Finding Text
Condition: One contractor was selected for testing procurement, suspension, and debarment. Our test work indicated that there was no documentation for the verification of suspension and debarment for the contractor selected for testing.
Criteria: Suspension and debarment regulations under 2 CFR should be followed.
Cause: Procedures were not consistently implemented to verify if vendors contracted with the Foundation related to the federal program in excess of $25,000 are not suspended, debarred or otherwise excluded from doing business.
Effect: Noncompliance with the federal award program’s suspension and debarment compliance requirements could occur and not be detected and corrected timely.
Recommendation: We noted that management implemented procedures to address suspension and debarment toward the end of the fiscal year. We recommend that the Foundation ensure the established procedures are consistently followed and documented for all contracts entered into using federal awards.
Views of Responsible Officials and Planned Corrective Actions: The Foundation has consistently maintained procedures to verify whether an organization is suspended or debarred and the enhanced process of documenting these procedures as recommended during the prior year audit was implemented by the Foundation during 2024.