Scott County Public Water Supply District #4

Federal Program: U.S. Department of Treasury passed through Scott County Missouri: Coronavirus State and Local Fiscal Recovery Funds (21.027). Criteria: According to 2 CFR 180.220, when a sub-recipient of federal awards uses federal money to acquire goods and services expected to cost more than $25,000, the sub-recipient must determine if the vendor is suspended, debarred, or otherwise excluded from doing business with the federal government. Condition: The District purchased goods in excess of $25,000 that required the District to determine the vendors' status with the federal government. The vendor was, in fact, not an excluded party. The District kept supporting documentation that the determination was made for vendors paid $946,658 of grant funds. However, the District did not keep the supporting documentation that the determination was made for one vendor paid $72,390 of grant funds. Cause: Their consultant who performed the duty retired during the current fiscal year. Effect: The District was at risk of making material payments to a vendor not allowed to do business with the federal government. Questioned Costs: None. Context: Actual expenditures of the program were $1,019,048 during the fiscal year ended September 30, 2025. Repeat Finding: No. Recommendation: We recommend the District verify a vendor's status by checking the System for Award Management (SAM) maintained by the General Services Administration before making purchases expected to exceed $25,000 and to keep supporting documentation of the verification of the vendor's status. Views of Responsible Officials: The District will verify all vendors' status using the System for Award Management (SAM) maintained by the General Services Administration before making purchases expected to exceed $25,000.