Audit 410865

Finding TypeSignificant DeficiencyFederal ProgramInflation Reduction Act Urban & Community Forestry Program, ALN #10.727CriteriaFor covered transactions, in accordance with the Uniform Guidance, the Organization must annually check their vendors for compliance with suspension and debarment requirements.ConditionThe Organization formally performs and documents its due diligence and approval process for suspension and debarment for all vendors prior to initial engagement and, while the Organization also reviews all active vendors annually, these subsequent annual reviews are not formally documented; therefore, the Organization was unable to furnish physical evidence of the annual review and approval of all vendors under suspension and debarment requirements for the 2025 audit period.CauseThe Organization’s annual review process for suspension and debarment is not formally documented.EffectFailing to follow requirements of the Uniform Guidance regarding suspension and debarment could lead to the Organization working with suspended or debarred vendors.Repeat FindingN/ARecommendationThe Organization should implement procedures to ensure that annual checks for suspension and debarment are being formally documented to verify that the Organization is in compliance with Uniform Guidance and only working with vendors that are not suspended or debarred.ResponseAs noted in the corrective action plan, management agrees with this finding..