Core Issue: The Organization lacks documentation for reviewing contracts with suspended or debarred entities.
Impacted Requirements: Internal controls do not align with Federal guidelines, risking noncompliance.
Recommended Follow-Up: Update procurement policy to ensure proper review and documentation of contracts with suspended or debarred parties.
Finding Text
Criteria
Nonfederal entities are prohibited from contracting with or making subawards under covered transactions to
parties that are suspended or debarred.
Condition
While the Organization’s internal control policies do not allow for contracting with suspended or debarred
entities, the Organization does not document its review or determination as to whether a procurement is or is
not awarded to a suspended or debarred business.
Cause of Condition
The Organization’s internal controls are not properly designed to be in line with Federal guidelines.
Repeat Finding
No.
Effect of Condition
The Organization’s lack of internal controls allows for the Organization to enter into procurement contracts
with suspended or debarred entities.
Recommendation
We recommend management update the Organization’s procurement policy so that the Organization reviews
and documents to ensure each procurement contract is awarded to an organization which is neither
suspended or debarred.