years: No. Recommendation: We recommend that the OCPW and CEO departments adhere to their procurement procedures requiring the suspension or debarment verification is performed prior to entering into a covered transaction. Views of Responsible Officials: Management agrees. See separately issued Corrective Action Plan.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring

Other Findings in this Audit

  • 60342 2022-010
    Significant Deficiency
  • 60343 2022-010
    Significant Deficiency
  • 60344 2022-010
    Significant Deficiency
  • 60345 2022-010
    Significant Deficiency
  • 60346 2022-007
    Significant Deficiency
  • 60347 2022-007
    Significant Deficiency
  • 60348 2022-002
    Material Weakness
  • 60349 2022-005
    Significant Deficiency
  • 60350 2022-006
    Significant Deficiency
  • 60351 2022-008
    Significant Deficiency
  • 60352 2022-002
    Material Weakness
  • 60353 2022-005
    Significant Deficiency
  • 60354 2022-006
    Significant Deficiency
  • 60355 2022-008
    Significant Deficiency
  • 60356 2022-002
    Material Weakness
  • 60357 2022-005
    Significant Deficiency
  • 60358 2022-006
    Significant Deficiency
  • 60359 2022-008
    Significant Deficiency
  • 60360 2022-002
    Material Weakness
  • 60361 2022-005
    Significant Deficiency
  • 60362 2022-006
    Significant Deficiency
  • 60363 2022-008
    Significant Deficiency
  • 60364 2022-002
    Material Weakness
  • 60365 2022-005
    Significant Deficiency
  • 60366 2022-006
    Significant Deficiency
  • 60367 2022-008
    Significant Deficiency
  • 60368 2022-011
    Significant Deficiency
  • 60369 2022-011
    Significant Deficiency
  • 60370 2022-011
    Significant Deficiency
  • 60371 2022-011
    Significant Deficiency
  • 60372 2022-011
    Significant Deficiency
  • 60373 2022-011
    Significant Deficiency
  • 60374 2022-011
    Significant Deficiency
  • 60375 2022-011
    Significant Deficiency
  • 60376 2022-011
    Significant Deficiency
  • 60377 2022-011
    Significant Deficiency
  • 60378 2022-011
    Significant Deficiency
  • 60379 2022-011
    Significant Deficiency
  • 60380 2022-011
    Significant Deficiency
  • 60381 2022-004
    Significant Deficiency
  • 60382 2022-005
    Significant Deficiency
  • 60383 2022-004
    Significant Deficiency
  • 60384 2022-005
    Significant Deficiency
  • 60385 2022-004
    Significant Deficiency
  • 60386 2022-005
    Significant Deficiency
  • 60387 2022-004
    Significant Deficiency
  • 60388 2022-005
    Significant Deficiency
  • 60389 2022-004
    Significant Deficiency
  • 60390 2022-005
    Significant Deficiency
  • 60391 2022-012
    Significant Deficiency Repeat
  • 60392 2022-001
    Material Weakness
  • 60393 2022-003
    Significant Deficiency
  • 60394 2022-009
    Significant Deficiency
  • 61004 2022-001
    Material Weakness
  • 61005 2022-003
    Significant Deficiency
  • 61006 2022-009
    Significant Deficiency
  • 61007 2022-001
    Material Weakness
  • 61008 2022-003
    Significant Deficiency
  • 61009 2022-009
    Significant Deficiency
  • 61010 2022-001
    Material Weakness
  • 61011 2022-003
    Significant Deficiency
  • 61012 2022-009
    Significant Deficiency
  • 61013 2022-001
    Material Weakness
  • 61014 2022-003
    Significant Deficiency
  • 61015 2022-009
    Significant Deficiency
  • 61016 2022-001
    Material Weakness
  • 61017 2022-003
    Significant Deficiency
  • 61018 2022-009
    Significant Deficiency
  • 61019 2022-001
    Material Weakness
  • 61020 2022-003
    Significant Deficiency
  • 61021 2022-009
    Significant Deficiency
  • 61022 2022-001
    Material Weakness
  • 61023 2022-003
    Significant Deficiency
  • 61024 2022-009
    Significant Deficiency
  • 61025 2022-001
    Material Weakness
  • 61026 2022-003
    Significant Deficiency
  • 61027 2022-009
    Significant Deficiency
  • 61028 2022-001
    Material Weakness
  • 61029 2022-003
    Significant Deficiency
  • 61030 2022-009
    Significant Deficiency
  • 61031 2022-001
    Material Weakness
  • 61032 2022-003
    Significant Deficiency
  • 61033 2022-009
    Significant Deficiency
