Finding Text
Finding No. 2024-005 – Suspension and Debarment Federal Agency: U.S. Department of Agriculture Federal Program: Special Supplement Nutrition Program for Women, Infants, and Children Assistance Listing No.: 10.557 Federal Award Identification No. and Year: 238DC000M2003 (2023) Pass-through Agency: Food Research and Action Center Pass-through No.: V5KQJY61BB96 Award Period: May 1, 2023 through October 31, 2024 Type of Finding: Significant Deficiency in Internal Control Criteria or Specific Requirement: Non-federal entities are required by Uniform Guidance to establish and maintain effective internal control over compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: During our audit, we identified that ACHD did not establish adequate internal control over compliance with federal suspension and debarment requirements as mandated by Uniform Guidance. Questioned Costs: None Context: We noted that suspension and debarment verification procedures were not performed prior to engaging in a contract for 1 of 1 vendors tested. Effect: Lack of internal control over compliance could result in noncompliance with federal suspension and debarment requirements, potentially leading to penalties or loss of federal funding. Cause: ACHD does not have an internal control policy in place that requires suspension and debarment verification procedures to be performed prior to engaging in a contract. Recommendation: For all contracts charged to federal programs, ACHD should ensure that suspension and debarment verification procedures are performed prior to engaging in the contract.