Finding 1166935 (2023-018)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2025-12-29
Audit: 377993
Organization: State of Kosrae (FM)

AI Summary

  • Core Issue: FSMNG failed to verify if contractors were suspended or debarred before entering into contracts, affecting compliance with procurement regulations.
  • Impacted Requirements: Noncompliance with 2 CFR section 180.300, which mandates verification of exclusions for covered transactions.
  • Recommended Follow-Up: Implement formal procedures to ensure verification of contractors' status before any covered transactions occur.

Finding Text

Federal Agency: U.S. Department of Health and Human Services AL Program: 93.323 Epidemiology and Laboratory Capacity for Infectious Diseases Federal Award No.: NU50CK000513 Area: Procurement and Suspension and Debarment Questioned Costs: $394,309 Criteria: In accordance with 2 CFR section 180.300, entities that enter into covered transactions must verify that the person with whom they intend to do business is not excluded or disqualified by: a. Checking SAM.gov Exclusions; or b. Collecting a certification from that person; or c. Adding a clause or condition to the covered transaction with that person. Condition: For eight (or 100%) of eight purchase orders or contracts tested, totaling $394,309 of a total population of $2,012,233, FSMNG did not perform verification whether the individual or contractor was suspended or debarred prior to entering into a covered transaction. Cause: FSMNG lacks policies and procedures for verification of persons or contractors not suspended, debarred, or otherwise excluded prior to entering into a covered transaction. Effect: FSMNG is in noncompliance with applicable procurement and suspension and debarment requirements. Questioned costs of $394,309 is reported. Recommendation: FSMNG should implement formal procedures to document written evidence that, prior to entering into a covered transaction, a search had been performed to ensure the potential individual or contractor is not suspended, debarred, or otherwise excluded. Views of Responsible Officials: Management agrees with the finding but does not agree with the associated questioned costs. Refer to FSM NG’s Views of Responsible Officials for their detailed response. Auditor Response: Questioned costs remain as the FSM National Government did not perform suspension and debarment procedures prior to entering into a covered transaction with a person or company.

Corrective Action Plan

• Review procurement processes and require implementing agencies to verify suspension and debarment status via SAM.gov, with documentation for all transactions. • Implement formal procedures (e.g., printed checks, certifications) prior to covered transactions. · Note: Questioned costs unwarranted as no evidence of suspended/debarred vendors or noncompliance established. 9/30/2026 Mr. Marcus Samo, Secretary of FSMNG Health Email: marcus.samu@fsmhealth.gov.fm

