Information on Federal Programs: 93.083 – Centers for Disease Control and Prevention: Prevention of Disease, Disability, and Death through Immunization & Control of Respiratory & Related Diseases. Criteria or Specific Requirements: According to 2 CFR §200.303, the non-Federal entity must: 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. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government, issued by the Comptroller General of the United States, or the Internal Control Integrated Framework, issued by COSO. Additionally, according to 2 CFR §200.214, the non-Federal entity is subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: During our audit, we noted that ATS did not perform checks via SAM.gov to ensure that potential contractors or consultants were not suspended or debarred. Cause: Management did not have internal control procedures in place to ensure that suspension and debarment checks were being performed prior to entering into contracts with contractors and consultants. Effect: The failure to screen such parties increases the possibility that U.S. Government funds may inadvertently be provided to individuals or organizations deemed to be suspended or disbarred by the U.S. Government. Perspective: ATS established a new process where a debarment certification representation paragraph is automatically included on all the contractor agreements. ATS also issued contract modifications which included the debarment certification for all contracts signed prior to the change. Within a random sample of 24 disbursements, 17 disbursements to 3 contractors would have required compliance with the suspension and debarment check. Questioned Costs: Questioned costs were not identified. Repeat Finding: Not applicable. Recommendation: ATS should continue including the debarment certification paragraph on all new contracts to ensure compliance with the Uniform Guidance going forward.
FINDING 2023-004 Subject: Drinking Water State Revolving Fund (DWSRF) Cluster - Procurement and Suspension and Debarment Federal Agency: Environmental Protection Agency Federal Program: Drinking Water State Revolving Fund Assistance Listings Number: 66.468 Federal Award Number and Year (or Other Identifying Number): DW23150901 Pass-Through Entity: Indiana Finance Authority Compliance Requirement: Procurement and Suspension and Debarment Audit Findings: Material Weakness, Modified Opinion Condition and Context An effective internal control system was not designed or implemented at the City to ensure compliance with requirements related to the grant agreement and the Procurement and Suspension and Debarment compliance requirement. Procurement - Policy The City had not established a purchasing policy that reflected applicable state laws and regulations, including procedures to avoid the acquisition of unnecessary or duplicative items and procedures to ensure that all solicitations incorporate a clear and accurate description of the technical requirements for the material, product, or service to be procured. Additionally, the City did not maintain a policy that prohibits the use of statutorily or administratively imposed state, local, or tribal geographical preferences in evaluation of bids or proposals. INDIANA STATE BOARD OF ACCOUNTS 22 CITY OF LOGANSPORT SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Procurement - Small Purchases The City expended federal funds to pay 12 separate vendors to provide goods and services for the duration of the City's Lead Service Line Replacement project. A population of 5 vendors had aggregated expenditures for the audit period that were less than the simplified acquisition threshold of $150,000 but exceeded the $10,000 micro-purchase threshold. All 5 vendors were tested; for 2 of the 5 vendors, the City was unable to provide any documentation that the procurement method used was appropriate or that the procurement provided full and open competition or rationale to support the determination to limit competition. The history of the procurement, including rationale for the method of procurement, selection of the vendor, and the basis for the price, was not adequately documented. Suspension and Debarment Prior to entering into subawards and covered transactions with award funds, recipients are required to verify that vendors are not suspended, debarred, or otherwise excluded. "Covered transactions" include, but are not limited to, contracts for goods and services awarded under a nonprocurement transaction (i.e., grant agreement) that are expected to equal or exceed $25,000. The verification is to be done by checking the Excluded Parties List System (EPLS), collecting a certification from that person, or adding a clause or condition to the covered transaction with that person. Due to the agreement with the Indiana Finance Authority (IFA), the City was not required to perform testing over suspension and debarment for a majority of the vendors used; however, several drawdowns from the State Revolving Funds (SRF) program were used to reimburse the City for payments made to specific vendors. The vendors paid directly by the City were not included in the IFA's procedures for checking suspension and debarment, therefore, the City was obligated to meet the requirement. The City did not maintain a set of procedures for checking suspension and debarment status of vendors for expenditures related to the SRF awards. A total of two vendors paid directly by the City exceeded the suspension and debarment threshold of $25,000 and were subject to testing. No documentation to show that suspension and debarment was verified prior to entering into the contract could be provided for either vendor. The lack of internal controls and noncompliance was a systemic issue throughout the audit period. Criteria 2 CFR 200.303 states in part: "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. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." INDIANA STATE BOARD OF ACCOUNTS 23 CITY OF LOGANSPORT SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) 2 CFR 200.320 states in part: "The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and §§ 200.317, 200.318, and 200.319 for any of the following methods of procurement used for the acquisition of property or services required under a Federal award or sub-award. (a) Informal procurement methods. When the value of the procurement for property or services under a Federal award does not exceed the simplified acquisition threshold (SAT), as defined in § 200.1, or a lower threshold established by a non-Federal entity, formal procurement methods are not required. The non-Federal entity may use informal procurement methods to expedite the completion of its transactions and minimize the associated administrative burden and cost. The informal methods used for procurement of property or services at or below the SAT include: . . . (2) Small purchases– (i) Small purchase procedures. The acquisition of property or services, the aggregate dollar amount of which is higher than the micro-purchase threshold but does not exceed the simplified acquisition threshold. If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate by the non-Federal entity. . . ." 2 CFR 180.300 states: "When you enter into a covered transaction with another person at the next lower tier, you must verify that the person with whom you intend to do business is not excluded or disqualified. You do this by: (a) Checking the SAM.gov Exclusions; or (b) Collecting a certification from that person; or (c) Adding a clause or condition to the covered transaction with that person." 2 CFR 200.214 states: "Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities." 2 CFR 200.318(a) states: "The non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The nonfederal entity's documented procurement procedures must conform to the procurement standards identified in §§ 200.317 through 200.327." INDIANA STATE BOARD OF ACCOUNTS 24 CITY OF LOGANSPORT SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) 2 CFR 200.318(d) states: "The non-Federal entity's procedures must avoid acquisition of unnecessary or duplicative items. Consideration should be given to consolidating or breaking out procurements to obtain a more economical purchase. Where appropriate, an analysis will be made of lease versus purchase alternatives, and any other appropriate analysis to determine the most economical approach." 2 CFR 200.319(c) states: "The non-Federal entity must conduct procurements in a manner that prohibits the use of statutorily or administratively imposed state, local, or tribal geographical preferences in the evaluation of bids or proposals, except in those cases where applicable Federal statutes expressly mandate or encourage geographic preference. Nothing in this section preempts state licensing laws. When contracting for architectural and engineering (A/E) services, geographic location may be a selection criterion provided its application leaves an appropriate number of qualified firms, given the nature and size of the project, to compete for the contract." 2 CFR 200.319(d) states: "The non-Federal entity must have written procedures for procurement transactions. These procedures must ensure that all solicitations: (1) Incorporate a clear and accurate description of the technical requirements for the material, product, or service to be procured. Such description must not, in competitive procurements, contain features which unduly restrict competition. The description may include a statement of the qualitative nature of the material, product or service to be procured and, when necessary, must set forth those minimum essential characteristics and standards to which it must conform if it is to satisfy its intended use. Detailed product specifications should be avoided if at all possible. When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a 'brand name or equivalent' description may be used as a means to define the performance or other salient requirements of procurement. The specific features of the named brand which must be met by offers must be clearly stated; and (2) Identify all requirements which the offerors must fulfill and all other factors to be used in evaluating bids or proposals." Cause The City did not maintain a procurement policy that would demonstrate the appropriate procedures to be followed when procuring with federal funding and were not aware of the need to follow federal guidelines for procurement or suspension and debarment for expenditures associated with the SRF awards. Effect Without a proper system of internal controls in place that operated effectively, noncompliance remained undetected. As a result, proper procurement procedures were not adhered to for all vendors. Without following the required methods for procurement, the City could be overpaying for services or providing federal funds to an entity that is suspended or debarred. Noncompliance with the provisions of federal statutes, regulations, and the terms and conditions of the federal award could result in the loss of future federal funds to the City. INDIANA STATE BOARD OF ACCOUNTS 25 CITY OF LOGANSPORT SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Questioned Costs There were no questioned costs identified. Recommendation We recommended that the City's management establish a proper system of internal controls to ensure expenditures made from federal awards use the appropriate procurement method and retain the documentation to support the procurement methods used in order to ensure compliance with the terms and conditions of the federal award and ensure that vendors paid from federal funds are neither suspended nor debarred. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
