Finding Text
2022-002 Suspension and Debarment
Federal Agency U.S. Department of Treasury
Federal Program Name
COVID-19 Coronavirus State and Local Fiscal Recovery Effort
Assistance Linsting Number
21.027
Fereal Award Identification Number and Year: Various
Award Period 2022
Pass-through Entity N/A
Questioned Costs None
Types of Finding Material Weakness in Internal Control over Compliance, Other Matters
Criteria or Specific Requirement
2 CFR 200.303, requires that non-federal entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with federal statutes, regulations, and the terms and conditions of the federal award. Effective internal controls should includeproccedures in place too ensure the required certifications for covered contracts and subawards are received, documented, and contracts are not made with a debarred or suspended party.
Condition During our testing of five covered transactions, we noted all vendors tested did not have proper supporting documentation for suspension and debarment procedures for vendors.
Context Procurement was direct and material to the Coronavirus State and Local Fiscal Recovery Effort. As a result, a total of five contractors were subject to the suspension and debarment requirements. The County did not perform the suspension and debarment procedures for any of the contracts subject to the suspension an debarment requirements.
Cause The county has not designed and implemented internal controls to ensure compliance with suspension and debarment requirements outlined.
Effect Federal funding could be spent on organizations that are suspended or disbarred.
Recommendation We recommend the County implement internal control to ensure that suspension and debarment assessment are performed during the procurement and contracting phase. In addition, sufficient documentation should be retained to evidence suspension and debarment is performed.
Repeat Finding No
Views Responsible Officials
There is no disagreement with the audit finding.