Finding 1074755 (2023-002)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-09-25
Audit: 321061
Organization: East Central Energy (MN)

AI Summary

  • Core Issue: East Central Energy and Subsidiaries is not checking if contractors are suspended or debarred, risking non-compliance.
  • Impacted Requirements: Compliance with 2 CFR part 180.220, which prohibits contracting with suspended or debarred parties.
  • Recommended Follow-Up: Develop and implement a policy to verify contractor status against the suspended or debarred parties list.

Finding Text

Federal Program Coronavirus Capital Projects Fund (AL 21.029) Procurement Suspended and Debarred Parties Significant Deficiency Criteria Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g. grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR part 180.220. Condition East Central Energy and Subsidiaries is not currently reviewing parties they are contracting with to ensure they are not suspended or debarred. It is noted, however, that no contractors hired by East Central Energy and Subsidiaries were listed on the suspended or debarred parties listing. Cause East Central Energy and Subsidiaries does not have written policies or procedures addressing contracting with suspended or debarred parties Questioned Costs None Context East Central Energy and Subsidiaries contracted with two contractors during the year. We tested both of these contractors and found both were not included on the suspended and debarred parties listing. Effect Non-compliance with Suspension & Debarment compliance requirements. This could result in East Central Energy and Subsidiaries contracting with a suspended or debarred party. Repeat Finding This is not a repeat finding. Recommendation Recommend for East Central Energy and Subsidiaries to create and implement a policy that to ensure all contracted parties are not included on the Federal suspended or debarred party listing, in accordance with 2 CFR part 180.220. Views of Responsible Officials East Central Energy and Subsidiaries agrees with the recommendation.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 498310 2023-001
    Significant Deficiency
  • 498311 2023-002
    Significant Deficiency
  • 498312 2023-001
    Significant Deficiency
  • 498313 2023-002
    Significant Deficiency
  • 498314 2023-001
    Significant Deficiency
  • 498315 2023-002
    Significant Deficiency
  • 498316 2023-001
    Significant Deficiency
  • 498317 2023-002
    Significant Deficiency
  • 1074752 2023-001
    Significant Deficiency
  • 1074753 2023-002
    Significant Deficiency
  • 1074754 2023-001
    Significant Deficiency
  • 1074756 2023-001
    Significant Deficiency
  • 1074757 2023-002
    Significant Deficiency
  • 1074758 2023-001
    Significant Deficiency
  • 1074759 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.029 Coronavirus Capital Projects Fund $228,166
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $3,913