Finding Text
Condition: Seven contractors were selected for testing procurement, suspension and debarment. Our
testing for procurement, suspension, and debarment indicated that there was no documentation of the cost
and price analysis associated with the selection of the contractors used for procurement under the federal
award. Furthermore, we noted there was no documentation for the verification of suspension and debarment
for the contractors selected for testing.
Criteria: Procurement, suspension and debarment regulations under 2 CFR should be followed.
Cause: While the Corporation maintained adequate written procedures related to procurement, we were
unable to view documentation of the cost and price analysis that was performed with the selection of the
contractors. Procedures were not consistently documented to verify if vendors contracted with the
Corporation 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 procurement, suspension and debarment
compliance requirements could occur and not be detected and corrected timely.
Recommendation: We noted that management has documented procedures to address procurement,
suspension and debarment, however, we recommend that the Corporation 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 Corporation has consistently adhered to all procurement procedures and addressed the need for documenting every procedure, including verifying whether a corporation is suspended or debarred.
The Finance Department will have complete oversight of the entire process to ensure proper documentation as recommended during the FY2024 audit.