Information on the federal program: Subject: Coronavirus State and Local Fiscal Recovery Funds – Internal Controls and Compliance Federal Agency: Department of the Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Entity: Indiana Finance Authority Compliance Requirement: Procurement and Suspension and Debarment Audit Findings: Material Weakness, Noncompliance Criteria: 2 CFR section 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR section 200.303 states in part: "The non-Federal entity must use one of the following methods of procurement… (b) Simplified acquisition thresholds. The non-Federal entity is responsible for determining an appropriate simplified acquisition threshold based on internal controls, an evaluation of risk and its documented procurement procedures which must not exceed the threshold established in the FAR. When applicable, a lower simplified acquisition threshold used by the non-Federal entity must be authorized or not prohibited under State, local, or tribal laws or regulations. Entities must obtain price or rate quotations from an adequate number of qualified sources to ensure full and open competition. In accordance with 2 CFR 200.214 and the government-wide requirements in 2 CFR Part 180, non-Federal entities are prohibited from contracting with or making subawards to parties that are suspended, debarred, or otherwise excluded from federal programs. This requirement applies to all contracts and procurements under federal awards, regardless of dollar amount, including those conducted under simplified acquisition procedures. Verification must be performed by checking the System for Award management (SAM.gov) or obtaining a written certification from the vendor. Condition: An effective internal control system was not in place at the District in order to ensure compliance with requirements related to the grant agreement and the simplified acquisitions procurement method of the Procurement and Suspension and Debarment compliance requirement. Cause: The District's management had not developed a system of internal controls to ensure compliance with the compliance requirements listed above. Effect: The failure to establish an effective internal control system placed the District at risk of noncompliance with the grant agreement and the compliance requirements. Questioned Costs: There were no questioned costs identified. Context: There were two contracts subject to procurement and suspension and debarment during the year. For both procurements, the District could only provide final signed contracts and did not have evidence of the full bid process. For the first selection, the District provided the request for proposal but did not provide all bids that were received or a scoring rubric to support why the District selected the vendor. For the second selection, the request for proposal, bids received, and scoring rubric were not provided. Additionally, evidence of a suspension and debarment check for both selections was not available. The District did not have a formal procurement policy documented. Identification as a repeat finding: No Recommendation: We recommend that the District’s management establish controls related to the procurement process. The District should implement a formal procurement and suspension and debarment policy that states the process that is required for procurements based on the procurement amount. The policy should outline the requirement for a request for proposal, number of bids required, scoring rubric, and suspension and debarment check. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
Program Information: Assistance Listing #: 93.445 U.S. Department of Health and Human Services I.H.S. Water Tank Replacement Award Numbers: PH12-U35, RN21-15 Award Periods: 7/29/2021-7/29/2025 Criteria: Per 2 CFR section 180.300 and 2 CFR section 200.214, non-federal entities must not enter into covered transactions with parties that are suspended or debarred. Verification must be performed by checking the excluded parties list in the System for Award Management (SAM.gov) or by obtaining a certification from the vendor, and this verification must be documented and retained as part of the procurement record. Additionally, 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls over federal awards, including compliance with federal statutes, regulations, and the terms and conditions of the award, which encompasses the requirement to verify and document vendor eligibility. Condition/Context: During testing we noted the following: For 1 of 1 vendors tested, the Tribe did not maintain documentation demonstrating that the vendor was verified as not federally suspended or debarred prior to entering into the contract. [ X ] Compliance Finding [ X ] Significant Deficiency [ ] Material Weakness Cause: The Tribe’s procedures for suspension and debarment verification were not consistently followed or documentation was not retained. Staff turnover and inconsistent application of procurement documentation practices contributed to the exception. Effect: Without documented verification, the Tribe cannot demonstrate that the vendor was eligible to receive federal funds at the time the contract was awarded. This increases the risk of noncompliance with federal procurement requirements and could result in unallowable costs if a vendor were suspended or debarred. Questioned Costs: None noted. The vendor was not found to be suspended or debarred; the issue relates solely to lack of documentation. Repeat Finding: No. Recommendation: We recommend the Tribe strengthen its procurement procedures to ensure suspension and debarment verification is documented for all vendors prior to contract award. This may include requiring a printed SAM.gov verification, a signed vendor certification, or a standard contract clause, and ensuring the documentation is retained in the procurement file. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has prepared corrective action as detailed in its Corrective Action Plan.
2023-002 – Procurement, Suspension, and Debarment Program: ALN# 47.070 = Computer and Information Science and Engineering Federal Agency: National Science Foundation Federal Award Identification Number(s): 2216614, 2122756 Period: Year Ended December 31, 2023 Criteria: Under 2 CFR 200.319, and 2 CFR 200.320, non-federal entities must maintain written procurement policies and internal controls to ensure compliance with Federal requirements, including suspension and debarment checks. Under 2 CFR 200.214, non-federal entities must not enter into contracts with parties that are suspended or debarred. Condition: During our review of procurement policies, we noted that the Organization did not have written procedures addressing procurement suspension and debarment requirements and the Organization was unable to furnish documentation that procurement, suspension, and debarment procedures took place for all contracts selected for testing. Cause: The Organization has not developed formal written procurement, suspension, and debarment policies and procedures. Effect: Without written polices and procedures, the Organization is at increased risk of: • Failing to verify vendor eligibility. • Contracting with suspended or debarred entities. • Procurements conducted in a manner that fails to provide full and open competition. Questioned Costs: No questioned costs identified. Context: This sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: No Recommendation: We recommend that the Organization: • Develop and implement written procurement policies that clearly outline procedures for suspension and debarment verification. • Require and document evidence of compliance for all covered procurement transactions • Train staff on the updated procedures. • Periodically review procurement files to ensure consistent adherence. Views of Responsible Officials: See management corrective action plan attached.
The City did not have adequate internal controls and did not comply with federal suspension and debarment requirements. Assistance Listing Number and Title: 21.027 – COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Federal Grantor Name: U.S. Department of Treasury Federal Award/Contract Number: N/A Pass-through Entity Name: N/A Pass-through Award/Contract Number: N/A Known Questioned Cost Amount: $0 Prior Year Audit Finding: N/A Background The purpose of the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program is to respond to the COVID-19 pandemic’s negative effects on public health and the economy, provide government services to the extent COVID-19 caused a reduction in revenues collected, make necessary investments in water, sewer or broadband infrastructure, provide emergency relief from natural disasters or their negative economic impacts, fund projects eligible under certain programs administered by the U.S. Department of Transportation through three pathways and fund projects eligible under the programs established in Title I of the Housing and Community Development Act of 1974. In 2023, the City spent $388,125 in program funds for these activities. Federal regulations require recipients to establish, document and maintain internal controls that ensure compliance with program requirements. These controls include understanding program requirements and monitoring the effectiveness of established controls. Federal requirements prohibit recipients from contracting with or purchasing from parties suspended or debarred from doing business with the federal government. Whenever the City enters into contracts or purchases goods or services that it expects to equal or exceed $25,000, paid all or in part with federal funds, it must verify the contractors are not suspended, debarred or otherwise excluded from participating in federal programs. The City may verify this by obtaining a written certification from the contractor, adding a clause or condition into the contract that states the contractor is not suspended or debarred, or checking for exclusion records in the U.S. General Services Administration's System for Award Management at SAM.gov. The City must verify this before entering into the contract, and must maintain documentation demonstrating compliance with this federal requirement. Description of Condition Although the City has a process to verify the suspension and debarment status for contractors it pays $25,000 or more using federal funds, our audit found the City did not follow this process and did not verify the one contractor we tested was not suspended or debarred before entering into the contract with them. We consider this deficiency in internal controls to be a material weakness that led to material noncompliance. Cause of Condition City staff were aware of the federal suspension and debarment verification requirements and normally verify that the requirements are met during the procurement process. However, the City experienced turnover in the position responsible for documenting the verification. Current City staff were unable to find documentation showing evidence that they verified the contractor’s suspension and debarment status. Effect of Condition The City did not obtain a written certification from the contractor, insert a clause into the contract or check for exclusion records at SAM.gov to verify the contractor it paid $56,217 using federal funds was not suspended or debarred before contracting with or purchasing from them. Without adequate internal controls, the City increases its risk of awarding federal funds to contractors that are excluded from participating in federal programs. Any payments the City made to an ineligible party would be unallowable, and the awarding agency could potentially recover them. We subsequently verified the contractor was not suspended or debarred. Therefore, we are not questioning costs. Recommendation We recommend the City strengthen its internal controls to verify all contractors it pays $25,000 or more, all or in part with federal funds, are not suspended or debarred from participating in federal programs and maintain documentation demonstrating compliance with this requirement. City’s Response The City of North Bend acknowledges that a contract utilizing SLFRF funds, and awarded to a software vendor, did not include within the contract a required self-attestation concerning Suspensions and Debarments. The self-attestation was used in lieu of a documented review of the SAM.gov portal for suspensions and debarments. This was an oversight of contract review process. Other contracts issued during the same period included self-attestation language from 2 CFR 200.317 through 2 CFR 200.327. In 2024 and 2025, the Public Works Deputy Director, Contract Specialist, and Capital Staff Accountant ensure adherence to all applicable local, state, and federal procurement laws and regulations as provided in the Uniform Guidance at 2 CFR 200.214, 2 CFR Part 180, and Treasury’s implementing regulations at 31 CFR part 19, prohibiting recipients from entering into contracts with suspended or debarred parties. The City of North Bend understands the significance of the finding and immediately took steps to review all subsequent contracts for compliance. Auditor’s Remarks We thank the City for its cooperation throughout the audit and the steps it has taken to address the concern. We will review the status of the City’s corrective action during our next regular audit. Applicable Laws and Regulations Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), section 516, Audit findings, establishes reporting requirements for audit findings. Title 2 CFR Part 200, Uniform Guidance, section 303, Internal controls, describes the requirements for auditees to maintain internal controls over federal programs and comply with federal program requirements. The American Institute of Certified Public Accountants defines significant deficiencies and material weaknesses in its Codification of Statements on Auditing Standards, section 935, Compliance Audits, paragraph 11. Title 2 CFR part 180, OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement) establishes nonprocurement debarment and suspension regulations, implementing Executive Orders 12549 and 12689.
