Finding 1075330 (2023-001)

Finding 2023-001— Suspension and Debarment (Significant Deficiency) Major Programs Affected – CFDAL Number Program Name Award Number Award Year Questioned Costs 11.438 Department of Commerce (DOC) – Pacific Coast Salmon Recovery Multiple 2023 N/A Criteria – Non-federal entities are prohibited from contracting with or making sub-awards 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 section 180.220. Condition and Context – During our testing of two vendor files, we noted both vendors files had no evidence of review of the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) to ensure that the vendors were not suspended or debarred before the Tribe entered into contracts with those vendors. We noted that one vendor had a self-certify clause that they are not suspended or debarred included in the final contract; no such self-certification was noted for the second vendor. However, based on our testing, we noted none of the vendors were suspended or debarred. Cause – The programs did not follow the Tribe’s procurement policy’s documentation requirement to indicate verification of checking the vendors for suspension and debarment. Effect – The Tribe could be at risk for contracting with vendors that have been suspended or debarred from governmental contracts. Recommendation – We understand that the Tribe has already implemented a procedure to enhance current practice and will be including a printed verification from SAM.gov in the vendor’s procurement file. We recommend the Tribe implement a supervisory review of the vendor files to ensure all procurement-related documents are maintained in accordance with the Tribe’s policy. Views of responsible officials – See the Tribe’s Corrective Action Plan.