Finding Text
Finding 2023-001 Suspension and Debarment
Federal Program: ALN 98.U01
Criteria: Recipients of U.S. Government funds must adhere to specific requirements on screening
all potential vendors, suppliers and sub-contractors/grantees to ensure the organization is not
conducting business with excluded parties (as defined by the U.S. Government); the screening
must be documented in writing.
Condition: During the first three quarters of the year under audit, the Foundation did not perform
and/or adequately document the screening process for payments made with Federal funds. Our
audit procedures consisted of substantive testwork over a sample of expenditures paid during the
year that were selected based on a representative sample of the population.
Context: Payments were made during the first three quarters of the year by the Foundation without
performing and/or adequately documenting the screening process.
Effect: Failure to screen potential vendors, suppliers, employees, fellows or other non-contracted
Federal transactions against the suspended and debarred list increases the possibility that U.S.
Government funds may inadvertently be provided to individuals or organizations deemed to be
excluded parties by the U.S. Government.
Cause: The Foundation did not have adequate policies and procedures in place during the first
three quarters of the year to perform and document the screening process.
Questioned Costs: Undetermined.
Repeat Finding: Finding 2022-001.
Recommendation: This was first brought to management's attention during the fiscal year 2022
audit, which occurred during fiscal year 2023. At that time, we recommended management of the
Foundation strengthen the policy surrounding the screening process for all contracted and noncontracted
transactions including, but not limited to, with vendors, suppliers, employees, and
fellows. Furthermore, we recommended that management communicate these policies and
procedures to employees of the organization, and it should stress the importance of documenting
compliance with the “Suspension and Debarment” provisions. Finally, we recommended the
screening of potential vendors and suppliers should be completed (and documented) prior to
entering into the transactions or making payments. We noted management took steps by the end of
fiscal year 2023 to address these recommendations and remediate the finding.