Finding No.: 2023-003 Federal Agency: U.S. Department of Commerce AL Program: 11.482 Coral Reef Preservation Program Federal Award Nos.: NA20NOS4820198, NA20NOS4820046 Area: Procurement and Suspension and Debarment Questioned Costs: $57,750 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: For all three (3) transactions (or 100%) tested amounting in total to $57,750, the Trust could not provide written evidence that prior to entering a covered transaction, the vendor or contractor has not been debarred, suspended, or otherwise excluded from participating in the contract. Cause: The Trust has no procedures to verify whether individuals or contractors are suspended or debarred prior to entering into a covered transaction. Likewise, the Trust does not have written documentation proving prior to entering into a contract, that the vendor was deemed not to be debarred or suspended. Effect: The Trust is in noncompliance with applicable suspension and debarment requirements. Questioned costs of $57,750 is reported. Identified as a Repeat Finding: Finding No. 2022-001 Recommendation: The Trust should revisit and implement formal procedures to document written evidence that, prior to entering into a covered transaction, a search had been performed to ensure the potential individual or contractor is not suspended, debarred, or otherwise excluded. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: Management agrees with the finding. See separate Corrective Action Plan.
Procurement Criteria: Under the Uniform Guidance (2 CFR 200.214 and 2 CFR Part 180), non-Federal entities are prohibited from entering into covered transactions with parties that are suspended, debarred, or otherwise excluded from participating in federal assistance programs. For covered transactions, the entity must verify that the vendor is not excluded or debarred. This verification must be done by: 1. Checking the System for Award Management (SAM.gov) exclusions list, 2. Collecting a certification from the entity, or 3. Adding a clause or condition to the covered transaction. Condition: During our testing of procurement transactions funded by the program, we selected a sample of one vendor with transactions exceeding the $25,000 threshold. For that vendor, the City could not provide documentation or evidence (such as a timestamped SAM.gov screenshot, signed certification, or contract clause) to prove that a suspension and debarment verification was performed prior to entering into the contract or awarding the funds. Cause: The City lacked adequate internal control procedures and oversight to ensure that documentation of the suspension and debarment verification process was systematically retained in the procurement files. Effects: The Organization is in non-compliance with federal procurement and record retention guidelines. Without maintaining proper documentation, the Organization cannot demonstrate compliance, increasing the risk that federal funds could be awarded to an excluded or debarred party, which could lead to disallowed costs. Questioned Costs: None identified. Recommendation: We recommend that management update its procurement policies and internal control procedures to strictly enforce documentation requirements. Specifically: • Procurement personnel should perform a SAM.gov exclusion search before a contract is finalized or a purchase order is issued. • A PDF screenshot of the SAM.gov "Active/No Exclusions" result must be printed or saved digitally, dated, and appended directly to the vendor's procurement or contract file. • Management should implement a periodic review process to ensure all covered transaction files contain the required verification documentation before payments are authorized. Auditee’s Response: We concur with the finding and recommendations.
Finding 2023-011—Suspension and Debarment Support Material Weakness / Material Noncompliance Federal Program: All federal awards. Criteria: Under 2 CFR 200.214 (Suspension and debarment) requires non-federal entities to comply with the requirements in 2 CFR Part 180 (and agency-specific supplements) and not enter into covered transactions with parties that are suspended, debarred, or otherwise excluded. Acceptable verification methods typically include: (1) checking SAM.gov for exclusion status, (2) obtaining a written certification from the entity, or (3) including appropriate clause/term in the subaward/contract and documenting verification before entering the covered transaction, consistent with 2 CFR Part 180 (Nonprocurement Debarment and Suspension). The OMB Compliance Supplement (Suspension & Debarment requirement) expects verification to occur prior to award (or at the time of contracting/subaward) and to be documented in the award file. Finding 2023-011—Suspension and Debarment Support (Continued) Condition: IFDC did not retain timely documentation evidencing that subrecipients/contractors under the federal program were checked for suspension and debarment status prior to award or payment. Management provided support that this was done but it was after the award and payment to vendors and subrecipients and no interim documentation of verification existed. Cause: Current IFDC policies do not require or explicitly define the timing (pre-award) and evidence (e.g., saved SAM record) for suspension/debarment verification for covered transactions. Effect: IFDC has increased risk that could enter or continue awards and transactions with excluded parties, resulting in noncompliance with 2 CFR 200.214 and 2 CFR Part 180. There is also potential financial risk if costs are disallowed or questioned due to awards and payments with ineligible parties. As of year-end, we did not identify any instance where a subrecipient/contractor was actually excluded; however, the lack of timely documentation represents noncompliance and a significant deficiency in internal control over compliance. Questioned costs: None noted. Context: IFDC recorded $5.1 million in subgrantee expenses and over $2.5 million in vendors that received over $25,000 during the year. Exceptions noted were not isolated and indicate a systematic documentation and control issue affecting the suspension and debarment requirement. Repeat Finding: No Recommendation: IFDC should update its policies and procedures to require pre-award verification for all covered transactions (as defined in 2 CFR Part 180) and to retain evidence (e.g., PDF/Screenshot of SAM.gov search results showing entity name, UEI, date/time stamp). In addition, IFDC should implement a standard pre-award checklist or system control (required field) to block award setup until a suspension/debarment verification date and evidence are recorded and establish monitoring procedures to confirm ongoing adherence and periodic re-checks when appropriate (e.g., multi-year awards at renewal or modification). Views of responsible officials and planned corrective actions: Management agrees with the finding. See corrective action plan.
2023-003 Procurement, Suspension, and Debarment - (Material Weakness) Federal Program Information: Funding Agency Title Federal Assistance Listing Number(s) Award Year and Number U.S. Department of Treasury Coronavirus State and Local Fiscal Recovery Funds 21.027 418-22 Criteria or Specific Requirement: In accordance with 2 CFR Section 200.214 of the Uniform Guidance states that SWIWC must comply with 2 CFR part 180, which implements Executive Orders 12549 and 12689. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities 2 CFR 200.318(i) Procurement records. The recipient or subrecipient must maintain records sufficient to detail the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price. Condition: During our testwork over procurement, for ten samples tested, SWIWC was unable to provide adequate supporting documentation demonstrating that required procurement procedures were performed in accordance with established policies and applicable Uniform Guidance requirements. Cause: SWIWC did not consistently follow or maintain adequate documentation of its established procurement policies and procedures. Effect: SWIWC did not demonstrate compliance with applicable procurement requirements under the Uniform Guidance. As a result, there is an increased risk that purchases may not be properly authorized, adequately supported, competitively procured, or otherwise compliant with federal requirements. Auditor's Recommendations: We recommend that SWIWC strengthen its procurement monitoring controls to ensure personnel consistently follow established procurement policies and procedures. SWIWC should also require complete documentation for each procurement transaction, including approvals, quotations or bids, vendor selection support, and other applicable procurement records.