  • 61034 2022-001
    Material Weakness
  • 61035 2022-003
    Significant Deficiency
  • 61036 2022-009
    Significant Deficiency
  • 61037 2022-001
    Material Weakness
  • 61038 2022-003
    Significant Deficiency
  • 61039 2022-009
    Significant Deficiency
  • 61040 2022-001
    Material Weakness
  • 61041 2022-003
    Significant Deficiency
  • 61042 2022-009
    Significant Deficiency
  • 61043 2022-001
    Material Weakness
  • 61044 2022-003
    Significant Deficiency
  • 61045 2022-009
    Significant Deficiency
  • 61046 2022-001
    Material Weakness
  • 61047 2022-003
    Significant Deficiency
  • 61048 2022-009
    Significant Deficiency
  • 61049 2022-001
    Material Weakness
  • 61050 2022-003
    Significant Deficiency
  • 61051 2022-009
    Significant Deficiency
  • 636784 2022-010
    Significant Deficiency
  • 636785 2022-010
    Significant Deficiency
  • 636786 2022-010
    Significant Deficiency
  • 636787 2022-010
    Significant Deficiency
  • 636788 2022-007
    Significant Deficiency
  • 636789 2022-007
    Significant Deficiency
  • 636790 2022-002
    Material Weakness
  • 636791 2022-005
    Significant Deficiency
  • 636792 2022-006
    Significant Deficiency
  • 636793 2022-008
    Significant Deficiency
  • 636794 2022-002
    Material Weakness
  • 636795 2022-005
    Significant Deficiency
  • 636796 2022-006
    Significant Deficiency
  • 636797 2022-008
    Significant Deficiency
  • 636798 2022-002
    Material Weakness
  • 636799 2022-005
    Significant Deficiency
  • 636800 2022-006
    Significant Deficiency
  • 636801 2022-008
    Significant Deficiency
  • 636802 2022-002
    Material Weakness
  • 636803 2022-005
    Significant Deficiency
  • 636804 2022-006
    Significant Deficiency
  • 636805 2022-008
    Significant Deficiency
  • 636806 2022-002
    Material Weakness
  • 636807 2022-005
    Significant Deficiency
  • 636808 2022-006
    Significant Deficiency
  • 636809 2022-008
    Significant Deficiency
  • 636810 2022-011
    Significant Deficiency
  • 636811 2022-011
    Significant Deficiency
  • 636812 2022-011
    Significant Deficiency
  • 636813 2022-011
    Significant Deficiency
  • 636814 2022-011
    Significant Deficiency
  • 636815 2022-011
    Significant Deficiency
  • 636816 2022-011
    Significant Deficiency
  • 636817 2022-011
    Significant Deficiency
  • 636818 2022-011
    Significant Deficiency
  • 636819 2022-011
    Significant Deficiency
  • 636820 2022-011
    Significant Deficiency
  • 636821 2022-011
    Significant Deficiency
  • 636822 2022-011
    Significant Deficiency
  • 636823 2022-004
    Significant Deficiency
  • 636824 2022-005
    Significant Deficiency
  • 636825 2022-004
    Significant Deficiency
  • 636826 2022-005
    Significant Deficiency
  • 636827 2022-004
    Significant Deficiency
  • 636828 2022-005
    Significant Deficiency
  • 636829 2022-004
    Significant Deficiency
  • 636830 2022-005
    Significant Deficiency
  • 636831 2022-004
    Significant Deficiency
  • 636832 2022-005
    Significant Deficiency
  • 636833 2022-012
    Significant Deficiency Repeat
  • 636834 2022-001
    Material Weakness
  • 636835 2022-003
    Significant Deficiency
  • 636836 2022-009
    Significant Deficiency
  • 637446 2022-001
    Material Weakness
  • 637447 2022-003
    Significant Deficiency
  • 637448 2022-009
    Significant Deficiency
  • 637449 2022-001
    Material Weakness
  • 637450 2022-003
    Significant Deficiency
  • 637451 2022-009
    Significant Deficiency
  • 637452 2022-001
    Material Weakness
  • 637453 2022-003
    Significant Deficiency
  • 637454 2022-009
    Significant Deficiency
  • 637455 2022-001
    Material Weakness
  • 637456 2022-003
    Significant Deficiency
  • 637457 2022-009
    Significant Deficiency
  • 637458 2022-001
    Material Weakness
  • 637459 2022-003
    Significant Deficiency
  • 637460 2022-009
    Significant Deficiency
  • 637461 2022-001
    Material Weakness
  • 637462 2022-003
    Significant Deficiency
  • 637463 2022-009
    Significant Deficiency
  • 637464 2022-001
    Material Weakness
  • 637465 2022-003
    Significant Deficiency
