Finding Text
2024-003 – ALN – 23.002 - Appalachian Area Development – Procurement and Suspension and Debarment: Lack of documentation for vendors as not suspended or debarred (New Finding) Criteria : Per the compliance requirements, transactions should be made only with the vendors who are not suspended or debarred. Condition : Out of 3 vendors tested, we noted that there was no proper documentation maintained for one vendor showing that the vendor was not suspended or debarred. Cause : The Organization was unaware of the compliance requirement. Effect : Failure to verify the suspension or debarment of vendors may result in disbursements being made to a suspended/debarred vendor, thus resulting in potential noncompliance with program requirements. Recommendation : We recommend management implement a level of review by someone with knowledge of the grant requirements of the program. Management’s Response : AOMC acknowledges that one vendor was not confirmed to have not been suspended or debarred. AOMC is updating its internal policies to clearly include this requirement so that all future purchases meeting this requirement are properly documented and compliant with grant guidelines. AOMC staff directly responsible for grant management will also continue to attend training sessions to strengthen their knowledge of grant reporting, grant requirements, and compliance responsibilities.