Finding 2023-003: 21.027 - Coronavirus State and Local Fiscal Recovery Funds:COVID-19 - Material Weakness Compliance Requirement: Reporting and Subrecipient Monitoring Criteria: In accordance with the Federal Funding Accountability and Transparency Act (FFATA), as implemented by 2 CFR Part 170, recipients of Federal awards are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) in a timely and complete manner. Additionally, pursuant to 2 CFR Part 200, including §200.332 (Requirements for Pass-Through Entities) and §200.214 (Suspension and Debarment), pass-through entities are required to establish and maintain procedures to monitor subrecipients to ensure Federal awards are used for authorized purposes and in compliance with laws, regulations, and award provisions. These responsibilities include: • Verifying subrecipients are not suspended or debarred. • Performing and documenting subrecipient risk assessments. • Monitoring subrecipient activities, including review of required audit reports under Subpart F. • Ensuring proper reporting of Federal awards, including Schedule of Federal Awards (“SEFA”) reporting by subrecipients. • Reporting first-tier subawards in FSRS, as required by FFATA. Condition: The Organization did not establish formal policies or procedures to ensure compliance with subrecipient monitoring and reporting requirements. During testing, we noted the following: • Required first-tier subaward information was not reported to FSRS for applicable subawards of $30,000 or more. • The Organization did not document verification of suspension and debarment status prior to issuing subawards. • The Organization did not perform or document subrecipient risk assessments. • Procedures were not in place to obtain and review subrecipient Single Audit reports. • The Federal award passed through by the Organization was not identified on the subrecipient’s Schedule of Expenditures of Federal Awards (SEFA). • The Organization did not have procedures to monitor or verify supporting documentation for personnel costs charged by subrecipients and subcontractors. Effect: Due to not having adequate subrecipient monitoring and reporting controls, the Organization was not in compliance with FFATA and Uniform Guidance requirements. The Organization cannot ensure that subrecipients were eligible to receive Federal funds, that subrecipient activities were properly monitored, or that Federal awards were accurately reported at both the prime and subrecipient levels. This also increases the risk that Federal expenditures may be misstated or not properly reported for Single Audit purposes. Questioned Cost: None Cause: The Organization did not establish formal written policies, procedures, or internal controls to address subrecipient monitoring and FFATA reporting requirements. Additionally, there was insufficient training and oversight to ensure compliance with Federal regulations related to subrecipient management and reporting. Pass-Through Entity Monitoring Results: The Colorado Department of Labor and Employment (CDLE), the pass-through entity, issued a Financial Desk Review in April 2023 covering the period from December 1, 2021 through July 31, 2022. The desk review identified deficiencies substantially similar to those described in this finding and required corrective actions, with supporting documentation requested by April 10, 2023. Based on our audit procedures, we determined that the related internal controls were not operating effectively during the 2023 audit period, as evidenced by the substantially similar compliance deficiencies identified during our testing. This information is provided as relevant background regarding the significance of the deficiencies and is not intended to indicate the existence of a prior-year audit finding. Recommendation: We recommend the Organization implement comprehensive subrecipient monitoring and reporting policies and procedures in accordance with 2 CFR §200.332 and 2 CFR Part 170, including: • Reporting all applicable first-tier subawards to FSRS in a timely and complete manner. • Documenting suspension and debarment verification for all subrecipients (e.g., SAM.gov). • Performing and documenting subrecipient risk assessments prior to issuing subawards. • Establishing procedures to monitor subrecipient activities, including financial and programmatic reviews. • Obtaining and reviewing subrecipient Single Audit reports and following up on any related findings. • Ensuring subaward agreements include all required Federal award information and reporting requirements, including SEFA reporting. • Implementing procedures to ensure subrecipients and subcontractors maintain adequate supporting documentation for personnel costs. Response: There is no disagreement with the audit finding. In fact, the Organization worked towards developing and implementing enhancements to its subrecipient monitoring framework as suggested by the CDLE Financial Desk Review, from the date the Organization received it and throughout the remainder of the year, including revisions to policies, procedures, and oversight activities.
2023-002 – PROCUREMENT, SUSPENSION, AND DEBARMENT COMPLIANCE Type of Finding: (F) – Significant Deficiency in Internal Control Over Compliance of Federal Awards Funding Agency: National Endowment for the Humanities Title: State Humanities Program and Humanities Councils American Rescue Plan Funding AL #: 45.129 Award #s: ZSO-283159-21 ARP, SO-268668-20 and SO-289867-23 Award Period: November 1, 2022 – October 31, 2023 Questioned Costs: None Statement of Condition The Council did not consistently follow the suspension and debarment policy and did not keep backup documentation for some of the procurement transactions over $10,000. Context The Council purchased goods and services exceeding $25,000 and documentation was not available to substantiate that the vendors were screened for suspension and debarment prior to expenditure. Note: All the vendors were screened during the audit and none of them had any exclusions. Also, the Council had documentation for all 6 sub-awardees tested (non-procurement clause of the award.) Criteria Per 2 CFR 200.320(a)(2)(i) Small purchases - (i) Small purchase procedures. The acquisition of property or services, the aggregate dollar amount of which is higher than the micro-purchase threshold ($10,000 in fiscal year 2023) but does not exceed the simplified acquisition threshold ($249,999 in fiscal year 2023). If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate by the non-Federal entity. Additionally, 2 CFR 200.214 requires vendors awarded contracts expected to equal or exceed $25,000 to be checked for suspension and debarment via the System for Award Management Exclusions (SAM.gov). According to §180.300 of Subpart C–Responsibilities of Participants Regarding Transactions Doing Business with Other Persons of 2 CFR Part 180, when the grantee enters into a covered transaction with another person at the next lower tier, they must verify that the person with whom they intend to do business is not excluded or disqualified. This can be done by: (a) Checking SAM Exclusions; or (b) Collecting a certification from that person; or (c) Adding a clause or condition to the covered transaction with that person. While the Council has policies in place and links in the policies to the appropriate CFRs, it seems that the policies might need to be updated to specify the thresholds for debarment and suspension checks for vendor and the updated threshold for micro-purchasing. Cause The Council had turnover in employment for staff in charge of obtaining 3 bids and documentation could not be located. The policies might need to be updated with the new micro-purchasing thresholds and clearly specify the thresholds for vendor check-ups in sam.gov. Effect There is the risk that the Council could contract with a party that is suspended or debarred. The Council is not following consistently the policies. Recommendation Design and implement internal controls to ensure that contracts expected to equal or exceed $25,000, or meet certain other criteria as specified in 2 CFR 180.220, are checked for suspension and debarment. Improve the policies and procedures manual by updating the thresholds for micro-purchases and small purchases, and adding explicit reference to the $25,000 threshold for vendors under procurement regulations regarding debarment and suspension. View of Responsible Official and Corrective Action Plan: NMHC management is in agreement with this finding. Management has reviewed the existing federal procurement policies and procedures found in 2 CFR 200 and will enforce the policies and procedures to ensure existing suspension and debarment policies and procedures are followed. NMHC’s Executive Director or Deputy Director will review all potential purchases and contracts for compliance with the policies. The Executive Director or Deputy Director will also provide an additional check by reviewing all vendors paid $25,000 or more against the SAM website. Proof of the SAM website review and approval will be maintained in each vendor file. All future contracts of any size will also include a clause or condition to the covered transaction with the contractor/vendor that must be signed by that person. The Executive Director will update the existing NMHC policies and procedures manual by adding the new thresholds for micro-purchases and small purchases. The Executive Director will also add explicit reference to the $25,000 threshold for vendors under procurement regulations regarding debarment and suspension. Corrective Action Plan Timeline: Management anticipates the above corrective action plan to be fully implemented by July 31, 2024. Designation Of Employee Position Responsible For Meeting Deadline: Personnel responsible for ensuring implementation include the Executive Director and Deputy Director.
