Finding Text
Criteria or Specific Requirement: In accordance with 2 CFR 200, non-federal entities are required to
verify that vendors and contractors are not suspended or debarred from receiving federal funds prior to
entering into a covered transaction. This check is typically conducted by reviewing the System for Award
Management (SAM.gov) or obtaining a certification from the vendor.
Condition and Context: During procedures performed over suspension and debarment, we noted
multiple instances in which Solvista Health was unable to locate documentation that a suspension and
debarment check was performed prior to entering into a transaction with a vendor.
Questioned Costs: N/A
Cause: Lack of properly designed and implemented internal controls to ensure a documented procedure
or process requiring staff to perform and retain documentation of suspension and debarment verification
as part of the procurement process.
Effect: Failure to perform and retain documentation of suspension and debarment checks may result in
noncompliance with federal procurement regulations and could expose Solvista Health to the risk of
utilizing vendors who are ineligible to receive federal funds.
Identification as a Repeat Finding: Not a repeat finding.
Recommendation: We recommend that Solvista Health revise their procurement policy to include a
formal procedure requiring suspension and debarment verification for all covered transactions prior to
vendor engagement. This process should include retaining documentation (e.g., dated SAM.gov search
results or signed vendor certifications) in the procurement file for regulatory compliance.