Finding Text
2023-003 INTERNAL CONTROLS OVER COMPLIANCE OF SUSPENSION AND DEBARMENT
Criteria: Federal grant agreements and contracts require ensuring vendors are not suspended or debarred by the Federal government.
Condition: During our testing we found that 2 of the 25 transactions had not been properly checked to ensure that the vendor was not suspended nor debarred prior to making payment. Management as since verified that these vendors are not suspended or debarred.
Cause: The Organization did have procedures in place to check vendors for suspension and debarment, but controls were missed for an instance of evaluation and appears to be an oversight.
Effects: The Organization could do business with a vendor which has been suspended or debarred resulting in non-compliance with federal awards and subject federal dollars to possible fraud, waste, or abuse.
Recommendation: We recommend that management implements a comprehensive plan to ensure that all vendors are checked for suspension/debarment prior to making payment.