Audit 326621

Finding: Suspension and Debarment Research and Development Cluster Department of State Assistance Listing Number 19.017 Environmental and Scientific Partnership and Programs Award Number: SAQMIP23GR0057 Award Year 2024 Criteria or Specific Requirement: Per 2 CFR 180, all non-federal entities are prohibited from contracting with or making sub-awards under covered transactions with parties that are suspended or debarred or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Condition: Documentation to support compliance with the above requirement was not available in one instance in which the Organization did not check the suspension and debarment via the excluded parties listing (EPLS) prior to entering into the contract. Questioned Costs: None. Context: We tested a sample of 3 of 26 vendors to evaluate compliance with the applicable procurement requirements, including the review of the excluded party list, and noted the above issue related to the Climate Finance Access Network. A non-statistical sampling methodology was used to select the sample. Effect: By not verifying vendors against the excluded party list, the Organization risks contracting with and making payments to a contractor/vendor that has been suspended or debarred in a violation of federal regulations. Cause: The Organization did not have controls in place to perform the suspension and debarment check prior to entering into a covered transaction. Recommendation: We recommend that the Organization update its current policies and procedures to ensure that the "Excluded Parties List" be reviewed prior to awarding a provider contract, purchase order or contract extension, and on an annual basis thereafter. Performance of such reviews should be documented by including supporting documentation in the contract file.

Finding: Suspension and Debarment Research and Development Cluster Department of State Assistance Listing Number 19.017 Environmental and Scientific Partnership and Programs Award Number: SAQMIP23GR0057 Award Year 2024 Criteria or Specific Requirement: Per 2 CFR 180, all non-federal entities are prohibited from contracting with or making sub-awards under covered transactions with parties that are suspended or debarred or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Condition: Documentation to support compliance with the above requirement was not available in one instance in which the Organization did not check the suspension and debarment via the excluded parties listing (EPLS) prior to entering into the contract. Questioned Costs: None. Context: We tested a sample of 3 of 26 vendors to evaluate compliance with the applicable procurement requirements, including the review of the excluded party list, and noted the above issue related to the Climate Finance Access Network. A non-statistical sampling methodology was used to select the sample. Effect: By not verifying vendors against the excluded party list, the Organization risks contracting with and making payments to a contractor/vendor that has been suspended or debarred in a violation of federal regulations. Cause: The Organization did not have controls in place to perform the suspension and debarment check prior to entering into a covered transaction. Recommendation: We recommend that the Organization update its current policies and procedures to ensure that the "Excluded Parties List" be reviewed prior to awarding a provider contract, purchase order or contract extension, and on an annual basis thereafter. Performance of such reviews should be documented by including supporting documentation in the contract file.