Finding 1157228 (2024-002)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-09-30
Audit: 369530
Organization: Cirbn, LLC (IL)

AI Summary

  • Core Issue: CIRBN failed to verify vendor suspension or debarment for three qualifying contracts, leading to a material weakness in compliance.
  • Impacted Requirements: Compliance with 2 CFR section 180.995, which mandates verification of vendor eligibility for federal contracts.
  • Recommended Follow-Up: Implement policies and internal controls to ensure all federal grants include required suspension and debarment checks.

Finding Text

Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus Capital Projects Fund Assistance Listing Number: 21.029 Pass-Through Agency: Illinois Department of Commerce and Economic Opportunity Pass-Through Number: 21-431004 Award Period: December 1, 2023 to November 30, 2025 Type of Finding: • Material Weakness in Internal Control over Compliance • Other Matter Criteria or specific requirement: When a non-Federal entity enters into a qualifying contract with a vendor, the non-Federal entity must verify that the vendor, as defined in 2 CFR section 180.995, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: During the award period, CIRBN entered into three qualifying contracts, however CIRBN did not verify if the vendor was suspended or debarred. Questioned costs: None Context: CIRBN was not aware of this requirement, therefore was not in compliance with federal regulations. Cause: Management was not aware of this requirement. Effect: CIRBN is not in compliance with requirements of the federal program. Repeat Finding: No Recommendation: We recommend that for all federal funded grants CIRBN perform the required suspension and debarment verification, including implementing the necessary policies and internal controls over this process. Views of responsible officials: There is no disagreement with the audit finding. We will implement the necessary controls to ensure we perform the required suspension and debarment verification in the future.

Corrective Action Plan

Suspension and Debarment Recommendation: We recommend that for all federal funded grants CIRBN perform the required suspension and debarment verification, including implementing the necessary policies and internal controls over this process. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: We will implement the necessary controls to ensure we perform the required suspension and debarment verification in the future. Name(s) of the contact person(s) responsible for corrective action: Mark DeKeersgieter Planned completion date for corrective action plan: September 2025

Categories

Procurement, Suspension & Debarment Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.029 Coronavirus Capital Projects Fund $924,551
21.027 Coronavirus State and Local Fiscal Recovery Funds $263,008