Finding 1155985 (2024-001)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-09-29

AI Summary

  • Core Issue: The organization lacks a documented policy for verifying that vendors and contractors are not suspended or debarred from federal funding.
  • Impacted Requirements: This non-compliance with 2 CFR Section 180 poses a risk to federal funding eligibility.
  • Recommended Follow-Up: Establish a formal written policy and conduct debarment checks for all vendors, ensuring compliance within 90 days.

Finding Text

U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Program Information: Assistance Listing Number: 93.516 Public Health Training Centers Program Federal Award Project Title: Community Health Worker Training Program Federal Award Identification Number: T2946692 Award Number: 6 T29HP46692-01-01 Federal Award Date: November 14, 2022 Project Period: September 15, 2022 – September 14, 2025 Questioned Costs: None Compliance Requirement: Procurement and Suspension and Debarment U.S DEPARTMENT OF LABOR Program Information: Assistance Listing Number: 17.285 Registered Apprenticeship Program Federal Award Project Title: Accelerated Pre-Apprenticeship Program for New Immigrants Federal Award Identification Number: 24A60AP000078 Award Number: 24A60AP000078-01-00 Federal Award Date: June 26, 2024 Project Period: July 1, 2024 – June 30, 2028 Questioned Costs: None Compliance Requirement: Procurement and Suspension and Debarment 2024-001 Policy and Procedure for Suspension and Debarment Material Weakness Condition: The non-profit organization (NFP) does not have a documented policy or procedure in place for verifying that vendors, subrecipients, and contractors are not suspended or debarred from receiving federal funds prior to entering into a covered transaction. Criteria: The Code of Federal Regulations (CRF) Section 2 CFR Section 180 requires written procedures that comply with federal standards for suspension and debarment. Cause: Management was not aware of the specific federal requirement to verify the suspension and debarment status of vendors and subrecipients, believing the standard procurement process was sufficient. The organization has no formal documented policy in place for the requirement of 2 CFR Section 180 of the CFR. Effect: AACF is not in compliance with 2 CFR Section 180. Repeat Finding: No. Auditor’s Recommendation: We recommend AACF adopt a formal written policy in the format and with the elements required by 2 CFR Section 180. Views of Responsible Officials and Planned Correct Action: AACF concurs with this finding. AACF leadership, including its Board and Executive Director, will review and update the organization’s fiscal policies and procedures within 90 days to ensure compliance with Uniform Guidance requirements. All contractors will be required to certify that neither their agency nor any of their principals are debarred or suspended from doing business with the federal government. The Executive Director will be responsible for ensuring this documentation is obtained prior to executing any contractual agreements moving forward. In addition, the Director of Operations will conduct debarment checks for all applicable vendors through SAM.gov in 2024 and 2025 and will provide the results to the Executive Director for review within 30 days.

Corrective Action Plan

AACF concurs with this finding. AACF leadership, including its Board and Executive Director, will review and update the organization’s fiscal policies and procedures within 90 days to ensure compliance with Uniform Guidance requirements. All contractors will be required to certify that neither their agency nor any of their principals are debarred or suspended from doing business with the federal government. The Executive Director, Elizabeth Chung, will be responsible for ensuring this documentation is obtained prior to executing any contractual agreements moving forward. In addition, the Director of Operations, TJ Sydykov, will conduct debarment checks for all applicable vendors through SAM.gov in 2024 and 2025 and will provide the results to the Executive Director, Elizabeth Chung, for review within 30 days.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1155984 2024-001
    Material Weakness Repeat
  • 1155986 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.516 Public Health Training Centers Program $681,080
17.285 Registered Apprenticeship $309,332
84.215 Innovative Approaches to Literacy; Promise Neighborhoods; Full-Service Community Schools; and Congressionally Directed Spending for Elementary and Secondary Education Community Projects $267,527
94.016 Americorps Seniors Senior Companion Program (scp) 94.016 $244,528
94.002 Americorps Seniors Retired and Senior Volunteer Program (rsvp) 94.002 $164,295
93.590 Community-Based Child Abuse Prevention Grants $150,670
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $105,027
93.137 Community Programs to Improve Minority Health $102,126
97.010 Citizenship Education and Training $94,625
14.251 Economic Development Initiative, Community Project Funding, and Miscellaneous Grants $48,982
93.569 Community Services Block Grant $41,571
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $9,345
97.024 Emergency Food and Shelter National Board Program $6,673
10.935 Urban Agriculture and Innovative Production $2,409
66.312 Environmental Justice Government-to-Government (ejg2g) Program $500