Finding Text
Part III - Findings and Questioned Costs Relating to Federal Awards (Continued)
2022-003 Disbursement to Vendor not Registered in SAM
Compliance Subrecipient Monitoring, Procurement, Suspension & Debarment
Category Material weakness in Internal Control and Material Noncompliance
ALN 12.607
Program Community Economic Adjustment of Establishment, Expansion, Realignment, or
Closure of a Military Installation
Federal Agency US Department of Defense
ALN 97.036
Program Disaster Grants - Public Assistance (Presidentially Declared Disasters)
Federal Agency US Department of Homeland Security
Criteria
2 CFR Part 25 Universal Identifier and System for Award Management
According to 2 CFR Part 25, entities applying for federal grants or cooperative agreements must be registered in the
System for Award Management (SAM) before submitting an application and must maintain an active SAM registration
throughout the period of the federal award.
Condition
During the audit, it was noted that Jorge R. Calderon Lopez, to which disbursements were made for legal services
was not registered in SAM at the time of the award and remained unregistered throughout the audit period.
Cause
The entity was unaware of the requirement to register in SAM or failed to complete the registration process.
Effect
The lack of SAM registration could result in the entity's ineligibility to receive federal funds and raises concerns about
compliance with federal regulations, including those related to suspension and debarment.
Questioned Costs
$7,965.00
Recommendation
We recommend that Authority communicates the supplier to complete the SAM registration process immediately and
implement procedures to ensure ongoing compliance with SAM registration requirements. Additionally, the Authority
should review its policies and procedures to prevent a recurrence of this issue.
Views of Responsible Official (Unaudited)
Refer to Corrective Action Plan