2023-002 – PROCUREMENT, SUSPENSION, AND DEBARMENT COMPLIANCE Type of Finding: (F) – Significant Deficiency in Internal Control Over Compliance of Federal Awards Funding Agency: National Endowment for the Humanities Title: State Humanities Program and Humanities Councils American Rescue Plan Funding AL #: 45.129 Award #s: ZSO-283159-21 ARP, SO-268668-20 and SO-289867-23 Award Period: November 1, 2022 – October 31, 2023 Questioned Costs: None Statement of Condition The Council did not consistently follow the suspension and debarment policy and did not keep backup documentation for some of the procurement transactions over $10,000. Context The Council purchased goods and services exceeding $25,000 and documentation was not available to substantiate that the vendors were screened for suspension and debarment prior to expenditure. Note: All the vendors were screened during the audit and none of them had any exclusions. Also, the Council had documentation for all 6 sub-awardees tested (non-procurement clause of the award.) Criteria Per 2 CFR 200.320(a)(2)(i) Small purchases - (i) Small purchase procedures. The acquisition of property or services, the aggregate dollar amount of which is higher than the micro-purchase threshold ($10,000 in fiscal year 2023) but does not exceed the simplified acquisition threshold ($249,999 in fiscal year 2023). If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate by the non-Federal entity. Additionally, 2 CFR 200.214 requires vendors awarded contracts expected to equal or exceed $25,000 to be checked for suspension and debarment via the System for Award Management Exclusions (SAM.gov). According to §180.300 of Subpart C–Responsibilities of Participants Regarding Transactions Doing Business with Other Persons of 2 CFR Part 180, when the grantee enters into a covered transaction with another person at the next lower tier, they must verify that the person with whom they intend to do business is not excluded or disqualified. This can be done by: (a) Checking SAM Exclusions; or (b) Collecting a certification from that person; or (c) Adding a clause or condition to the covered transaction with that person. While the Council has policies in place and links in the policies to the appropriate CFRs, it seems that the policies might need to be updated to specify the thresholds for debarment and suspension checks for vendor and the updated threshold for micro-purchasing. Cause The Council had turnover in employment for staff in charge of obtaining 3 bids and documentation could not be located. The policies might need to be updated with the new micro-purchasing thresholds and clearly specify the thresholds for vendor check-ups in sam.gov. Effect There is the risk that the Council could contract with a party that is suspended or debarred. The Council is not following consistently the policies. Recommendation Design and implement internal controls to ensure that contracts expected to equal or exceed $25,000, or meet certain other criteria as specified in 2 CFR 180.220, are checked for suspension and debarment. Improve the policies and procedures manual by updating the thresholds for micro-purchases and small purchases, and adding explicit reference to the $25,000 threshold for vendors under procurement regulations regarding debarment and suspension. View of Responsible Official and Corrective Action Plan: NMHC management is in agreement with this finding. Management has reviewed the existing federal procurement policies and procedures found in 2 CFR 200 and will enforce the policies and procedures to ensure existing suspension and debarment policies and procedures are followed. NMHC’s Executive Director or Deputy Director will review all potential purchases and contracts for compliance with the policies. The Executive Director or Deputy Director will also provide an additional check by reviewing all vendors paid $25,000 or more against the SAM website. Proof of the SAM website review and approval will be maintained in each vendor file. All future contracts of any size will also include a clause or condition to the covered transaction with the contractor/vendor that must be signed by that person. The Executive Director will update the existing NMHC policies and procedures manual by adding the new thresholds for micro-purchases and small purchases. The Executive Director will also add explicit reference to the $25,000 threshold for vendors under procurement regulations regarding debarment and suspension. Corrective Action Plan Timeline: Management anticipates the above corrective action plan to be fully implemented by July 31, 2024. Designation Of Employee Position Responsible For Meeting Deadline: Personnel responsible for ensuring implementation include the Executive Director and Deputy Director.
2023-002 – PROCUREMENT, SUSPENSION, AND DEBARMENT COMPLIANCE Type of Finding: (F) – Significant Deficiency in Internal Control Over Compliance of Federal Awards Funding Agency: National Endowment for the Humanities Title: State Humanities Program and Humanities Councils American Rescue Plan Funding AL #: 45.129 Award #s: ZSO-283159-21 ARP, SO-268668-20 and SO-289867-23 Award Period: November 1, 2022 – October 31, 2023 Questioned Costs: None Statement of Condition The Council did not consistently follow the suspension and debarment policy and did not keep backup documentation for some of the procurement transactions over $10,000. Context The Council purchased goods and services exceeding $25,000 and documentation was not available to substantiate that the vendors were screened for suspension and debarment prior to expenditure. Note: All the vendors were screened during the audit and none of them had any exclusions. Also, the Council had documentation for all 6 sub-awardees tested (non-procurement clause of the award.) Criteria Per 2 CFR 200.320(a)(2)(i) Small purchases - (i) Small purchase procedures. The acquisition of property or services, the aggregate dollar amount of which is higher than the micro-purchase threshold ($10,000 in fiscal year 2023) but does not exceed the simplified acquisition threshold ($249,999 in fiscal year 2023). If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate by the non-Federal entity. Additionally, 2 CFR 200.214 requires vendors awarded contracts expected to equal or exceed $25,000 to be checked for suspension and debarment via the System for Award Management Exclusions (SAM.gov). According to §180.300 of Subpart C–Responsibilities of Participants Regarding Transactions Doing Business with Other Persons of 2 CFR Part 180, when the grantee enters into a covered transaction with another person at the next lower tier, they must verify that the person with whom they intend to do business is not excluded or disqualified. This can be done by: (a) Checking SAM Exclusions; or (b) Collecting a certification from that person; or (c) Adding a clause or condition to the covered transaction with that person. While the Council has policies in place and links in the policies to the appropriate CFRs, it seems that the policies might need to be updated to specify the thresholds for debarment and suspension checks for vendor and the updated threshold for micro-purchasing. Cause The Council had turnover in employment for staff in charge of obtaining 3 bids and documentation could not be located. The policies might need to be updated with the new micro-purchasing thresholds and clearly specify the thresholds for vendor check-ups in sam.gov. Effect There is the risk that the Council could contract with a party that is suspended or debarred. The Council is not following consistently the policies. Recommendation Design and implement internal controls to ensure that contracts expected to equal or exceed $25,000, or meet certain other criteria as specified in 2 CFR 180.220, are checked for suspension and debarment. Improve the policies and procedures manual by updating the thresholds for micro-purchases and small purchases, and adding explicit reference to the $25,000 threshold for vendors under procurement regulations regarding debarment and suspension. View of Responsible Official and Corrective Action Plan: NMHC management is in agreement with this finding. Management has reviewed the existing federal procurement policies and procedures found in 2 CFR 200 and will enforce the policies and procedures to ensure existing suspension and debarment policies and procedures are followed. NMHC’s Executive Director or Deputy Director will review all potential purchases and contracts for compliance with the policies. The Executive Director or Deputy Director will also provide an additional check by reviewing all vendors paid $25,000 or more against the SAM website. Proof of the SAM website review and approval will be maintained in each vendor file. All future contracts of any size will also include a clause or condition to the covered transaction with the contractor/vendor that must be signed by that person. The Executive Director will update the existing NMHC policies and procedures manual by adding the new thresholds for micro-purchases and small purchases. The Executive Director will also add explicit reference to the $25,000 threshold for vendors under procurement regulations regarding debarment and suspension. Corrective Action Plan Timeline: Management anticipates the above corrective action plan to be fully implemented by July 31, 2024. Designation Of Employee Position Responsible For Meeting Deadline: Personnel responsible for ensuring implementation include the Executive Director and Deputy Director.
2023-002 – PROCUREMENT, SUSPENSION, AND DEBARMENT COMPLIANCE Type of Finding: (F) – Significant Deficiency in Internal Control Over Compliance of Federal Awards Funding Agency: National Endowment for the Humanities Title: State Humanities Program and Humanities Councils American Rescue Plan Funding AL #: 45.129 Award #s: ZSO-283159-21 ARP, SO-268668-20 and SO-289867-23 Award Period: November 1, 2022 – October 31, 2023 Questioned Costs: None Statement of Condition The Council did not consistently follow the suspension and debarment policy and did not keep backup documentation for some of the procurement transactions over $10,000. Context The Council purchased goods and services exceeding $25,000 and documentation was not available to substantiate that the vendors were screened for suspension and debarment prior to expenditure. Note: All the vendors were screened during the audit and none of them had any exclusions. Also, the Council had documentation for all 6 sub-awardees tested (non-procurement clause of the award.) Criteria Per 2 CFR 200.320(a)(2)(i) Small purchases - (i) Small purchase procedures. The acquisition of property or services, the aggregate dollar amount of which is higher than the micro-purchase threshold ($10,000 in fiscal year 2023) but does not exceed the simplified acquisition threshold ($249,999 in fiscal year 2023). If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate by the non-Federal entity. Additionally, 2 CFR 200.214 requires vendors awarded contracts expected to equal or exceed $25,000 to be checked for suspension and debarment via the System for Award Management Exclusions (SAM.gov). According to §180.300 of Subpart C–Responsibilities of Participants Regarding Transactions Doing Business with Other Persons of 2 CFR Part 180, when the grantee enters into a covered transaction with another person at the next lower tier, they must verify that the person with whom they intend to do business is not excluded or disqualified. This can be done by: (a) Checking SAM Exclusions; or (b) Collecting a certification from that person; or (c) Adding a clause or condition to the covered transaction with that person. While the Council has policies in place and links in the policies to the appropriate CFRs, it seems that the policies might need to be updated to specify the thresholds for debarment and suspension checks for vendor and the updated threshold for micro-purchasing. Cause The Council had turnover in employment for staff in charge of obtaining 3 bids and documentation could not be located. The policies might need to be updated with the new micro-purchasing thresholds and clearly specify the thresholds for vendor check-ups in sam.gov. Effect There is the risk that the Council could contract with a party that is suspended or debarred. The Council is not following consistently the policies. Recommendation Design and implement internal controls to ensure that contracts expected to equal or exceed $25,000, or meet certain other criteria as specified in 2 CFR 180.220, are checked for suspension and debarment. Improve the policies and procedures manual by updating the thresholds for micro-purchases and small purchases, and adding explicit reference to the $25,000 threshold for vendors under procurement regulations regarding debarment and suspension. View of Responsible Official and Corrective Action Plan: NMHC management is in agreement with this finding. Management has reviewed the existing federal procurement policies and procedures found in 2 CFR 200 and will enforce the policies and procedures to ensure existing suspension and debarment policies and procedures are followed. NMHC’s Executive Director or Deputy Director will review all potential purchases and contracts for compliance with the policies. The Executive Director or Deputy Director will also provide an additional check by reviewing all vendors paid $25,000 or more against the SAM website. Proof of the SAM website review and approval will be maintained in each vendor file. All future contracts of any size will also include a clause or condition to the covered transaction with the contractor/vendor that must be signed by that person. The Executive Director will update the existing NMHC policies and procedures manual by adding the new thresholds for micro-purchases and small purchases. The Executive Director will also add explicit reference to the $25,000 threshold for vendors under procurement regulations regarding debarment and suspension. Corrective Action Plan Timeline: Management anticipates the above corrective action plan to be fully implemented by July 31, 2024. Designation Of Employee Position Responsible For Meeting Deadline: Personnel responsible for ensuring implementation include the Executive Director and Deputy Director.
