2024-001
Federal Agency: U.S. Department of Treasury
Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds
Assistance Listing Number: 21.027
Federal Award Identification
Number and Year:
None
Pass-Through Agency: Maryland State Department of Education
Pass-Through Number: 211837-...
2024-001
Federal Agency: U.S. Department of Treasury
Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds
Assistance Listing Number: 21.027
Federal Award Identification
Number and Year:
None
Pass-Through Agency: Maryland State Department of Education
Pass-Through Number: 211837-01
Award Period: 3/3/2021 – 12/31/2024
Type of Finding: Significant Deficiency in Internal Control over Compliance,
Other Matters
Recommendation:
We recommend that the Board review its policies and procedures to ensure they include the three options for determining suspension and debarment status listed in 2 CFR 180.300 and that controls are sufficient to ensure that the suspension and debarment status is verified for all vendors prior to entering into covered transactions.
Explanation of disagreement with audit finding: There is no disagreement with the audit finding.
Action taken in response to finding:
The Purchasing Office had processes in place to ensure debarment status was checked before contract award. Both the contract checklist (attached) and the Qualifications Affidavit in the solicitation template contained debarment status language to ensure the necessary checks took place.
Despite these processes, a contract for curriculum materials was not checked for debarment status before contract award. The cause of that oversight seems to be the different procurement processes used in instructional materials procurements. The contract was not competitively awarded, so they did not require a qualifications affidavit, which would have ensured the debarment status was checked. In this instance, a checklist was not included in the contract file as required, which would have also triggered a debarment check.
In response, the Purchasing Office is adding a third layer of oversight - requiring that a revised contract affidavit (sample attached) is completed for every contract award. Language was added to the current contract affidavit that contains an affirmation by the contractor that they are not suspended or debarred by any government entity – local, state, and federal. The relevant section is highlighted in the attachment.
To summarize, the Purchasing Office will engage the three processes listed below to ensure timely debarment checks are conducted on every contract, regardless of funding source.
1) Contract Checklist
2) Qualifications Affidavit
3) Contract Affidavit
Name(s) of the contact person(s) responsible for corrective action:
Mary Jo Childs
Director of Purchasing
Planned completion date for corrective action plan: For immediate implementation and ongoing.