Audit 412380

Finding 2025-002 Procurement and Suspension and Debarment ALN 21.027 Coronavirus State and Local Fiscal Recovery Fund Criteria: In accordance with 2 CFR §180.300, the District is required to perform procedures to ensure that contractors are neither suspended nor debarred prior to entering into a contract to procure goods and services. This may be accomplished by checking the System for Award Management Exclusions, collecting a certification from the entity, or adding a clause or condition to the contract with the entity. Condition: For 3 of the 3 contracts tested, we noted that the District entered into a contract without performing procedures to ensure that the entity was not suspended or debarred when the contract was executed. Cause: The District did not establish procedures to ensure a verification of suspension or debarment was performed prior to entering into a contract with vendors. Effect: Adequate internal controls are not in place over Federal Procurement and Suspension and Debarment compliance requirements and the District is not in compliance with the requirement. Questioned Costs: None Recommendation: The District should design and implement procedures to ensure that contractors are neither suspended nor debarred prior to entering into a contract. Management’s Response: The District will be adding a clause/condition to ACAP contracts to ensure contractors are neither suspended or debarred in accordance with 2 CFR §180.300.