FAC Explorer

Finding 8381 (2023-003)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-01-12
Audit: 11283
Organization: Mecklenburg County (NC)
Auditor: Cherry Bekaert LLP

AI Summary

  • Core Issue: The County failed to follow proper procurement procedures for one out of 11 contracts, violating federal guidelines.
  • Impacted Requirements: Section 200.318 of the Uniform Grant Guidance mandates documented procurement procedures for federal and State awards.
  • Recommended Follow-Up: Ensure all County contracts comply with procurement standards, especially when using existing vendor contracts for federal or State grants.

Finding Text

U.S. Department of Treasury Program Name: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number: 21.027 Significant Deficiency, Nonmaterial Noncompliance - Procurement Finding 2023-003 Criteria or Specific Requirement: Per Section 200.318 of the Uniform Grant Guidance, a non-federal entity must use documented procurement procedures for the acquisition of services required under a federal or State award. Condition: There was one instance out of 11 contracts tested where the County did not properly follow the Uniform Grant Guidance procurement standards for contracted services. Questioned Costs: None. Effect: By not having the required documentation in the files, the County could have improperly contracted with a vendor that was not considered eligible to be paid with grant proceeds. Cause: The County utilized an existing vendor contract that had not been previously procured in accordance with the Uniform Grant Guidance procurement standards. Recommendation: The County should consider utilizing the Uniform Grant Guidance procurement standards for all County contracts or at least ensure that when utilizing a previously issued contract, the necessary procurement standards are met or completed prior to utilizing the vendors contract for a federal or State grant. Views of Responsible Officials: Management agrees with the finding and is implementing procedures to correct this which is further discussed in the Corrective Action Plan. Corrective Action Plan: See Corrective Action Plan prepared by the County.

Corrective Action Plan

U.S. Department of Treasury Program Name: Coronavirus state and local fiscal recovery fund Federal Assistance Listing Number: 21.027 Significant Deficiency, Nonmaterial Noncompliance - Procurement Finding 2023-003 Criteria or specific requirement: Per Section 200.318 of the Uniform Grant Guidance, a non-federal entity must use documented procurement procedures for the acquisition of services required under a Federal or State award. Condition: There was one instance out of 11 contracts tested where the County did not properly follow the Uniform Grant Guidance procurement standards for contracted services. Questioned Costs: None. Effect: By not having the required documentation in the files, the County could have improperly contracted with a vendor that was not considered eligible to be paid with grant proceeds. Cause: The County utilized an existing vendor contract that had not been previously procured in accordance with the Uniform Grant Guidance procurement standards. Recommendation: The County should consider utilizing the Uniform Grant Guidance procurement standards for all County contracts or at least ensure that when utilizing a previously issued contract, the necessary procurement standards are met or completed prior to utilizing the vendors contract for a Federal or State grant. Views of responsible officials: Management agrees with the finding and is implementing procedures to correct this which is further discussed in the corrective action plan. Corrective Action Plan: Procurement will incorporate the completion of a checklist entitled “Subaward versus Contractor Checklist” created by UNC School of Government to determine a vendor’s status as Contractor or Subrecipient. The form, its use and requirements will be included in Procurement’s Process and Procedure manual and all staff training. This checklist will be required as a supporting document for each appropriate procurement/contract record upon approval by a Procurement Manager. Person responsible: David Boyd, Chief Financial Officer Estimated date of completion: February 28, 2024 David Boyd Chief Financial Officer 1/10/2024

