Audit 412204

Finding 2025-001 – Suspension and Debarment – Compliance and Control Finding, Significant Deficiency Federal Award. No. 20.505 Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research Federal Agency: U.S. Department of Transportation Pass-Through Entity: Kansas Department of Transportation; Missouri Department of Transportation Criteria Or Specific Requirement: 2 CFR Part 180 and 2 CFR Part 1200 prohibit non-Federal entities from entering into covered transactions with parties that are suspended or debarred from participation in Federal programs. The Compliance Supplement requires the auditee to verify that vendors receiving covered contracts are not suspended or debarred through review of SAM.gov, obtaining a certification from the vendor, or including appropriate suspension and debarment language in the contract. Condition: During testing of covered vendor contracts, we identified one contract for which the auditee did not perform or document a suspension and debarment verification prior to executing the contract. No evidence was maintained demonstrating that the vendor's status was checked through SAM.gov or another allowable method before entering into the agreement. Cause: Management did not have procedures in place to ensure suspension and debarment verification was completed and documented prior to contract execution for all covered transactions. Effect: The auditee is at risk of entering into agreements with vendors that are suspended or debarred from participation in Federal programs, that could result in noncompliance with Federal requirements and the potential disallowance of related expenditures. Questioned Costs: None. A subsequent review determined the vendor was not listed as suspended or debarred in SAM.gov; therefore, no questioned costs were identified. Context: Of the covered vendor contracts tested for suspension and debarment compliance, one of four contracts tested did not contain documentation demonstrating that a suspension and debarment verification was performed prior to contract execution. Identification As A Repeat Finding: Not a repeat finding. Recommendation: We recommend management establish and implement procedures requiring personnel to verify and document suspension and debarment status prior to entering into all covered contracts. Verification should be retained in the procurement file and may include a SAM.gov search, vendor certification, or other method permitted by Federal regulations. Views Of Responsible Officials: Management agrees with the finding and recommendation. Procedures will be updated to require documented suspension and debarment verification prior to contract execution for all covered transactions. Anticipated Completion Date: August 31, 2026 Contact Person: Darlene Pickett, Accountant