Audit 344264

Criteria: In accordance with 2 CFR 200.206(d), non-federal entities are restricted from making contracts with parties that are debarred, suspended, or otherwise excluded from receiving federal awards or participating in federal awards. Condition: During our audit, we noted that the Agency did not review the debarment status of vendors prior to entering into a contract to purchase goods or services with those vendors. During the year ended June 30, 2024, the Agency spent approximately $190,000, with two vendors without performing a check on their debarment status. As part of the audit, we performed a debarment check and noted that neither vendor had been debarred. Cause: The Agency’s internal control system was not designed to incorporate debarment status checks for vendors with which the Agency is spending significant amounts of federal grant funding. Effect: The Agency could enter into a contract with a party that has been debarred, suspended, or otherwise excluded from receiving federal awards or participating in federal awards. Recommendation: We recommend that the Agency adopt an internal control policy that ensures that debarment status is checked prior to contracting with a party for the purchase of goods or services. Management’s response: Licking Valley Community Action Program, Inc. agrees with this finding. The executive director and finance officer will implement a debarment check with vendors with significant amounts of federal grant funding throughout the year to ensure debarment status. This will be added into the Internal Control Policy.

Criteria: In accordance with 2 CFR 200.206(d), non-federal entities are restricted from making contracts with parties that are debarred, suspended, or otherwise excluded from receiving federal awards or participating in federal awards. Condition: During our audit, we noted that the Agency did not review the debarment status of vendors prior to entering into a contract to purchase goods or services with those vendors. During the year ended June 30, 2024, the Agency spent approximately $190,000, with two vendors without performing a check on their debarment status. As part of the audit, we performed a debarment check and noted that neither vendor had been debarred. Cause: The Agency’s internal control system was not designed to incorporate debarment status checks for vendors with which the Agency is spending significant amounts of federal grant funding. Effect: The Agency could enter into a contract with a party that has been debarred, suspended, or otherwise excluded from receiving federal awards or participating in federal awards. Recommendation: We recommend that the Agency adopt an internal control policy that ensures that debarment status is checked prior to contracting with a party for the purchase of goods or services. Management’s response: Licking Valley Community Action Program, Inc. agrees with this finding. The executive director and finance officer will implement a debarment check with vendors with significant amounts of federal grant funding throughout the year to ensure debarment status. This will be added into the Internal Control Policy.