Audit 402217

Federal Agency: US Department of Energy Federal Program Name: ARRA State Energy Program Assistance Listing Number: 81.041 Federal Award Identification Number and Year: DE-FOA-0000052 - 2025 Pass-Through Agency: MN Dept. of Commerce Pass-Through Number: CFMS B38838 Award Period: N/A – Revolving Loan Type of Finding: Material Weakness in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. Non-federal entities are prohibited from contracting with or making subawards under covered transactions that are suspended or debarred. Before entering into a covered transaction, the entity must verify that the contractor is not suspended, debarred, or otherwise excluded from participating in the transaction. Condition: 4 of the 5 items selected for testing did not contain formal documentation that SAM.gov was checked prior to funding the related loans. Questioned costs: None noted. Context: 4 of the 5 items selected for testing did not contain formal documentation that SAM.gov was checked prior to funding the related loans. Cause: There was personnel turnover and the check was not completed as a result. Effect: The Authority could have entered into an agreement with a contractor that was suspended or debarred. Although the Port Authority was able to demonstrate that contracts were not entered into with vendors who were suspended or debarred, the absence of documentation performed prior to contract execution presents a risk of noncompliance with applicable procurement regulations. Repeat Finding: No Recommendation: We recommend the Port re-implement its previous controls of using a tracking checklist and retaining documentation of the verification process.