Finding Text
U.S. Department of Treasury
Passed-through the Colorado Department of Local Affairs
FFAL #21.027
COVID 19 – Coronavirus State and Local Fiscal Recovery Funds
Procurement
Material Noncompliance
Material Weakness in Internal Control
Criteria: As a condition of receiving Federal awards, non-Federal entities agree to comply with
laws, regulations, and the provisions of grant agreements and contracts, and to maintain
internal control to provide reasonable assurance of compliance with these requirements.
Prior to entering a covered transaction, a non-federal entity must ensure the vendor was not
suspended, debarred, or otherwise excluded. A contract award must not be made to parties
listed on the governmentwide exclusions in the System for Award Management (SAM), in
accordance with the OMB guidelines at 2 CFR 180. Further, 2 CFR section Appendix II to Part
200, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards states that in
addition to other provisions required by the Federal agency or non-Federal entity, all contracts
made by the non-Federal entity under the Federal award must contain certain provisions, as
applicable. Finally, the procurement method used must be appropriate based on the dollar
amount and conditions specified in 2 CFR section 200.320. The procurement file must contain
evidence that supports the rationale for the method of procurement, selection of the contract
type, basis for contractor selection, and basis of contract price.
Condition: The County was not able to provide evidence that they verified the vendors used in
the program were not suspended, debarred, or otherwise excluded prior to entering the
contract for 2 of 2 vendors tested. The County also failed to provide certain provisions required
by the Uniform Guidance in the contracts with both vendors specifically for the Davis Bacon Act
and the Equal Employment Opportunity provisions.
The County was not able to provide evidence to support the rationale for the method of
procurement, for 1 of 2 vendors testing. This included whether the procurement method was
appropriate, whether it provided for full and open competition, or if a cost/price analysis was
performed.
Cause: Due to the County’s failure to understand the procurement requirements the
procurement files did not contain the required information to support compliance with the
standards.
Effect: Insufficient procedures and internal controls related to procurement resulted in a finding.
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Summit County, Colorado
Schedule of Findings and Questioned Costs
Year Ended December 31, 2023
Questioned Costs: None to report
Context/Sampling: The population consisted of 3 vendors, 2 of which were selected for procurement,
suspension and debarment testing.
Repeat Finding from Prior Year(s): No
Recommendation: We recommend the County modify and strengthen its current policies and
procedures to ensure documentation is retained regarding verification of vendor suspension/debarment,
selection of procurement method in accordance with 2 CFR section 200.320 and that all applicable
required provisions are communicated to contractors in accordance with 2 CFR Appendix II to Part 200.
Views of Responsible Officials: Agree