Finding Text
Item 2024-005: Suspension and Debarment Identification of federal programs: Food Distribution Cluster, Assistance Listing Number 10.565, 10.568 and 10.569 Federal award grant number: 204645, 244603 and 244590 Federal agency: U.S. Department of Agriculture Pass-through entity: Minnesota Department of Health and Minnesota Department of Human Services Criteria: SHN is required to verify that contractors are not suspended or debarred for all contracts for goods and services that equal or exceed $25,000 and are funded by federal awards (2 CFR 180.995). This verification may be accomplished by 1) searching the System for Award Management (SAM), 2) collecting a certification from the entity and 3) adding a clause or condition to the covered transaction with that entity (2 CFR 180.300). Condition: During our testing of suspension and debarment, we noted that for two of the disbursements selected for testing, there was no check for suspension and debarment prior to the transaction occurring. Cause: The exception noted above was due to a breakdown in SHN’s procedures to ensure that all procurements of goods and services are in accordance with the Uniform Guidance and its procurement policy. Effect: Improper procurement procedures can result in actions taken by oversight agencies which could impact future funding. During the audit, we were able to verify that the vendor was not suspended or debarred. Questioned costs: None Context: The population subject to suspension and debarment requirements included five vendors. The sample size of two procurements was determined using the guidance in the AICPA Audit and Accounting Guide—Government Auditing Standards and Single Audits. Repeat finding: No Recommendation: SHN should continue to improve its procedures to ensure that all procurements of goods and services are in accordance with the Uniform Guidance and its procurement policy. It is also recommended that documentation supporting the procurements be maintained. Views of responsible officials of the auditee: SHN concurs with this finding and a response is included in the corrective action plan.