Audit 35872

Criteria or Specific Requirement Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a passthrough entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. When a non-federal entity enters into a covered transaction with an entity at a lower tier, the nonfederal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended, or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) (Note: The OMB guidance at 2 CFR Part 180 and agency implementing regulations still refer to the SAM Exclusions as the Excluded Parties List System (EPLS)), (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Non-federal entities receiving contracts from the federal government are required to comply with the contract clause at FAR 52.209-6 before entering into a subcontract that will exceed $30,000, other than a subcontract for a commercially available off-the-shelf item. Per CFR 200.318 (b)(1), the non-Federal entity must maintain written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award, and administration of contracts. No employee, officer, or agent may participate in the selection, award, or administration of a contract supported by a federal award if he or she has a real or apparent conflict of interest. Condition Found and Context There was no policy in place to ensure that vendors who were used by Regent with the federal funds received were not suspended or debarred by the federal government. Possible Cause and Effect Management?s review control over its requirements for HEERF was not operating at a level of precision to ensure effective controls are in place for the program. There is an increased risk that Regent could use federal funds with a vendor who is suspended and disbarred by the federal government or selects a contract due to a conflict of interest. Questioned Costs None identified. Sampling Approach The sample was not intended to be, and was not, a statistically valid sample. Identification of Repeat Finding This finding is not a repeat of a finding in the prior year. Recommendation We recommend that Regent review the compliance supplement guidance annually and when funding for new programs is obtained to ensure that all controls required for each program meet the stated standards. Views of Responsible Officials The University concurs with the recommendation. The University has already taken the necessary steps to bring all relevant policies into alignment with 2 CFR 180.220 to ensure full compliance with the suspension and debarment requirements of the policy.

Criteria or Specific Requirement Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a passthrough entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. When a non-federal entity enters into a covered transaction with an entity at a lower tier, the nonfederal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended, or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) (Note: The OMB guidance at 2 CFR Part 180 and agency implementing regulations still refer to the SAM Exclusions as the Excluded Parties List System (EPLS)), (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Non-federal entities receiving contracts from the federal government are required to comply with the contract clause at FAR 52.209-6 before entering into a subcontract that will exceed $30,000, other than a subcontract for a commercially available off-the-shelf item. Per CFR 200.318 (b)(1), the non-Federal entity must maintain written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award, and administration of contracts. No employee, officer, or agent may participate in the selection, award, or administration of a contract supported by a federal award if he or she has a real or apparent conflict of interest. Condition Found and Context There was no policy in place to ensure that vendors who were used by Regent with the federal funds received were not suspended or debarred by the federal government. Possible Cause and Effect Management?s review control over its requirements for HEERF was not operating at a level of precision to ensure effective controls are in place for the program. There is an increased risk that Regent could use federal funds with a vendor who is suspended and disbarred by the federal government or selects a contract due to a conflict of interest. Questioned Costs None identified. Sampling Approach The sample was not intended to be, and was not, a statistically valid sample. Identification of Repeat Finding This finding is not a repeat of a finding in the prior year. Recommendation We recommend that Regent review the compliance supplement guidance annually and when funding for new programs is obtained to ensure that all controls required for each program meet the stated standards. Views of Responsible Officials The University concurs with the recommendation. The University has already taken the necessary steps to bring all relevant policies into alignment with 2 CFR 180.220 to ensure full compliance with the suspension and debarment requirements of the policy.