Audit 408025

2025-001 U.S. Department Education, Assistance Listing #84.027-84.173 Special Education Cluster for the period July 1, 2024, through June 30, 2025 Criteria: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended, debarred, or otherwise excluded from participating in the transaction. In addition, under the requirements of fiscal management, grant recipients are required to design and implement internal controls to ensure compliance with grant requirements and their own policies and procedures. Condition: The Town contracted with companies for special education services and did not document that the companies were not suspended or debarred. Cause: Although the Town has procurement standards that refer to the Uniform Guidance requirements, there is nothing in the standards requiring a check for suspension and debarment. In addition, there are no specific procedures to follow related to suspension and debarment. Effect: The Town runs the risk of contracting with parties who have been suspended or debarred, which could result in the loss of federal funding. Known Questioned Costs: Unknown Likely Questioned Costs: Unknown Recommendations: We recommend that the Town implement procedures to check companies with which they contract and document that they are not suspended, debarred, or in some way prohibited from working on Town projects, especially those working on federally funded projects.