Finding Text
2024-001 Procurement and Suspension and Debarment
Federal Program: U.S. Department of Education, Special Education Cluster – Assistance Listing Number 84.027, 84.173
Criteria: Non-federal entities are prohibited from contracting with 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. When a non-federal entity enters into a covered transaction, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov, (2) receiving a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300).
Condition: During our testing of compliance with the suspension and debarment regulations, the School Board was unable to provide documentation of its conclusion that one vendor was not suspended or debarred. The universe (population) from which the items were selected was all vendor payments during the year ended June 30, 2024 over $25,000 consisting of one vendor. Based on a review of SAM.gov, this vendor was not suspended or debarred.
Questioned Costs: None
Cause: Management does not have adequate controls in place to ensure that its determination of whether vendors are suspended or debarred are documented for all covered transactions.
Effect: Without ensuring documentation is maintained over whether a vendor is suspended or debarred, the School Board may enter into contracts with unauthorized parties.
Recommendation: We recommend that the School Board review of all contracts to ensure the appropriate language exits regarding suspension and debarment regulations, and the School Board should consider an annual review of SAM.gov for all vendors are paid from federal grants.
View of Responsible Official: Management will review standing contracts regarding suspension and debarment regulations to ensure that appropriate language exists. In addition, the School Board will review vendors paid with federal grants and search SAM.gov for possible suspension and debarment issues. Appropriate language regarding suspension and debarment will be included in future contracts. Prior to entering future contracts, management will search SAM.gov to avoid entering into contracts with unauthorized parties. Management will document the result of such search.