Audit 377885

Criteria – Federal regulations require that grantees have controls in place to verify that vendors are not suspended or debarred prior to entering into contracts for goods or services exceeding $25,000. Condition and Context – The Technical Assistance Grants program had one vendor contract totaling $79,079 that was subject to suspension and debarment requirements. There was no evidence that a suspension and debarment check was performed prior to entering into the contract with the vendor. Cause – Lack of sufficient oversight may have led to procurement policies not being followed and suspension and debarment checks not being performed in a consistent manner. Effect – Pipeline Safety Trust (the Trust) could be subject to questioned costs or other sanctions from the funding agency if vendors retained and paid from federal funds are later found to be suspended or debarred. Questioned Costs – Based on our testing, we noted the vendor was not suspended or debarred, so there are no questioned costs to report. Repeat Finding – This is not a repeat finding. Recommendation – Established procurement, suspension and debarment policies and procedures should be enforced requiring suspension and debarment documentation be retained. Views of Responsible Officials – Management agrees with the finding and has prepared corrective action as detailed in its Corrective Action Plan.