Finding Text
Finding 2022-001Criteria: Under the suspension and debarment compliance requirement, an entity is required to ensure, on an annual basis, that parties providing goods or services under covered transactions are not suspended or debarred from receiving Federal funds.Condition: The Companies do not have a process in place to verify, on an annual basis, that all parties (whether vendors, subcontractors or subrecipients) providing goods and services to the Companies federal programs under covered transactions have not been suspended or debarred.Cause: Management was unaware that the suspension and debarment process is to be performed an annual basis.Effect: This omission could result in the Companies conducting business with parties who have been suspended or debarred.Recommendation: Management should create a process to ensure, on an annual basis, that parties are notdebarred from receiving Federal funds. The process can include internal verification of recipient eligibility through the use of an official government website such as SAM.gov, or could be done via the employ of an outside service provider.