FAC Explorer

Finding 980660 (2023-003)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-06-28
Audit: 310975
Organization: Genesee County, Michigan (MI)
Auditor: Plante & Moran PLLC

AI Summary

  • Core Issue: The County lacked a process to verify that contractors were not suspended or debarred before entering contracts using CSLFRF funds.
  • Impacted Requirements: This finding represents a material weakness and noncompliance with 2 CFR Section 180.300, and it is a repeat finding from the previous year.
  • Recommended Follow-up: Implement a control to verify contractor status before awarding contracts, ensuring documentation is maintained for audit purposes.

Finding Text

2023 003 Assistance Listing, Federal Agency, and Program Name ALN 21.027, COVID 19 Coronavirus State and Local Fiscal Recovery Fund (CSLFRF) Federal Award Identification Number and Year SLT 1765, 2021, SLFRP0127, 2023, and 38 6004849, 2023 Pass through Entity Michigan Department of Natural Resources and State Court Administrative Office Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding Yes 2022 001 Criteria The County should ensure there is a process in place, prior to entering contracts with vendors, to verify that such vendors are not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300. Condition We noted during testing that the County had no procedures in place to verify and maintain support for verification that contractors are not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300 prior to entering into contracts with CSLFRF funds. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable Context From October 1, 2022 through September 30, 2023, the County had 12 conractors with which the County had active contracts using Coronavirus State and Local Fiscal Recovery Fund funding that should have been verified to ensure tha they were not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300. We selected two new contracts entered into during the current year for testing, and both lacked verification, contract clause or certification from contractor. However, once Plante Moran identified this issue, the County performed procedures to ensure contractors were not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300, and Plante Moran audited those results, thereby creating no questioned costs. Cause and Effect The County did not have a control in place to verify that any contractor with which it plans to enter into a contract using Coronavirus State and Local Fiscal Recovery Fund is not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300. The County could have entered into a contract with vendors that were suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300. Upon verifying the contractors were not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300 after the contracts were in place, no questioned costs were present. Reference Number Finding Recommendation We recommend that an internal control be put in place to ensure the verification of contractors occurs before contractors are awarded Coronavirus State and Local Fiscal Recovery Fund contracts. Views of Responsible Officials and Planned Corrective Actions During fiscal year 2022, the County staff checked the suspension and debarment listing but did not print the screen for audit documentation. This finding was identified last year when the County had already had some time pass during fiscal year 2023. A procedure was put in place at the point that contracts are submitted to the Board of Commissioners for approval to print the documentation and attach it that shows the contractor is not included on the suspended and debarred listing.

Categories

Procurement, Suspension & Debarment Material Weakness

Other Findings in this Audit

  • 404210 2023-001
    Material Weakness
  • 404211 2023-001
    Material Weakness
  • 404212 2023-001
    Material Weakness
  • 404213 2023-001
    Significant Deficiency
  • 404214 2023-002
    Significant Deficiency
  • 404215 2023-002
    Significant Deficiency
  • 404216 2023-002
    Significant Deficiency
  • 404217 2023-003
    Material Weakness Repeat
  • 404218 2023-003
    Material Weakness Repeat
  • 404219 2023-003
    Material Weakness Repeat
  • 980652 2023-001
    Material Weakness
  • 980653 2023-001
    Material Weakness
  • 980654 2023-001
    Material Weakness
  • 980655 2023-001
    Significant Deficiency
  • 980656 2023-002
    Significant Deficiency
  • 980657 2023-002
    Significant Deficiency
  • 980658 2023-002
    Significant Deficiency
  • 980659 2023-003
    Material Weakness Repeat
  • 980661 2023-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.023 Covid-19 - Emergency Rental Assistance Program $7.15M
10.569 Emergency Food Assistance Program (food Commodities) $2.59M
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $2.10M
93.563 Child Support Enforcement $1.71M
93.569 Community Services Block Grant $1.17M
93.568 Low-Income Home Energy Assistance $1.14M
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $1.09M
10.565 Commodity Supplemental Food Program $1.03M
93.323 Covid-19 - Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $902,236
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $671,959
14.231 Covid-19 - Emergency Solutions Grant Program $666,218
14.239 Home Investment Partnerships Program $597,425
93.926 Healthy Start Initiative $493,308
93.053 Nutrition Services Incentive Program $484,633
10.558 Child and Adult Care Food Program $439,271
81.042 Weatherization Assistance for Low-Income Persons $356,884
93.268 Covid-19 - Immunization Cooperative Agreements $313,687
16.575 Crime Victim Assistance $273,466
16.588 Violence Against Women Formula Grants $269,749
16.753 Congressionally Recommended Awards $263,033
14.218 Covid-19 - Community Development Block Grants/entitlement Grants $257,721
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $247,408
10.568 Emergency Food Assistance Program (administrative Costs) $211,728
16.540 Juvenile Justice and Delinquency Prevention_allocation to States $201,544
93.268 Immunization Cooperative Agreements $177,031
93.658 Foster Care_title IV-E $153,071
16.738 Edward Byrne Memorial Justice Assistance Grant Program $149,890
93.994 Maternal and Child Health Services Block Grant to the States $148,722
14.231 Emergency Solutions Grant Program $147,142
93.600 Head Start $128,205
16.833 National Sexual Assault Kit Initiative $112,018
16.585 Drug Court Discretionary Grant Program $105,346
20.505 Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research $103,011
93.889 National Bioterrorism Hospital Preparedness Program $91,274
17.268 H-1b Job Training Grants $74,419
10.555 National School Lunch Program $64,137
93.940 Hiv Prevention Activities_health Department Based $62,322
97.024 Emergency Food and Shelter National Board Program $61,664
93.136 Injury Prevention and Control Research and State and Community Based Programs $56,891
93.217 Family Planning_services $54,263
21.032 Local Assistance and Tribal Consistency Fund $50,000
93.069 Public Health Emergency Preparedness $36,815
97.042 Emergency Management Performance Grants $36,412
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $32,308
93.558 Temporary Assistance for Needy Families $27,814
14.218 Community Development Block Grants/entitlement Grants $26,420
97.067 Homeland Security Grant Program $25,174
97.012 Boating Safety Financial Assistance $24,700
93.354 Covid-19 - Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $24,064
45.025 Promotion of the Arts_partnership Agreements $20,000
16.606 State Criminal Alien Assistance Program $16,451
16.034 Covid-19 - Coronavirus Emergency Supplemental Funding Program $14,382
93.597 Grants to States for Access and Visitation Programs $14,155
66.468 Capitalization Grants for Drinking Water State Revolving Funds $13,625
10.559 Summer Food Service Program for Children $8,652
93.778 Medical Assistance Program $4,555
20.205 Highway Planning and Construction $927