Finding 1055942 (2023-003)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-07-26

AI Summary

  • Core Issue: The Center purchased goods over $25,000 without verifying the vendor's status with the federal government.
  • Impacted Requirements: Federal guidelines require checking if vendors are suspended or excluded before using federal funds.
  • Recommended Follow-Up: Strengthen internal controls by verifying vendor status through the System for Award Management (SAM) before making large purchases.

Finding Text

Federal Program: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing #93.323). Criteria: When a sub-recipient of federal awards uses federal money to acquire goods and services expected to cost more than $25,000, the sub-recipient must determine if the vendor is suspended, debarred, or otherwise excluded from doing business with the federal government. Condition: The Center purchased goods from one vendor totaling greater than $25,000 that required the Center to determine the vendor's status with the federal government. the vendor was, in fact, not an excluded party. The center needs to strengthen their internal control in place to ensure all vendors are verified before the disbursements are made. Cause: Management oversight. Effect: Even though the Center did comply with the requirements not to purchase goods with excluded parties, failing to check the excluded parties list increases the risk that the Center will make payments to ineligible vendors and potentially claim inappropriate reimbursement. Questioned Costs: None. Repeat Finding: No. Recommendation: We recommend the Center verify a vendor's status by checking the Systemf or Award Management (SAM) maintained by the General Services Administration before making purchases expected to exceed $25,000 and paid with federal grants. Views of Responsible Officials: TheCenter will verify all vendors' status using the System for Award Management (SAM) maintained by the General Services Administration before making purchases expected to exceed $25,000.

Categories

Procurement, Suspension & Debarment Internal Control / Segregation of Duties Subrecipient Monitoring Cash Management Eligibility

Other Findings in this Audit

  • 479500 2023-003
    Material Weakness
  • 479501 2023-003
    Material Weakness
  • 1055943 2023-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.217 Family Planning_services $230,676
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $162,821
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $51,323
93.767 Children's Health Insurance Program $29,111
93.069 Public Health Emergency Preparedness $19,333
93.994 Maternal and Child Health Services Block Grant to the States $15,284
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $2,355
93.575 Child Care and Development Block Grant $2,310
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $1,236