Categories

Procurement, Suspension & Debarment Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 8376 2023-002
    Material Weakness Repeat
  • 8377 2023-002
    Material Weakness Repeat
  • 8378 2023-002
    Material Weakness Repeat
  • 8379 2023-002
    Material Weakness Repeat
  • 8380 2023-002
    Material Weakness Repeat
  • 8382 2023-003
    Significant Deficiency
  • 8383 2023-004
    Material Weakness
  • 8384 2023-004
    Material Weakness
  • 8385 2023-004
    Material Weakness
  • 8386 2023-004
    Material Weakness
  • 8387 2023-004
    Material Weakness
  • 8388 2023-004
    Material Weakness
  • 8389 2023-004
    Material Weakness
  • 8390 2023-004
    Material Weakness
  • 8391 2023-004
    Material Weakness
  • 8392 2023-004
    Material Weakness
  • 8393 2023-005
    Significant Deficiency
  • 8394 2023-005
    Significant Deficiency
  • 8395 2023-005
    Significant Deficiency
  • 8396 2023-005
    Significant Deficiency
  • 8397 2023-005
    Significant Deficiency
  • 8398 2023-005
    Significant Deficiency
  • 8399 2023-005
    Significant Deficiency
  • 584818 2023-002
    Material Weakness Repeat
  • 584819 2023-002
    Material Weakness Repeat
  • 584820 2023-002
    Material Weakness Repeat
  • 584821 2023-002
    Material Weakness Repeat
  • 584822 2023-002
    Material Weakness Repeat
  • 584823 2023-003
    Significant Deficiency
  • 584824 2023-003
    Significant Deficiency
  • 584825 2023-004
    Material Weakness
  • 584826 2023-004
    Material Weakness
  • 584827 2023-004
    Material Weakness
  • 584828 2023-004
    Material Weakness
  • 584829 2023-004
    Material Weakness
  • 584830 2023-004
    Material Weakness
  • 584831 2023-004
    Material Weakness
  • 584832 2023-004
    Material Weakness
  • 584833 2023-004
    Material Weakness
  • 584834 2023-004
    Material Weakness
  • 584835 2023-005
    Significant Deficiency
  • 584836 2023-005
    Significant Deficiency
  • 584837 2023-005
    Significant Deficiency
  • 584838 2023-005
    Significant Deficiency
  • 584839 2023-005
    Significant Deficiency
  • 584840 2023-005
    Significant Deficiency
  • 584841 2023-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $12.85M
93.563 Child Support Enforcement $7.91M
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $5.15M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $4.10M
93.659 Adoption Assistance $3.89M
21.023 Emergency Rental Assistance Program $2.99M
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $2.78M
93.137 Community Programs to Improve Minority Health Grant Program $2.11M
20.507 Federal Transit_formula Grants $1.86M
93.940 Hiv Prevention Activities_health Department Based $1.48M
93.499 Low Income Household Water Assistance Program $1.42M
93.686 Ending the Hiv Epidemic: A Plan for America — Ryan White Hiv/aids Program Parts A and B (b) $1.39M
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $865,611
93.767 Children's Health Insurance Program $799,638
14.218 Community Development Block Grants/entitlement Grants $782,578
93.268 Immunization Cooperative Agreements $759,934
93.994 Maternal and Child Health Services Block Grant to the States $705,791
93.667 Social Services Block Grant $657,165
66.001 Air Pollution Control Program Support $591,417
93.568 Low-Income Home Energy Assistance $586,746
84.181 Special Education-Grants for Infants and Families $557,953
93.914 Hiv Emergency Relief Project Grants $465,004
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $434,981
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $349,627
93.217 Family Planning_services $332,612
93.053 Nutrition Services Incentive Program $295,980
93.967 Cdc's Collaboration with Academia to Strengthen Public Health $261,473
21.027 Coronavirus State and Local Fiscal Recovery Funds $252,004
66.034 Surveys, Studies, Research, Investigations, Demonstrations, and Special Purpose Activities Relating to the Clean Air Act $210,247
93.747 Elder Abuse Prevention Interventions Program $208,163
97.039 Hazard Mitigation Grant $202,772
16.021 Justice Systems Response to Families $202,496
93.136 Injury Prevention and Control Research and State and Community Based Programs $183,442
93.566 Refugee and Entrant Assistance_state Administered Programs $175,356
66.039 National Clean Diesel Emissions Reduction Program $145,143
20.205 Highway Planning and Construction $136,132
16.736 Transitional Housing Assistance for Victims of Domestic Violence, Dating Violence, Stalking, Or Sexual Assault $131,118
93.556 Promoting Safe and Stable Families $129,344
93.052 National Family Caregiver Support, Title Iii, Part E $117,633
93.977 Preventive Health Services_sexually Transmitted Diseases Control Grants $107,984
93.069 Public Health Emergency Preparedness $104,000
16.606 State Criminal Alien Assistance Program $103,563
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $97,776
93.558 Temporary Assistance for Needy Families $95,325
17.289 Community Project Funding $84,707
16.745 Criminal and Juvenile Justice and Mental Health Collaboration Program $83,158
93.387 National and State Tobacco Control Program (b) $74,092
16.738 Edward Byrne Memorial Justice Assistance Grant Program $68,604
93.917 Hiv Care Formula Grants $64,231
14.267 Continuum of Care Program $61,007
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $59,475
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $55,088
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $47,101
16.710 Public Safety Partnership and Community Policing Grants $36,397
93.103 Food and Drug Administration_research $35,999
14.231 Emergency Solutions Grant Program $31,125
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $30,773
93.991 Preventive Health and Health Services Block Grant $30,607
16.838 Comprehensive Opioid Abuse Site-Based Program $19,519
93.658 Foster Care_title IV-E $16,601
93.645 Stephanie Tubbs Jones Child Welfare Services Program $16,449
16.607 Bulletproof Vest Partnership Program $13,895
93.324 State Health Insurance Assistance Program $13,594
97.045 Cooperating Technical Partners $11,442
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $7,719
93.071 Medicare Enrollment Assistance Program $7,584
14.241 Housing Opportunities for Persons with Aids $2,416
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $824
93.778 Medical Assistance Program $-25