Finding Text
Federal Agency: U.S. Department of Agriculture Forest Service
Federal Program Name: Cooperative Forestry Assistance - Pass-Through Agency: N/A
Assistance Listing Number: 10.664
Federal Award Identification Year: 2021
Award Period: 09/01/21-08/31/26
Type of Finding: Other Matters - Significant Deficiency in Internal Control
Criteria: 2 CFR 200.403(a) - When a non-federal entity enters into a covered transaction with an entity at a lower tier, 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.
Condition: For two subrecipient samples that were selected, verification of subrecipient's suspension or debarment
status was not verified until after the subaward agreement was effective.
Context: A nonstatistical sample of 6 out of 20 subrecipients were selected for testing for the Cooperative Forestry Assistance program. The condition noted above was identified during our procedures over CFSC’s subrecipients.
Effect: CFSC did not verify suspension or debarment status timely which could result in naming a subrecipient
as an award recipient who is potentially suspended or debarred.
Cause: CFSC did not consistently ensure that Suspension or Debarment status was verified timely before naming the subrecipients tested as award recipients.
Repeat Finding: The finding is not a repeat finding.
Recommendation: We recommend that management strengthen its current policies and procedures to ensure that
Suspension and Debarment Status is verified for each subrecipient applicant during its pre-award subrecipient screening process.
Management’s Views: See separate corrective action plan.