Finding Text
Federal Program: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing #93.323). Criteria: When a sub-recipient of federal awards uses federal money to acquire goods and services expected to cost more than $25,000, the sub-recipient must determine if the vendor is suspended, debarred, or otherwise excluded from doing business with the federal government. Condition: The Center purchased goods from one vendor totaling greater than $25,000 that required the Center to determine the vendor's status with the federal governmnet. The vendor was, in fact, not an excluded party. The Center needs to strengthen their internal control in place to ensure all vendors are verified before the disbursements are made. Cause: Management Oversight. Effect: Even though the Center did comply with the requirements not to purchase goods with excluded parties, failing to check the excluded parties list increases the risk that the Center will make payments to ineligible vendors and potentially claim inappropriate reimbursement. Questioned Costs: None. Context: Payments to an eligible vendor of the ELC program totaled $61,790. Repeat Finding: Yes. Recommendation: We recommend the Center verify a vendor's status by checking the System for Award Management (SAM) maintained by the General Services Administration before making purchases expected to exceed $25,000 and paid with federal grants. Views of Responsible Officials: We learned about this requirement during the prior year audit. However, the payment cited in this finding had already been made. Going forward we will verify all vendors' status using the System for Award Management (SAM) maintained by the General Services Administration b efore making purchases expected to exceed $25,000.