Finding Text
Federal Agency: U.S. Department of the Treasury
Federal Program Name: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds
Assistance Listing Number: 21.027
Federal Award Identification Number and Year: 500142-8 and 2021
Pass-Through Agency: Maryland State Department of Education
Pass-Through Numbers: 211760501, 21178701, 21182601, 21184201, 21185801, 21188501, and 21193001
Award Period: March 3, 2021 through December 31, 2024
Compliance Requirement: Suspension and Debarment
Type of Finding: Significant Deficiency in Internal Control over Compliance
Criteria or specific requirement:
When a non-federal entity enters into a covered transaction with an entity at a lower tier, the nonfederal
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.
Condition/Context:
Two of five vendors tested did not have proper documentation maintained to support suspension and
debarment verification was performed prior to them being paid with federal funds. Per sam.gov, there
was no history of the vendor being suspended or debarred.
Questioned costs:
None
Cause:
The Board's policies and procedures did not require documentation be maintained to verify vendors are
not suspended or debarred prior to paying with federal grant funds.
Effect:
The Board could make a disbursement to a vendor that is suspended or debarred.
Repeat Finding:
No
Recommendation:
We recommend the Board review its policies and procedures to require documentation be maintained
to verify vendors are not suspended or debarred prior to being paid with federal funds.
Views of responsible officials:
The Board concurs with the finding.