Audit 377274

Condition and Criteria: The District was unable to provide documentation demonstrating a vendor paid with Federal funds was reviewed for suspension and debarment prior to payment as required by 2CFR 200. Cause: The District does not have sufficient internal controls in place to ensure that vendors are consistently reviewed for suspension and debarment and that evidence of such review is documanted and retained. Effect: Failure to verify and document vendor eligibility increases the risk that Federal funds could be expended on suspended or debared vendors which could result in questioned costs, repayment of Federal funds, or other sanctions from the grantor. Recommendation: We recommend the District implement procedures to ensure all vendors paid with Federal awards are reviewed for suspension and debarment prior to payment. The District should also retain evidence this review occured to demonstrate compliance with Federal requirements. Management Response: The District will strengthen its procedures to ensure all vendors paid with Federal awards are reviewed for suspension and debarment prior to payment and that evidence of the review is documented and maintained.