Finding 1075938 (2023-002)

Identification of the federal program: 21.027 – Coronavirus State and Local Fiscal Recovery Funds Criteria: Processes and procedures should be in place to ensure when United Way enters into a transaction with another entity for the purchase of goods or services, that United Way is checking the suspended and debarred list and maintaining documentation that this verification occurred. Condition: United Way did not maintain documentation supporting the assertion the suspended and debarred list was checked prior to awarding a contract for services. Cause: Internal control processes and procedures were not in place to ensure the suspended and debarred list was checked prior to awarding a contract. Effect: United Way could contract with an entity for goods and services which is barred from performing work with state or federal funds. Questioned Costs: None. Recommendations: United Way should implement processes, procedures, and controls to ensure the suspended and debarred list is checked prior to awarding a contract and should maintain documentation this check occurred. Views of Responsible Officials: United Way agrees with the finding above. United Way notes that they vetted their contractors, including evaluation of bonding to meet normal due diligence involved in hiring a contractor. In addition, for federal funds requirements, United Way will develop processes and procedures to ensure the suspended and debarred list is checked prior to awarding a contract and ensure documentation is maintained.