Core Issue: The Organization lacks internal controls to prevent contracting with suspended or disbarred vendors.
Impacted Requirements: This violates CFR Title 2, part 180.220, which prohibits such transactions.
Recommended Follow-Up: Implement internal controls to ensure compliance with vendor suspension and debarment regulations.
Finding Text
The Code of Federal Regulations (CFR) Title 2, part 180.220 states that non-Federal entities are prohibited from contracting with or making sub-awards under covered transactions to parties that are suspended or disbarred. The Organization did not have internal controls in place over vendor suspension and debarment.
Corrective Action Plan
Management agrees and will implement procedures to verify and ensure all vendors have not been suspended or debarred prior to doing business with the entity.