Audit 347287

2024-001 Verification of Suspension and Debarment (Material Weakness) Federal Agency: Department of Education Pass-through Agency: New Hampshire Department of Education Cluster/Program: Special Education Cluster Assistance Listing Number(s): 84.027/84.027X/84.173/84.173X Passed-through Identification: 20230502 & 20240393 Compliance Requirement: Suspension and Debarment Type of Finding: Internal Control over Compliance – Material Weakness Material Noncompliance Criteria or Specific Requirement: In accordance with 2 CFR 180.300, recipients of federal funds are required to ensure that vendors with signed contract are not suspended or debarred from participating in federal programs before awarding any contract or procurement that exceeds $25,000. This verification must be conducted through the System for Award Management (SAM) or equivalent records. Condition: During review of the District’s procurement process, we noted that the District had a signed contract for behavioral professional services that was paid through federal funds. Upon review of the contract and discussion with the District, the District did not properly verify the vendor was suspended or barred by the federal government. This included no evidence of a clause in the contract, no review of the vendor on SAM.gov, or completion of the verification form by the vendor. Cause: The District's procurement procedures did not include a step to verify the suspension or debarment status of vendors before contract award. Effect: Failure to verify the suspension or debarment status of the vendor could lead to the improper use of federal funds. If the vendor had been suspended or debarred, the District could be subject to disallowance of costs and potential penalties, impacting future federal funding opportunities. Questioned Costs: $48,842.70, which is the total amount paid to the vendor in the fiscal year 2024. Identification as Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the District update its procurement policies to include specific procedures for verifying the suspension and debarment status of all contractors and vendors for federally funded projects. This should be done through the three (3) available options allowed under 2 CFR 180.300. Views of Responsible Officials: Management’s views and corrective action plan is included at the end of this report.

2024-001 Verification of Suspension and Debarment (Material Weakness) Federal Agency: Department of Education Pass-through Agency: New Hampshire Department of Education Cluster/Program: Special Education Cluster Assistance Listing Number(s): 84.027/84.027X/84.173/84.173X Passed-through Identification: 20230502 & 20240393 Compliance Requirement: Suspension and Debarment Type of Finding: Internal Control over Compliance – Material Weakness Material Noncompliance Criteria or Specific Requirement: In accordance with 2 CFR 180.300, recipients of federal funds are required to ensure that vendors with signed contract are not suspended or debarred from participating in federal programs before awarding any contract or procurement that exceeds $25,000. This verification must be conducted through the System for Award Management (SAM) or equivalent records. Condition: During review of the District’s procurement process, we noted that the District had a signed contract for behavioral professional services that was paid through federal funds. Upon review of the contract and discussion with the District, the District did not properly verify the vendor was suspended or barred by the federal government. This included no evidence of a clause in the contract, no review of the vendor on SAM.gov, or completion of the verification form by the vendor. Cause: The District's procurement procedures did not include a step to verify the suspension or debarment status of vendors before contract award. Effect: Failure to verify the suspension or debarment status of the vendor could lead to the improper use of federal funds. If the vendor had been suspended or debarred, the District could be subject to disallowance of costs and potential penalties, impacting future federal funding opportunities. Questioned Costs: $48,842.70, which is the total amount paid to the vendor in the fiscal year 2024. Identification as Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the District update its procurement policies to include specific procedures for verifying the suspension and debarment status of all contractors and vendors for federally funded projects. This should be done through the three (3) available options allowed under 2 CFR 180.300. Views of Responsible Officials: Management’s views and corrective action plan is included at the end of this report.

2024-001 Verification of Suspension and Debarment (Material Weakness) Federal Agency: Department of Education Pass-through Agency: New Hampshire Department of Education Cluster/Program: Special Education Cluster Assistance Listing Number(s): 84.027/84.027X/84.173/84.173X Passed-through Identification: 20230502 & 20240393 Compliance Requirement: Suspension and Debarment Type of Finding: Internal Control over Compliance – Material Weakness Material Noncompliance Criteria or Specific Requirement: In accordance with 2 CFR 180.300, recipients of federal funds are required to ensure that vendors with signed contract are not suspended or debarred from participating in federal programs before awarding any contract or procurement that exceeds $25,000. This verification must be conducted through the System for Award Management (SAM) or equivalent records. Condition: During review of the District’s procurement process, we noted that the District had a signed contract for behavioral professional services that was paid through federal funds. Upon review of the contract and discussion with the District, the District did not properly verify the vendor was suspended or barred by the federal government. This included no evidence of a clause in the contract, no review of the vendor on SAM.gov, or completion of the verification form by the vendor. Cause: The District's procurement procedures did not include a step to verify the suspension or debarment status of vendors before contract award. Effect: Failure to verify the suspension or debarment status of the vendor could lead to the improper use of federal funds. If the vendor had been suspended or debarred, the District could be subject to disallowance of costs and potential penalties, impacting future federal funding opportunities. Questioned Costs: $48,842.70, which is the total amount paid to the vendor in the fiscal year 2024. Identification as Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the District update its procurement policies to include specific procedures for verifying the suspension and debarment status of all contractors and vendors for federally funded projects. This should be done through the three (3) available options allowed under 2 CFR 180.300. Views of Responsible Officials: Management’s views and corrective action plan is included at the end of this report.

2024-001 Verification of Suspension and Debarment (Material Weakness) Federal Agency: Department of Education Pass-through Agency: New Hampshire Department of Education Cluster/Program: Special Education Cluster Assistance Listing Number(s): 84.027/84.027X/84.173/84.173X Passed-through Identification: 20230502 & 20240393 Compliance Requirement: Suspension and Debarment Type of Finding: Internal Control over Compliance – Material Weakness Material Noncompliance Criteria or Specific Requirement: In accordance with 2 CFR 180.300, recipients of federal funds are required to ensure that vendors with signed contract are not suspended or debarred from participating in federal programs before awarding any contract or procurement that exceeds $25,000. This verification must be conducted through the System for Award Management (SAM) or equivalent records. Condition: During review of the District’s procurement process, we noted that the District had a signed contract for behavioral professional services that was paid through federal funds. Upon review of the contract and discussion with the District, the District did not properly verify the vendor was suspended or barred by the federal government. This included no evidence of a clause in the contract, no review of the vendor on SAM.gov, or completion of the verification form by the vendor. Cause: The District's procurement procedures did not include a step to verify the suspension or debarment status of vendors before contract award. Effect: Failure to verify the suspension or debarment status of the vendor could lead to the improper use of federal funds. If the vendor had been suspended or debarred, the District could be subject to disallowance of costs and potential penalties, impacting future federal funding opportunities. Questioned Costs: $48,842.70, which is the total amount paid to the vendor in the fiscal year 2024. Identification as Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the District update its procurement policies to include specific procedures for verifying the suspension and debarment status of all contractors and vendors for federally funded projects. This should be done through the three (3) available options allowed under 2 CFR 180.300. Views of Responsible Officials: Management’s views and corrective action plan is included at the end of this report.