  • 637466 2022-009
    Significant Deficiency
  • 637467 2022-001
    Material Weakness
  • 637468 2022-003
    Significant Deficiency
  • 637469 2022-009
    Significant Deficiency
  • 637470 2022-001
    Material Weakness
  • 637471 2022-003
    Significant Deficiency
  • 637472 2022-009
    Significant Deficiency
  • 637473 2022-001
    Material Weakness
  • 637474 2022-003
    Significant Deficiency
  • 637475 2022-009
    Significant Deficiency
  • 637476 2022-001
    Material Weakness
  • 637477 2022-003
    Significant Deficiency
  • 637478 2022-009
    Significant Deficiency
  • 637479 2022-001
    Material Weakness
  • 637480 2022-003
    Significant Deficiency
  • 637481 2022-009
    Significant Deficiency
  • 637482 2022-001
    Material Weakness
  • 637483 2022-003
    Significant Deficiency
  • 637484 2022-009
    Significant Deficiency
  • 637485 2022-001
    Material Weakness
  • 637486 2022-003
    Significant Deficiency
  • 637487 2022-009
    Significant Deficiency
  • 637488 2022-001
    Material Weakness
  • 637489 2022-003
    Significant Deficiency
  • 637490 2022-009
    Significant Deficiency
  • 637491 2022-001
    Material Weakness
  • 637493 2022-009
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $176.83M
97.036 Covid-19 Disaster Grants - Public Assistance (presidentially Declared Disasters) $65.96M
12.U01 Santa Ana River Manstem Project - Prado Dam Construction $31.72M
93.658 Foster Care_title IV-E $15.17M
14.231 Covid-19 Emergency Solutions Grant Program $14.22M
20.106 Covid-19 Airport Improvement Program $13.68M
93.778 Medical Assistance Program $11.06M
93.667 Social Services Block Grant $10.76M
21.023 Covid-19 Emergency Rental Assistance Program $9.27M
93.558 Covid-19 Temporary Assistance for Needy Families $7.07M
93.914 Hiv Emergency Relief Project Grants $5.34M
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $4.43M
14.218 Community Development Block Grants/entitlement Grants $3.18M
93.391 Covid-19 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $3.16M
16.034 Covid-19 Coronavirus Emergency Supplemental Funding Program $3.06M
93.268 Covid-19 Immunization Cooperative Agreements $2.75M
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $2.66M
14.879 Mainstream Vouchers $2.55M
93.659 Adoption Assistance $2.54M
20.106 Airport Improvement Program $2.37M
93.069 Public Health Emergency Preparedness $2.16M
93.556 Promoting Safe and Stable Families $2.06M
14.871 Covid-19 Section 8 Housing Choice Vouchers $2.03M
93.563 Child Support Enforcement $2.01M
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $1.98M
93.645 Stephanie Tubbs Jones Child Welfare Services Program $1.83M
93.994 Maternal and Child Health Services Block Grant to the States $1.71M
93.917 Hiv Care Formula Grants $1.52M
16.575 Crime Victim Assistance $1.52M
93.052 National Family Caregiver Support, Title Iii, Part E $1.44M
17.258 Wia Adult Program $1.38M
17.259 Wia Youth Activities $1.27M
93.959 Block Grants for Prevention and Treatment of Substance Abuse $1.26M
14.267 Continuum of Care Program $1.20M
93.354 Covid-19 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $1.11M
17.278 Wia Dislocated Worker Formula Grants $1.06M
93.558 Temporary Assistance for Needy Families $962,270
93.940 Hiv Prevention Activities_health Department Based $808,785
14.241 Housing Opportunities for Persons with Aids $802,305
20.616 National Priority Safety Programs $766,502
17.235 Senior Community Service Employment Program $711,313
93.053 Nutrition Services Incentive Program $704,143
14.218 Covid-19 Community Development Block Grants/entitlement Grants $696,906
93.767 Children's Health Insurance Program $675,694
93.268 Immunization Cooperative Agreements $647,624
93.918 Grants to Provide Outpatient Early Intervention Services with Respect to Hiv Disease $637,807
93.045 Covid -19 Special Programs for the Aging_title Iii, Part C_nutrition Services $620,850
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $612,285
14.231 Emergency Solutions Grant Program $600,721
93.686 Ending the Hiv Epidemic: A Plan for America Ryan White Hiv/aids Program Parts A and B (b) $580,502