2023-002 – PROCUREMENT, SUSPENSION, AND DEBARMENT COMPLIANCE Type of Finding: (F) – Significant Deficiency in Internal Control Over Compliance of Federal Awards Funding Agency: National Endowment for the Humanities Title: State Humanities Program and Humanities Councils American Rescue Plan Funding AL #: 45.129 Award #s: ZSO-283159-21 ARP, SO-268668-20 and SO-289867-23 Award Period: November 1, 2022 – October 31, 2023 Questioned Costs: None Statement of Condition The Council did not consistently follow the suspension and debarment policy and did not keep backup documentation for some of the procurement transactions over $10,000. Context The Council purchased goods and services exceeding $25,000 and documentation was not available to substantiate that the vendors were screened for suspension and debarment prior to expenditure. Note: All the vendors were screened during the audit and none of them had any exclusions. Also, the Council had documentation for all 6 sub-awardees tested (non-procurement clause of the award.) Criteria Per 2 CFR 200.320(a)(2)(i) Small purchases - (i) Small purchase procedures. The acquisition of property or services, the aggregate dollar amount of which is higher than the micro-purchase threshold ($10,000 in fiscal year 2023) but does not exceed the simplified acquisition threshold ($249,999 in fiscal year 2023). If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate by the non-Federal entity. Additionally, 2 CFR 200.214 requires vendors awarded contracts expected to equal or exceed $25,000 to be checked for suspension and debarment via the System for Award Management Exclusions (SAM.gov). According to §180.300 of Subpart C–Responsibilities of Participants Regarding Transactions Doing Business with Other Persons of 2 CFR Part 180, when the grantee enters into a covered transaction with another person at the next lower tier, they must verify that the person with whom they intend to do business is not excluded or disqualified. This can be done by: (a) Checking SAM Exclusions; or (b) Collecting a certification from that person; or (c) Adding a clause or condition to the covered transaction with that person. While the Council has policies in place and links in the policies to the appropriate CFRs, it seems that the policies might need to be updated to specify the thresholds for debarment and suspension checks for vendor and the updated threshold for micro-purchasing. Cause The Council had turnover in employment for staff in charge of obtaining 3 bids and documentation could not be located. The policies might need to be updated with the new micro-purchasing thresholds and clearly specify the thresholds for vendor check-ups in sam.gov. Effect There is the risk that the Council could contract with a party that is suspended or debarred. The Council is not following consistently the policies. Recommendation Design and implement internal controls to ensure that contracts expected to equal or exceed $25,000, or meet certain other criteria as specified in 2 CFR 180.220, are checked for suspension and debarment. Improve the policies and procedures manual by updating the thresholds for micro-purchases and small purchases, and adding explicit reference to the $25,000 threshold for vendors under procurement regulations regarding debarment and suspension. View of Responsible Official and Corrective Action Plan: NMHC management is in agreement with this finding. Management has reviewed the existing federal procurement policies and procedures found in 2 CFR 200 and will enforce the policies and procedures to ensure existing suspension and debarment policies and procedures are followed. NMHC’s Executive Director or Deputy Director will review all potential purchases and contracts for compliance with the policies. The Executive Director or Deputy Director will also provide an additional check by reviewing all vendors paid $25,000 or more against the SAM website. Proof of the SAM website review and approval will be maintained in each vendor file. All future contracts of any size will also include a clause or condition to the covered transaction with the contractor/vendor that must be signed by that person. The Executive Director will update the existing NMHC policies and procedures manual by adding the new thresholds for micro-purchases and small purchases. The Executive Director will also add explicit reference to the $25,000 threshold for vendors under procurement regulations regarding debarment and suspension. Corrective Action Plan Timeline: Management anticipates the above corrective action plan to be fully implemented by July 31, 2024. Designation Of Employee Position Responsible For Meeting Deadline: Personnel responsible for ensuring implementation include the Executive Director and Deputy Director.
2023-002 – PROCUREMENT, SUSPENSION, AND DEBARMENT COMPLIANCE Type of Finding: (F) – Significant Deficiency in Internal Control Over Compliance of Federal Awards Funding Agency: National Endowment for the Humanities Title: State Humanities Program and Humanities Councils American Rescue Plan Funding AL #: 45.129 Award #s: ZSO-283159-21 ARP, SO-268668-20 and SO-289867-23 Award Period: November 1, 2022 – October 31, 2023 Questioned Costs: None Statement of Condition The Council did not consistently follow the suspension and debarment policy and did not keep backup documentation for some of the procurement transactions over $10,000. Context The Council purchased goods and services exceeding $25,000 and documentation was not available to substantiate that the vendors were screened for suspension and debarment prior to expenditure. Note: All the vendors were screened during the audit and none of them had any exclusions. Also, the Council had documentation for all 6 sub-awardees tested (non-procurement clause of the award.) Criteria Per 2 CFR 200.320(a)(2)(i) Small purchases - (i) Small purchase procedures. The acquisition of property or services, the aggregate dollar amount of which is higher than the micro-purchase threshold ($10,000 in fiscal year 2023) but does not exceed the simplified acquisition threshold ($249,999 in fiscal year 2023). If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate by the non-Federal entity. Additionally, 2 CFR 200.214 requires vendors awarded contracts expected to equal or exceed $25,000 to be checked for suspension and debarment via the System for Award Management Exclusions (SAM.gov). According to §180.300 of Subpart C–Responsibilities of Participants Regarding Transactions Doing Business with Other Persons of 2 CFR Part 180, when the grantee enters into a covered transaction with another person at the next lower tier, they must verify that the person with whom they intend to do business is not excluded or disqualified. This can be done by: (a) Checking SAM Exclusions; or (b) Collecting a certification from that person; or (c) Adding a clause or condition to the covered transaction with that person. While the Council has policies in place and links in the policies to the appropriate CFRs, it seems that the policies might need to be updated to specify the thresholds for debarment and suspension checks for vendor and the updated threshold for micro-purchasing. Cause The Council had turnover in employment for staff in charge of obtaining 3 bids and documentation could not be located. The policies might need to be updated with the new micro-purchasing thresholds and clearly specify the thresholds for vendor check-ups in sam.gov. Effect There is the risk that the Council could contract with a party that is suspended or debarred. The Council is not following consistently the policies. Recommendation Design and implement internal controls to ensure that contracts expected to equal or exceed $25,000, or meet certain other criteria as specified in 2 CFR 180.220, are checked for suspension and debarment. Improve the policies and procedures manual by updating the thresholds for micro-purchases and small purchases, and adding explicit reference to the $25,000 threshold for vendors under procurement regulations regarding debarment and suspension. View of Responsible Official and Corrective Action Plan: NMHC management is in agreement with this finding. Management has reviewed the existing federal procurement policies and procedures found in 2 CFR 200 and will enforce the policies and procedures to ensure existing suspension and debarment policies and procedures are followed. NMHC’s Executive Director or Deputy Director will review all potential purchases and contracts for compliance with the policies. The Executive Director or Deputy Director will also provide an additional check by reviewing all vendors paid $25,000 or more against the SAM website. Proof of the SAM website review and approval will be maintained in each vendor file. All future contracts of any size will also include a clause or condition to the covered transaction with the contractor/vendor that must be signed by that person. The Executive Director will update the existing NMHC policies and procedures manual by adding the new thresholds for micro-purchases and small purchases. The Executive Director will also add explicit reference to the $25,000 threshold for vendors under procurement regulations regarding debarment and suspension. Corrective Action Plan Timeline: Management anticipates the above corrective action plan to be fully implemented by July 31, 2024. Designation Of Employee Position Responsible For Meeting Deadline: Personnel responsible for ensuring implementation include the Executive Director and Deputy Director.
