Audit 53332

2022 ? 001 Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Centers for Independent Living Assistance Listing Number: 93.432 Federal Award Identification Number and Year: H132A37005-12 Award Period: October 1, 2021 through September 30, 2022 Type of Finding: - Significant Deficiency 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. Paraquad, Inc. (the organization) should have internal controls designed and maintain documentation to ensure compliance with those provisions. Condition: During our testing, we noted the Organization did not have adequate documentation of the procedures performed to ensure vendors were not suspended or debarred. Questioned Costs: None Context: During our testing, it was noted that the Organization was not maintaining documentation of the procedures and when they were performed of reviewing vendors prior to entering into a contract with a vendor to ensure the vendor was not on the suspended or debarred vendor list maintained by the General Services Administration. Cause: The Organization was unaware that documentation of the review of the contracts to ensure they were not suspended or debarred was not being maintained. Effect: The auditor noted no instances of noncompliance with the provisions of suspension, and debarment; however, the lack of documentation over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: 2021-001 Recommendation: We recommend the Organization to maintain documentation of the procedures performed of the review of potential contractors to determine they are not suspended or debarred and to document when the procedure took place to ensure the reviews are occurring before entering into contracts. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 ? 001 Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Centers for Independent Living Assistance Listing Number: 93.432 Federal Award Identification Number and Year: H132A37005-12 Award Period: October 1, 2021 through September 30, 2022 Type of Finding: - Significant Deficiency 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. Paraquad, Inc. (the organization) should have internal controls designed and maintain documentation to ensure compliance with those provisions. Condition: During our testing, we noted the Organization did not have adequate documentation of the procedures performed to ensure vendors were not suspended or debarred. Questioned Costs: None Context: During our testing, it was noted that the Organization was not maintaining documentation of the procedures and when they were performed of reviewing vendors prior to entering into a contract with a vendor to ensure the vendor was not on the suspended or debarred vendor list maintained by the General Services Administration. Cause: The Organization was unaware that documentation of the review of the contracts to ensure they were not suspended or debarred was not being maintained. Effect: The auditor noted no instances of noncompliance with the provisions of suspension, and debarment; however, the lack of documentation over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: 2021-001 Recommendation: We recommend the Organization to maintain documentation of the procedures performed of the review of potential contractors to determine they are not suspended or debarred and to document when the procedure took place to ensure the reviews are occurring before entering into contracts. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 ? 001 Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Centers for Independent Living Assistance Listing Number: 93.432 Federal Award Identification Number and Year: H132A37005-12 Award Period: October 1, 2021 through September 30, 2022 Type of Finding: - Significant Deficiency 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. Paraquad, Inc. (the organization) should have internal controls designed and maintain documentation to ensure compliance with those provisions. Condition: During our testing, we noted the Organization did not have adequate documentation of the procedures performed to ensure vendors were not suspended or debarred. Questioned Costs: None Context: During our testing, it was noted that the Organization was not maintaining documentation of the procedures and when they were performed of reviewing vendors prior to entering into a contract with a vendor to ensure the vendor was not on the suspended or debarred vendor list maintained by the General Services Administration. Cause: The Organization was unaware that documentation of the review of the contracts to ensure they were not suspended or debarred was not being maintained. Effect: The auditor noted no instances of noncompliance with the provisions of suspension, and debarment; however, the lack of documentation over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: 2021-001 Recommendation: We recommend the Organization to maintain documentation of the procedures performed of the review of potential contractors to determine they are not suspended or debarred and to document when the procedure took place to ensure the reviews are occurring before entering into contracts. Views of Responsible Officials: There is no disagreement with the audit finding.

2022 ? 001 Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Centers for Independent Living Assistance Listing Number: 93.432 Federal Award Identification Number and Year: H132A37005-12 Award Period: October 1, 2021 through September 30, 2022 Type of Finding: - Significant Deficiency 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. Paraquad, Inc. (the organization) should have internal controls designed and maintain documentation to ensure compliance with those provisions. Condition: During our testing, we noted the Organization did not have adequate documentation of the procedures performed to ensure vendors were not suspended or debarred. Questioned Costs: None Context: During our testing, it was noted that the Organization was not maintaining documentation of the procedures and when they were performed of reviewing vendors prior to entering into a contract with a vendor to ensure the vendor was not on the suspended or debarred vendor list maintained by the General Services Administration. Cause: The Organization was unaware that documentation of the review of the contracts to ensure they were not suspended or debarred was not being maintained. Effect: The auditor noted no instances of noncompliance with the provisions of suspension, and debarment; however, the lack of documentation over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: 2021-001 Recommendation: We recommend the Organization to maintain documentation of the procedures performed of the review of potential contractors to determine they are not suspended or debarred and to document when the procedure took place to ensure the reviews are occurring before entering into contracts. Views of Responsible Officials: There is no disagreement with the audit finding.