Audit 30563

Suspension and Debarment Finding Number: 2022-003 Assistance Listing Number and Title: AL# 32.009 Emergency Connectivity Fund Program Federal Award Identification Number / Year: 2022 Federal Agency: Federal Communications Commission Compliance Requirement: Section I- Procurement And Suspension And Debarment Pass-Through Entity: Direct Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 CFR 180.305 states that Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred or whose principals are suspended or debarred unless the Federal agency responsible for the transaction grants an exception under 2 CFR ? 180.135. ?Covered transactions? include nonprocurement or procurement transactions at the primary tier, between a Federal agency and a person; or at the lower tier, between a participant in a covered transaction and another person. Procurement contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) are covered transactions if the contracts are expected to equal or exceed $25,000 or meet certain other specified criteria outlined in 2 CFR ? 180.220s. All nonprocurement transactions (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless listed in the exemptions in 2 CFR ? 180.215. When a non-Federal entity enters a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity is not suspended or debarred or otherwise excluded. This verification may be accomplished by checking SAM exclusions (https://sam.gov), collecting a certification from the entity, or adding a clause or condition to the covered transactions with that entity. School District Policy DJF-R-2 - Purchasing Procedures (Procurement - Federal Grants/Funds), provides that the School District shall not subcontract with or award subgrants to any person or company who is debarred or suspended. For contracts over $25,000, the School District shall confirm that the vendor is not debarred or suspended by either checking the federal government?s System for Award Management, which maintains a list of such debarred or suspended vendors at www.sam.gov, collecting a certification from the vendor or adding a clause or condition to the covered transaction with that vendor (2 C.F.R. Part 180 Subpart C). The School District did not have the proper internal controls in place to verify that all entities, with whom the School District had entered into covered transactions, had not been suspended or debarred. During 2022 for the Emergency Connectivity Fund (ECF) Grant, the School District had one instance in which the program made a payment to a vendor of more than $25,000 and there was no evidence the School District checked the SAM exclusions, collected a certification from the entity, or added a clause or condition to the covered transaction with the vendor. Due to the deficient internal control structure, the required verification was not completed. The School District determined the vendor was not suspended or debarred but only after the contract was awarded. Failing to have the appropriate controls in place may result in vendors receiving federal funds that are suspended or debarred. Prior to contracting with vendors that will be paid with federal funds, the School District should verify the vendor is not suspended or debarred by checking the SAM exclusions, collecting a certification from the vendor, or adding a clause or condition to the covered transaction with the vendor.

Suspension and Debarment Finding Number: 2022-003 Assistance Listing Number and Title: AL# 32.009 Emergency Connectivity Fund Program Federal Award Identification Number / Year: 2022 Federal Agency: Federal Communications Commission Compliance Requirement: Section I- Procurement And Suspension And Debarment Pass-Through Entity: Direct Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 CFR 180.305 states that Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred or whose principals are suspended or debarred unless the Federal agency responsible for the transaction grants an exception under 2 CFR ? 180.135. ?Covered transactions? include nonprocurement or procurement transactions at the primary tier, between a Federal agency and a person; or at the lower tier, between a participant in a covered transaction and another person. Procurement contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) are covered transactions if the contracts are expected to equal or exceed $25,000 or meet certain other specified criteria outlined in 2 CFR ? 180.220s. All nonprocurement transactions (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless listed in the exemptions in 2 CFR ? 180.215. When a non-Federal entity enters a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity is not suspended or debarred or otherwise excluded. This verification may be accomplished by checking SAM exclusions (https://sam.gov), collecting a certification from the entity, or adding a clause or condition to the covered transactions with that entity. School District Policy DJF-R-2 - Purchasing Procedures (Procurement - Federal Grants/Funds), provides that the School District shall not subcontract with or award subgrants to any person or company who is debarred or suspended. For contracts over $25,000, the School District shall confirm that the vendor is not debarred or suspended by either checking the federal government?s System for Award Management, which maintains a list of such debarred or suspended vendors at www.sam.gov, collecting a certification from the vendor or adding a clause or condition to the covered transaction with that vendor (2 C.F.R. Part 180 Subpart C). The School District did not have the proper internal controls in place to verify that all entities, with whom the School District had entered into covered transactions, had not been suspended or debarred. During 2022 for the Emergency Connectivity Fund (ECF) Grant, the School District had one instance in which the program made a payment to a vendor of more than $25,000 and there was no evidence the School District checked the SAM exclusions, collected a certification from the entity, or added a clause or condition to the covered transaction with the vendor. Due to the deficient internal control structure, the required verification was not completed. The School District determined the vendor was not suspended or debarred but only after the contract was awarded. Failing to have the appropriate controls in place may result in vendors receiving federal funds that are suspended or debarred. Prior to contracting with vendors that will be paid with federal funds, the School District should verify the vendor is not suspended or debarred by checking the SAM exclusions, collecting a certification from the vendor, or adding a clause or condition to the covered transaction with the vendor.