Space Operations Assistance Listing Number: 43.007 Federal Award ID Number: 80JSC018M0005 National Aeronautics and Space Administration 2023 Funding Criteria: Competitive Procurement: 2 CFR Section 200.320 and 48 CFR section 52.244-5 sets forth the requirements for acquisition contracts awarded to vendors including the requirement to obtain price or rate quotations from an adequate number of qualified sources and the circumstances in which noncompetitive procurement methods can be used. Also, CASIS’s procurement policy states that it is in both CASIS and NASA’s interest to compete when it makes sense regardless of the threshold and can be achieved by obtaining three quotes, i.e., comparative shopping. A minimum of 3 vendors are required to demonstrate competition. CASIS may solicit a proposal from only one source in circumstances where one or more of the following conditions apply (FAR Subpart 6.3): (i) The item or service is available only from a single source. (ii) An unanticipated exigency or emergency exists that requires the equipment, materials, supplies or services to be procured immediately. (iii) NASA specifically authorizes the use of noncompetitive proposals (directed source). (iv) After consultation with a number of sources, competition is determined inadequate. (v) The vendor is listed as a sole source provider under the Cooperative Agreement. Vendor disbursements: 2 CFR section 200.214 and 2 CFR section 180.300 require non-federal entities restrict awards, subawards, and contracts with parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Internal controls: 2 CFR 200.303 provides that non-Federal entities must establish and maintain effective internal controls to provide reasonable assurance of compliance with the Uniform Guidance. - 10 - Condition: Competitive quotes were not obtained for one expense, and sole source determination was not documented for another expense. In addition, for one vendor there was no check performed to ensure it was not debarred prior to the purchase approval. Cause: For one expense, CASIS did not obtain competitive quotes as required per their policy. CASIS had used the venue for meetings in the past, and did not obtain additional quotes for this event. This is a control and compliance deficiency. For another expense tested in the sample, no documentation of this being a sole source purchase prior to expending the funds. This expense is for a membership and essentially has a single provider. This is a control deficiency, but not a compliance issue. For one vendor, CASIS did not perform SAM check prior to approving the purchase. Vendor search at SAM.gov, subsequent to year end, revealed that the vendor is not debarred. This is a control deficiency, but not a compliance issue. Effect: If CASIS cannot demonstrate that procurements were made with full and open competition, properly sole sourced, and vendors are not debarred, it can result in questioned costs and funds being returned to NASA. Questioned Costs: Known questioned costs of $17,967, and likely questioned costs of $25,293. Perspective: For open competition there were 2 out of 60 expenses selected that the control failed. There was one vendor out of 10 selected that the debarment check was not performed. Recommendation: Competitive quotes should be obtained and retained as specified in the procurement policy. Non-competitive procurement should be documented and approved prior to incurring expenses. Vendor debarment checks should be performed and documented prior to entering into covered transactions. Management Response: The audit uncovered a non-compliance with required competitive quotes for a procurement of meeting services which did not comply with CASIS policy. The predecessor management team had previously advised the responsible purchaser that these services did not require competitive quotes. This matter is also complicated by the fact that the procurements are not just for meeting space, logistics and meals, but also includes lodging, which is not subject to the three quote rule. Management acknowledges that this was a process escapement and provides for the following corrective action. Typically lodging expenses are included in the procurement because it results in discounts that are unavailable if not included. CASIS implemented a policy of requiring competitive quotes for purchases over $1,000 in the most recent revision of the procurement policy. This change was made to assure compliance with Federal Regulations. While the amount noted is within the limits established by Federal Micro- purchase regulations, it did not comply with internal policies as noted. Meeting space is a commonly used service that is highly competitive in pricing and most facilities charge competitive rates, but most of the time those quotes are not useable given the time of year, and more importantly the occupancy rate of the facility. Starting in 2024, we are requesting quotes from three facilities in the local area that will be valid for a period of one year. These rates will be updated manually and a single additional quote will be obtained to assure the “reasonableness” of the price. This process will represent an annual price survey that will satisfy the three quote rule of our procurement policy. For rental of facilities outside of the local area, we will obtain a minimum of three quotes as required by our procurement policy. Management also acknowledges the process escapement for SAM checks on new vendors. Our normal process is that annually, Finance performs a SAM check for all approved vendors. The agreement for Trust Factory came in late during the year resulting in this deficiency. When a new vendor is setup in our system, it will automatically trigger a SAM check.
Finding No.: 2023-002 Federal Agency: Various AL Program: COVID-19 – 84.425 Education Stabilization Fund R&D Cluster Federal Award No.: Various Area: Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The University represented that it performs regular verification from SAM Exclusions, however, no formal documentation is kept on procurement files as evidence of procedures performed. Cause: The University did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The University is in noncompliance with the applicable requirement. Recommendation: The University should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: See Corrective Action Plan.
Finding No.: 2023-002 Federal Agency: Various AL Program: COVID-19 – 84.425 Education Stabilization Fund R&D Cluster Federal Award No.: Various Area: Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The University represented that it performs regular verification from SAM Exclusions, however, no formal documentation is kept on procurement files as evidence of procedures performed. Cause: The University did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The University is in noncompliance with the applicable requirement. Recommendation: The University should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: See Corrective Action Plan.
Finding No.: 2023-002 Federal Agency: Various AL Program: COVID-19 – 84.425 Education Stabilization Fund R&D Cluster Federal Award No.: Various Area: Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The University represented that it performs regular verification from SAM Exclusions, however, no formal documentation is kept on procurement files as evidence of procedures performed. Cause: The University did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The University is in noncompliance with the applicable requirement. Recommendation: The University should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: See Corrective Action Plan.
Finding No.: 2023-002 Federal Agency: Various AL Program: COVID-19 – 84.425 Education Stabilization Fund R&D Cluster Federal Award No.: Various Area: Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The University represented that it performs regular verification from SAM Exclusions, however, no formal documentation is kept on procurement files as evidence of procedures performed. Cause: The University did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The University is in noncompliance with the applicable requirement. Recommendation: The University should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: See Corrective Action Plan.
Finding No.: 2023-002 Federal Agency: Various AL Program: COVID-19 – 84.425 Education Stabilization Fund R&D Cluster Federal Award No.: Various Area: Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The University represented that it performs regular verification from SAM Exclusions, however, no formal documentation is kept on procurement files as evidence of procedures performed. Cause: The University did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The University is in noncompliance with the applicable requirement. Recommendation: The University should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: See Corrective Action Plan.
Finding No.: 2023-002 Federal Agency: Various AL Program: COVID-19 – 84.425 Education Stabilization Fund R&D Cluster Federal Award No.: Various Area: Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The University represented that it performs regular verification from SAM Exclusions, however, no formal documentation is kept on procurement files as evidence of procedures performed. Cause: The University did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The University is in noncompliance with the applicable requirement. Recommendation: The University should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: See Corrective Action Plan.
Finding No.: 2023-002 Federal Agency: Various AL Program: COVID-19 – 84.425 Education Stabilization Fund R&D Cluster Federal Award No.: Various Area: Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The University represented that it performs regular verification from SAM Exclusions, however, no formal documentation is kept on procurement files as evidence of procedures performed. Cause: The University did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The University is in noncompliance with the applicable requirement. Recommendation: The University should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: See Corrective Action Plan.
Finding No.: 2023-002 Federal Agency: Various AL Program: COVID-19 – 84.425 Education Stabilization Fund R&D Cluster Federal Award No.: Various Area: Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The University represented that it performs regular verification from SAM Exclusions, however, no formal documentation is kept on procurement files as evidence of procedures performed. Cause: The University did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The University is in noncompliance with the applicable requirement. Recommendation: The University should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: See Corrective Action Plan.
Finding No.: 2023-002 Federal Agency: Various AL Program: COVID-19 – 84.425 Education Stabilization Fund R&D Cluster Federal Award No.: Various Area: Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The University represented that it performs regular verification from SAM Exclusions, however, no formal documentation is kept on procurement files as evidence of procedures performed. Cause: The University did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The University is in noncompliance with the applicable requirement. Recommendation: The University should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: See Corrective Action Plan.
Finding No.: 2023-002 Federal Agency: Various AL Program: COVID-19 – 84.425 Education Stabilization Fund R&D Cluster Federal Award No.: Various Area: Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The University represented that it performs regular verification from SAM Exclusions, however, no formal documentation is kept on procurement files as evidence of procedures performed. Cause: The University did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The University is in noncompliance with the applicable requirement. Recommendation: The University should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: See Corrective Action Plan.
Finding No.: 2023-002 Federal Agency: Various AL Program: COVID-19 – 84.425 Education Stabilization Fund R&D Cluster Federal Award No.: Various Area: Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The University represented that it performs regular verification from SAM Exclusions, however, no formal documentation is kept on procurement files as evidence of procedures performed. Cause: The University did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The University is in noncompliance with the applicable requirement. Recommendation: The University should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: See Corrective Action Plan.
