Finding Text
Criteria or specific requirement: Federal regulations require that grantees have controls in place to verify that vendors are not suspended or debarred prior to entering into contracts for goods and services exceeding $25,000. Condition: For four of the four contracts tested, there was no evidence of verification from sam.gov having been obtained to verify vendors were not suspended or debarred prior to conducting business. There was also no evidence in the Organization’s contract with the vendor that the appropriate language had been included. Context: Of the four vendors that had expenditures greater than $25,000, we selected four vendors for procurement testing. Effect: The Organization could be transacting with parties that are suspended or debarred and may be subject to questioned costs or other sanctions from funding agencies. However, during the course of the audit, we verified these vendors were not previously suspended or debarred. Cause: There were ineffective controls in place during the period, along with lack of management oversight. Repeat finding: No Recommendation: We recommend that before the Organization executes contracts that exceed $25,000 with vendors, the vendor be compared to the listing of suspended and debarred vendors on the sam.gov website and that this verification be properly documented. Views of responsible officials: Management agrees with the auditor recommendation.