Finding 1061930 (2023-009)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-08-30

AI Summary

  • Core Issue: The Organization failed to verify that vendors were not suspended or debarred from federal funding.
  • Impacted Requirements: This oversight violates 2 CFR §180.300, which mandates verification against the Excluded Parties List System.
  • Recommended Follow-Up: Update policies to ensure all vendors are confirmed eligible for federal funds, as management agrees with this recommendation.

Finding Text

Program Affected 66.818 Brownfields Assessment and Cleanup Cooperative Agreements U.S. Environmental Protection Agency Contract year: 2023 FAIN: 00A00664 / 00A00676 / 00A00909 Criteria 2 CFR §180.300 mandates that when a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity is not suspended or debarred or otherwise excluded from participating in the transaction. Condition and Context The Organization did not perform a verification that its vendors were not included on the Excluded Parties List System maintained by the General Services Administration. During our nonstatistical sampling of vendors, we noted 2 of 2 vendors tested were not verified against the Excluded Parties List System. Cause and Effect The Organization does not have internal processes to properly identify excluded parties ineligible to receive federal funds. However, our sample did not identify unallowable costs charged to the grant related to excluded parties. Questioned Costs N/A Identification of Repeat Findings 2022-012 Recommendation We recommend the Organization update its policies and procedures to require confirmation that all vendors are eligible to receive federal funds. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding. See attached Planned Corrective Actions.

Categories

Allowable Costs / Cost Principles Procurement, Suspension & Debarment

Other Findings in this Audit

  • 485488 2023-009
    Material Weakness Repeat
  • 485489 2023-010
    Material Weakness Repeat
  • 485490 2023-011
    Material Weakness
  • 485491 2023-009
    Material Weakness Repeat
  • 485492 2023-010
    Material Weakness Repeat
  • 485493 2023-011
    Material Weakness
  • 485494 2023-009
    Material Weakness Repeat
  • 485495 2023-010
    Material Weakness Repeat
  • 485496 2023-011
    Material Weakness
  • 1061931 2023-010
    Material Weakness Repeat
  • 1061932 2023-011
    Material Weakness
  • 1061933 2023-009
    Material Weakness Repeat
  • 1061934 2023-010
    Material Weakness Repeat
  • 1061935 2023-011
    Material Weakness
  • 1061936 2023-009
    Material Weakness Repeat
  • 1061937 2023-010
    Material Weakness Repeat
  • 1061938 2023-011
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $944,913
90.601 Northern Border Regional Development $10,841