Audit 56916

FINDING 2022-002 ? NON-COMPLIANCE AND LIMITED CONTROLS OVER SUSPENSION AND DEBARMENT Criteria ? In accordance with 2 CFR 200.213 and 2 CFR part 180 non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred, or otherwise excluded. ?Covered transactions? include contracts for goods and services awarded under a non-procurement transaction that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. The requirement is for non-federal entities to check for suspended and debarred entities and persons, or obtain certifications before entering covered transactions. In addition, 2 CFR 200.303 requires that ?The non-Federal entity must: (a)?Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.? Condition ? The Center has adopted a federal suspension and debarment policy that requires contractors with awards that exceed the Center?s small purchase threshold to provide certifications regarding their exclusion status and that of their principal officers. During our testing we were not provided copies of obtained certifications, or proof that the Center has checked on SAM.gov whether the covered contractors have been suspended, or debarred prior to entering into the covered transactions. Questioned Costs ? None, as management subsequently searched on SAM.gov and demonstrated that none of the tested contractors in covered transactions had been suspended or debarred. Effect ? The Center did not perform proper suspension and debarment procedures regarding certain vendors of covered transaction prior to obtaining their services. This could have resulted in disallowed costs by the federal grantor. Cause ? The Center has not implemented their written policy, procedures or controls to ensure compliance with the federal suspension and debarment requirements. Recommendation ? We recommend that the Center consider changing its policy to allow for checking for suspended or debarred persons or entities on SAM.gov, in addition to allowing a contractor certification as a substitute, and implement its policy by establishing procedures and internal controls to ensure that the Uniform Guidance suspension and debarment requirements are met prior to entering into each covered transaction. Views of Responsible Officials ? We agree with the auditors? finding and the accompanying recommendation that the Center implements its policy with procedures and internal controls to ensure that the Uniform Guidance suspension and debarment requirements are met.

FINDING 2022-003 ? LATE GRANT REPORTING AND LIMITED CONTROLS OVER TIMELY REPORTING Criteria ? The U.S. Department of Transportation is the grantor in the major program tested, and requires that certain quarterly and annual financial reports and narrative progress reports must be submitted no later than thirty calendar days after the end of each reporting quarter, September 30, December 31, March 31, and June 30. Condition ? We inspected two of the four quarterly reports submitted for the major program and found that both of them (for quarters ended March 31, 2022 and June 30, 2022) were submitted late. Questioned Costs ? None Effect ? Delayed reporting affects the grantor?s ability to exercise effective grantee oversight and could result in grantor's withholding of payments and other adverse actions. Cause ? Changes in personnel during the period. Recommendation ? We recommend that the Center strengthen its internal controls over reporting to ensure timely submission of all future reports. Views of Responsible Officials ? We agree with the auditors? finding and the accompanying recommendation that the Center design and implement internal control procedures to ensure the timely submission of all future reports.

FINDING 2022-002 ? NON-COMPLIANCE AND LIMITED CONTROLS OVER SUSPENSION AND DEBARMENT Criteria ? In accordance with 2 CFR 200.213 and 2 CFR part 180 non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred, or otherwise excluded. ?Covered transactions? include contracts for goods and services awarded under a non-procurement transaction that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. The requirement is for non-federal entities to check for suspended and debarred entities and persons, or obtain certifications before entering covered transactions. In addition, 2 CFR 200.303 requires that ?The non-Federal entity must: (a)?Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.? Condition ? The Center has adopted a federal suspension and debarment policy that requires contractors with awards that exceed the Center?s small purchase threshold to provide certifications regarding their exclusion status and that of their principal officers. During our testing we were not provided copies of obtained certifications, or proof that the Center has checked on SAM.gov whether the covered contractors have been suspended, or debarred prior to entering into the covered transactions. Questioned Costs ? None, as management subsequently searched on SAM.gov and demonstrated that none of the tested contractors in covered transactions had been suspended or debarred. Effect ? The Center did not perform proper suspension and debarment procedures regarding certain vendors of covered transaction prior to obtaining their services. This could have resulted in disallowed costs by the federal grantor. Cause ? The Center has not implemented their written policy, procedures or controls to ensure compliance with the federal suspension and debarment requirements. Recommendation ? We recommend that the Center consider changing its policy to allow for checking for suspended or debarred persons or entities on SAM.gov, in addition to allowing a contractor certification as a substitute, and implement its policy by establishing procedures and internal controls to ensure that the Uniform Guidance suspension and debarment requirements are met prior to entering into each covered transaction. Views of Responsible Officials ? We agree with the auditors? finding and the accompanying recommendation that the Center implements its policy with procedures and internal controls to ensure that the Uniform Guidance suspension and debarment requirements are met.

FINDING 2022-003 ? LATE GRANT REPORTING AND LIMITED CONTROLS OVER TIMELY REPORTING Criteria ? The U.S. Department of Transportation is the grantor in the major program tested, and requires that certain quarterly and annual financial reports and narrative progress reports must be submitted no later than thirty calendar days after the end of each reporting quarter, September 30, December 31, March 31, and June 30. Condition ? We inspected two of the four quarterly reports submitted for the major program and found that both of them (for quarters ended March 31, 2022 and June 30, 2022) were submitted late. Questioned Costs ? None Effect ? Delayed reporting affects the grantor?s ability to exercise effective grantee oversight and could result in grantor's withholding of payments and other adverse actions. Cause ? Changes in personnel during the period. Recommendation ? We recommend that the Center strengthen its internal controls over reporting to ensure timely submission of all future reports. Views of Responsible Officials ? We agree with the auditors? finding and the accompanying recommendation that the Center design and implement internal control procedures to ensure the timely submission of all future reports.