Finding 1150209 (2024-002)

2024-002 – Suspension and Debarment – Material Weakness and Material Noncompliance Federal Program Information: Funding Agency: U.S. Department of Treasury FALN: 21.027 Federal Award Identification Numbers: GA-0010655 Pass Through Entity: State of Georgia Award Year: 2023-2024 Criteria: Under 2 CFR Section 200.303(a), non-federal entities must establish and maintain effective internal controls to provide reasonable assurance that the Organization is managing the federal awards in compliance with statues, regulations, and the terms and conditions of the award. Additionally, under 2 CFR part 180, the Organization is required to verify suspension or debarment from the excluded parties list system regarding compliance. Condition: The Organization does not have approved policies and procedures over suspension and debarment that meet the requirements of the Uniform Guidance. Under 2 CFR part 180, the Organization is required to verify suspension or debarment from the excluded parties list system regarding compliance. Effect: Not following suspension and debarment policies and procedures may result in funds to be returned back to grantor and/or impact future funding. Cause: Supporting suspension and debarment documentation was not properly maintained in part due to not having adequate policies and procedures in place. Known Questioned Costs: None Perspective: The finding represents a systematic problem due to not having adequeate policies and procedures in place. Repeat Finding: No Recommendation: We recommend the Organization strengthen its policies and procedures to ensure suspension and debarment is adequately documented for goods and services purchased in accordance with Uniform Guidance and other federal guidelines. In addition, the Organization should verify that all vendors under covered transactions are not listed on the excluded parties list system by performing a search on sam.gov and maintaining the results of such search in the vendor’s file.