Finding Text
Suspension and Debarment
Federal Award Identification
Assistance Listing Program Title: Formula Grants for Rural Areas
Assistance Listing Program Number: 20.509
Federal Award ID Number and Year: Various
Federal Agency: U.S. Department of Transportation
Pass-Through Entity: Nebraska Department of Transportation
Criteria
The Organization’s procurement policy states that all vendors will be checked against the
exclusion list on the System for Award Management website. This policy is in accordance
with 2 CFR 200.212; 2 CFR 200.318(h); 2 CFR 180.300; 48 CFR 52.209-6.
Condition
The Organization neglected to comply with its procurement policy when entering into a
covered transaction.
Repeat Finding
No.
Cause
For the instance in violation of the Organization’s procurement policy, allowable
emergency procurement procedures were followed due to an urgent need for the
vendor’s services.
Effect or Potential Effect
The Organization may enter into a covered transaction with a debarred, suspended, or
otherwise excluded vendor.
Questioned Costs
No.
Statistical Sample
No.
Context
As described in Finding 2023-002, the Organization was the victim of fraud during the
fiscal year. In the wake of this event, the Organization hired a 3rd party accountant to
assist in the cleanup of the financial records. In the procurement of this accountant, the
Organization followed provisions in 2 CFR 200.320(c)(3) which allowed the Organization to
quickly engage with the accountant due to the emergent nature of the situation.
However, the provisions of 2 CFR 200.320(c)(3) relate to the procurement of vendors, and
not to the suspension and debarment of vendors. In this emergency procurement process,
the Organization neglected to check the accountant against the exclusion list on the
System for Award Management website. The auditor performed a search on this website,
noting that the accountant is not on the exclusion list.
Recommendation
The auditor recommends that, even during emergency procurement procedures, the
Organization check its vendors against the exclusion list on the System for Award
Management website.
Views of Responsible Officials
See Corrective Action Plan, below.