93.150 Projects for Assistance in Transition From Homelessness (path) $548,505
97.042 Emergency Management Performance Grants $546,640
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $474,410
16.588 Violence Against Women Formula Grants $472,012
93.889 National Bioterrorism Hospital Preparedness Program $456,148
10.025 Plant and Animal Disease, Pest Control, and Animal Care $426,234
16.922 Equitable Sharing Program $421,604
97.046 Fire Management Assistance Grant $404,807
93.958 Block Grants for Community Mental Health Services $393,257
14.239 Home Investment Partnerships Program $389,952
93.658 Covid-19 Foster Care_title IV-E $317,461
93.052 Covid-19 National Family Caregiver Support, Title Iii, Part E $290,642
14.896 Family Self-Sufficiency Program $277,134
97.042 Covid-19 Emergency Management Performance Grants $240,871
10.555 National School Lunch Program $213,059
93.590 Community-Based Child Abuse Prevention Grants $179,954
93.071 Medicare Enrollment Assistance Program $167,956
16.738 Edward Byrne Memorial Justice Assistance Grant Program $167,556
97.067 Homeland Security Grant Program $163,446
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $158,406
21.016 Equitable Sharing $153,396
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $152,830
93.323 Covid-19 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $142,473
15.226 Payments in Lieu of Taxes $136,486
10.553 School Breakfast Program $134,123
93.324 State Health Insurance Assistance Program $126,967
93.977 Preventive Health Services_sexually Transmitted Diseases Control Grants $118,986
93.042 Special Programs for the Aging_title Vii, Chapter 2_long Term Care Ombudsman Services for Older Individuals $107,917
93.603 Adoption Incentive Payments $100,367
14.879 Covid-19 Mainstream Vouchers $99,730
16.742 Paul Coverdell Forensic Sciences Improvement Grant Program $95,746
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $89,812
20.600 State and Community Highway Safety $87,929
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $86,463
20.205 Highway Planning and Construction $82,356
93.564 Child Support Enforcement Research $71,286
16.838 Comprehensive Opioid Abuse Site-Based Program $69,226
93.042 Covid-19 Special Programs for the Aging_title Vii, Chapter 2_long Term Care Ombudsman Services for Older Individuals $63,978
93.566 Covid-19 Refugee and Entrant Assistance_state Administered Programs $57,518
16.U01 Oc Regional Computer Foresics Laboratory $56,559
93.090 Guardianship Assistance $53,227
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $49,137
97.U01 Tsa: National Explosives Detection Canine Team Program $44,222
93.041 Special Programs for the Aging_title Vii, Chapter 3_programs for Prevention of Elder Abuse, Neglect, and Exploitation $38,863
93.634 Support for Ombudsman and Beneficiary Counseling Programs for States Participating in Financial Alignment Model Demonstrations for Dually Eligible Individuals $36,474
14.239 Covid-19 Home Investment Partnerships Program $35,063
10.665 Schools and Roads - Grants to States $29,617
97.U02 Covid-19 Tsa: Airport Reimbursement for Covid-19 Cleaning & Sanitization Activities $23,391
17.278 Covid-19 Wia Dislocated Worker Formula Grants $20,379
16.U02 Orange County Drug Enforcement Task Force $19,372
95.001 High Intensity Drug Trafficking Areas Program $18,763
93.747 Covid-19 Elder Abuse Prevention Interventions Program $15,914
16.833 National Sexual Assault Kit Initiative $14,704
93.575 Child Care and Development Block Grant $12,113
45.310 Grants to States $10,950
10.555 Covid-19 National School Lunch Program $10,180
16.741 Dna Backlog Reduction Program $9,826
17.277 Workforce Investment Act (wia) National Emergency Grants $7,282
10.553 Covid-19 School Breakfast Program $6,411
93.918 Covid-19 Grants to Provide Outpatient Early Intervention Services with Respect to Hiv Disease $6,040
97.133 Preparing for Emerging Threats and Hazards $5,194
93.044 Covid-19 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $4,038
93.778 Covid-19 Medical Assistance Program $929
97.106 Securing the Cities Program $917
93.566 Refugee and Entrant Assistance_state Administered Programs $707