Finding No.: 2023-002 Federal Agency: Various AL Program: COVID-19 – 84.425 Education Stabilization Fund R&D Cluster Federal Award No.: Various Area: Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The University represented that it performs regular verification from SAM Exclusions, however, no formal documentation is kept on procurement files as evidence of procedures performed. Cause: The University did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The University is in noncompliance with the applicable requirement. Recommendation: The University should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: See Corrective Action Plan.
Finding No.: 2023-002 Federal Agency: Various AL Program: COVID-19 – 84.425 Education Stabilization Fund R&D Cluster Federal Award No.: Various Area: Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The University represented that it performs regular verification from SAM Exclusions, however, no formal documentation is kept on procurement files as evidence of procedures performed. Cause: The University did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The University is in noncompliance with the applicable requirement. Recommendation: The University should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: See Corrective Action Plan.
Finding No.: 2023-002 Federal Agency: Various AL Program: COVID-19 – 84.425 Education Stabilization Fund R&D Cluster Federal Award No.: Various Area: Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The University represented that it performs regular verification from SAM Exclusions, however, no formal documentation is kept on procurement files as evidence of procedures performed. Cause: The University did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The University is in noncompliance with the applicable requirement. Recommendation: The University should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: See Corrective Action Plan.
Finding No.: 2023-002 Federal Agency: Various AL Program: COVID-19 – 84.425 Education Stabilization Fund R&D Cluster Federal Award No.: Various Area: Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The University represented that it performs regular verification from SAM Exclusions, however, no formal documentation is kept on procurement files as evidence of procedures performed. Cause: The University did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The University is in noncompliance with the applicable requirement. Recommendation: The University should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: See Corrective Action Plan.
Finding No.: 2023-002 Federal Agency: Various AL Program: COVID-19 – 84.425 Education Stabilization Fund R&D Cluster Federal Award No.: Various Area: Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The University represented that it performs regular verification from SAM Exclusions, however, no formal documentation is kept on procurement files as evidence of procedures performed. Cause: The University did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The University is in noncompliance with the applicable requirement. Recommendation: The University should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: See Corrective Action Plan.
Finding No.: 2023-002 Federal Agency: Various AL Program: COVID-19 – 84.425 Education Stabilization Fund R&D Cluster Federal Award No.: Various Area: Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The University represented that it performs regular verification from SAM Exclusions, however, no formal documentation is kept on procurement files as evidence of procedures performed. Cause: The University did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The University is in noncompliance with the applicable requirement. Recommendation: The University should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: See Corrective Action Plan.
Finding No.: 2023-002 Federal Agency: Various AL Program: COVID-19 – 84.425 Education Stabilization Fund R&D Cluster Federal Award No.: Various Area: Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The University represented that it performs regular verification from SAM Exclusions, however, no formal documentation is kept on procurement files as evidence of procedures performed. Cause: The University did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The University is in noncompliance with the applicable requirement. Recommendation: The University should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: See Corrective Action Plan.
Finding No.: 2023-002 Federal Agency: Various AL Program: COVID-19 – 84.425 Education Stabilization Fund R&D Cluster Federal Award No.: Various Area: Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The University represented that it performs regular verification from SAM Exclusions, however, no formal documentation is kept on procurement files as evidence of procedures performed. Cause: The University did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The University is in noncompliance with the applicable requirement. Recommendation: The University should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: See Corrective Action Plan.
Finding No.: 2023-002 Federal Agency: Various AL Program: COVID-19 – 84.425 Education Stabilization Fund R&D Cluster Federal Award No.: Various Area: Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The University represented that it performs regular verification from SAM Exclusions, however, no formal documentation is kept on procurement files as evidence of procedures performed. Cause: The University did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The University is in noncompliance with the applicable requirement. Recommendation: The University should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: See Corrective Action Plan.
Finding No.: 2023-002 Federal Agency: Various AL Program: COVID-19 – 84.425 Education Stabilization Fund R&D Cluster Federal Award No.: Various Area: Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The University represented that it performs regular verification from SAM Exclusions, however, no formal documentation is kept on procurement files as evidence of procedures performed. Cause: The University did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The University is in noncompliance with the applicable requirement. Recommendation: The University should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: See Corrective Action Plan.
Finding No.: 2023-002 Federal Agency: Various AL Program: COVID-19 – 84.425 Education Stabilization Fund R&D Cluster Federal Award No.: Various Area: Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The University represented that it performs regular verification from SAM Exclusions, however, no formal documentation is kept on procurement files as evidence of procedures performed. Cause: The University did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The University is in noncompliance with the applicable requirement. Recommendation: The University should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: See Corrective Action Plan.
Finding No.: 2023-002 Federal Agency: Various AL Program: COVID-19 – 84.425 Education Stabilization Fund R&D Cluster Federal Award No.: Various Area: Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The University represented that it performs regular verification from SAM Exclusions, however, no formal documentation is kept on procurement files as evidence of procedures performed. Cause: The University did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The University is in noncompliance with the applicable requirement. Recommendation: The University should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: See Corrective Action Plan.
Finding No.: 2023-002 Federal Agency: Various AL Program: COVID-19 – 84.425 Education Stabilization Fund R&D Cluster Federal Award No.: Various Area: Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The University represented that it performs regular verification from SAM Exclusions, however, no formal documentation is kept on procurement files as evidence of procedures performed. Cause: The University did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The University is in noncompliance with the applicable requirement. Recommendation: The University should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: See Corrective Action Plan.
Finding No.: 2023-002 Federal Agency: Various AL Program: COVID-19 – 84.425 Education Stabilization Fund R&D Cluster Federal Award No.: Various Area: Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The University represented that it performs regular verification from SAM Exclusions, however, no formal documentation is kept on procurement files as evidence of procedures performed. Cause: The University did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The University is in noncompliance with the applicable requirement. Recommendation: The University should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: See Corrective Action Plan.
Finding No.: 2023-002 Federal Agency: Various AL Program: COVID-19 – 84.425 Education Stabilization Fund R&D Cluster Federal Award No.: Various Area: Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The University represented that it performs regular verification from SAM Exclusions, however, no formal documentation is kept on procurement files as evidence of procedures performed. Cause: The University did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The University is in noncompliance with the applicable requirement. Recommendation: The University should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: See Corrective Action Plan.
Finding No.: 2023-002 Federal Agency: Various AL Program: COVID-19 – 84.425 Education Stabilization Fund R&D Cluster Federal Award No.: Various Area: Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The University represented that it performs regular verification from SAM Exclusions, however, no formal documentation is kept on procurement files as evidence of procedures performed. Cause: The University did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The University is in noncompliance with the applicable requirement. Recommendation: The University should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: See Corrective Action Plan.
Finding No.: 2023-002 Federal Agency: Various AL Program: COVID-19 – 84.425 Education Stabilization Fund R&D Cluster Federal Award No.: Various Area: Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The University represented that it performs regular verification from SAM Exclusions, however, no formal documentation is kept on procurement files as evidence of procedures performed. Cause: The University did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The University is in noncompliance with the applicable requirement. Recommendation: The University should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: See Corrective Action Plan.
Finding No.: 2023-002 Federal Agency: Various AL Program: COVID-19 – 84.425 Education Stabilization Fund R&D Cluster Federal Award No.: Various Area: Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The University represented that it performs regular verification from SAM Exclusions, however, no formal documentation is kept on procurement files as evidence of procedures performed. Cause: The University did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The University is in noncompliance with the applicable requirement. Recommendation: The University should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: See Corrective Action Plan.
Finding No.: 2023-002 Federal Agency: Various AL Program: COVID-19 – 84.425 Education Stabilization Fund R&D Cluster Federal Award No.: Various Area: Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The University represented that it performs regular verification from SAM Exclusions, however, no formal documentation is kept on procurement files as evidence of procedures performed. Cause: The University did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The University is in noncompliance with the applicable requirement. Recommendation: The University should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: See Corrective Action Plan.
Finding No.: 2023-002 Federal Agency: Various AL Program: COVID-19 – 84.425 Education Stabilization Fund R&D Cluster Federal Award No.: Various Area: Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The University represented that it performs regular verification from SAM Exclusions, however, no formal documentation is kept on procurement files as evidence of procedures performed. Cause: The University did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The University is in noncompliance with the applicable requirement. Recommendation: The University should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: See Corrective Action Plan.
Finding No.: 2023-002 Federal Agency: Various AL Program: COVID-19 – 84.425 Education Stabilization Fund R&D Cluster Federal Award No.: Various Area: Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The University represented that it performs regular verification from SAM Exclusions, however, no formal documentation is kept on procurement files as evidence of procedures performed. Cause: The University did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The University is in noncompliance with the applicable requirement. Recommendation: The University should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: See Corrective Action Plan.