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1166850 2023-006
    Material Weakness Repeat
  • 1166851 2023-007
    Material Weakness Repeat
  • 1166852 2023-008
    Material Weakness Repeat
  • 1166853 2023-009
    Material Weakness Repeat
  • 1166854 2023-010
    Material Weakness Repeat
  • 1166855 2023-011
    Material Weakness Repeat
  • 1166856 2023-006
    Material Weakness Repeat
  • 1166857 2023-007
    Material Weakness Repeat
  • 1166858 2023-008
    Material Weakness Repeat
  • 1166859 2023-009
    Material Weakness Repeat
  • 1166860 2023-010
    Material Weakness Repeat
  • 1166861 2023-011
    Material Weakness Repeat
  • 1166862 2023-006
    Material Weakness Repeat
  • 1166863 2023-007
    Material Weakness Repeat
  • 1166864 2023-008
    Material Weakness Repeat
  • 1166865 2023-009
    Material Weakness Repeat
  • 1166866 2023-010
    Material Weakness Repeat
  • 1166867 2023-011
    Material Weakness Repeat
  • 1166868 2023-006
    Material Weakness Repeat
  • 1166869 2023-007
    Material Weakness Repeat
  • 1166870 2023-008
    Material Weakness Repeat
  • 1166871 2023-009
    Material Weakness Repeat
  • 1166872 2023-010
    Material Weakness Repeat
  • 1166873 2023-011
    Material Weakness Repeat
  • 1166874 2023-006
    Material Weakness Repeat
  • 1166875 2023-007
    Material Weakness Repeat
  • 1166876 2023-008
    Material Weakness Repeat
  • 1166877 2023-009
    Material Weakness Repeat
  • 1166878 2023-010
    Material Weakness Repeat
  • 1166879 2023-011
    Material Weakness Repeat
  • 1166880 2023-006
    Material Weakness Repeat
  • 1166881 2023-007
    Material Weakness Repeat
  • 1166882 2023-008
    Material Weakness Repeat
  • 1166883 2023-009
    Material Weakness Repeat
  • 1166884 2023-010
    Material Weakness Repeat
  • 1166885 2023-011
    Material Weakness Repeat
  • 1166886 2023-006
    Material Weakness Repeat
  • 1166887 2023-007
    Material Weakness Repeat
  • 1166888 2023-008
    Material Weakness Repeat
  • 1166889 2023-009
    Material Weakness Repeat
  • 1166890 2023-010
    Material Weakness Repeat
  • 1166891 2023-011
    Material Weakness Repeat
  • 1166892 2023-006
    Material Weakness Repeat
  • 1166893 2023-007
    Material Weakness Repeat
  • 1166894 2023-008
    Material Weakness Repeat
  • 1166895 2023-009
    Material Weakness Repeat
  • 1166896 2023-010
    Material Weakness Repeat
  • 1166897 2023-011
    Material Weakness Repeat
  • 1166898 2023-006
    Material Weakness Repeat
  • 1166899 2023-007
    Material Weakness Repeat
  • 1166900 2023-008
    Material Weakness Repeat
  • 1166901 2023-009
    Material Weakness Repeat
  • 1166902 2023-010
    Material Weakness Repeat
  • 1166903 2023-011
    Material Weakness Repeat
  • 1166904 2023-006
    Material Weakness Repeat
  • 1166905 2023-007
    Material Weakness Repeat
  • 1166906 2023-008
    Material Weakness Repeat
  • 1166907 2023-009
    Material Weakness Repeat
  • 1166908 2023-010
    Material Weakness Repeat
  • 1166909 2023-011
    Material Weakness Repeat
  • 1166910 2023-006
    Material Weakness Repeat
  • 1166911 2023-007
    Material Weakness Repeat
  • 1166912 2023-008
    Material Weakness Repeat
  • 1166913 2023-009
    Material Weakness Repeat
  • 1166914 2023-010
    Material Weakness Repeat
  • 1166915 2023-011
    Material Weakness Repeat
  • 1166916 2023-006
    Material Weakness Repeat
  • 1166917 2023-007
    Material Weakness Repeat
  • 1166918 2023-008
    Material Weakness Repeat
  • 1166919 2023-009
    Material Weakness Repeat
  • 1166920 2023-010
    Material Weakness Repeat
  • 1166921 2023-011
    Material Weakness Repeat
  • 1166922 2023-006
    Material Weakness Repeat
  • 1166923 2023-007
    Material Weakness Repeat
  • 1166924 2023-008
    Material Weakness Repeat
  • 1166925 2023-009
    Material Weakness Repeat
  • 1166926 2023-010
    Material Weakness Repeat
  • 1166927 2023-011
    Material Weakness Repeat
  • 1166928 2023-006
    Material Weakness Repeat
  • 1166929 2023-007
    Material Weakness Repeat
  • 1166930 2023-008
    Material Weakness Repeat
  • 1166931 2023-009
    Material Weakness Repeat
  • 1166932 2023-010
    Material Weakness Repeat
  • 1166933 2023-011
    Material Weakness Repeat
  • 1166934 2023-017
    Material Weakness Repeat
  • 1166936 2023-019
    Material Weakness Repeat
  • 1166937 2023-020
    Material Weakness Repeat
  • 1166938 2023-012
    Material Weakness Repeat
  • 1166939 2023-013
    Material Weakness Repeat
  • 1166940 2023-014
    Material Weakness Repeat
  • 1166941 2023-015
    Material Weakness Repeat
  • 1166942 2023-016
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $7.62M
93.323 EPIDEMIOLOGY AND LABORATORY CAPACITY FOR INFECTIOUS DISEASES (ELC) $3.76M
84.027 SPECIAL EDUCATION GRANTS TO STATES $3.73M
93.268 IMMUNIZATION COOPERATIVE AGREEMENTS $2.00M
11.431 CLIMATE AND ATMOSPHERIC RESEARCH $1.91M
15.875 ECONOMIC, SOCIAL, AND POLITICAL DEVELOPMENT OF THE TERRITORIES $943,754
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $926,326
93.116 PROJECT GRANTS AND COOPERATIVE AGREEMENTS FOR TUBERCULOSIS CONTROL PROGRAMS $857,028
93.217 FAMILY PLANNING SERVICES $606,890
93.354 PUBLIC HEALTH EMERGENCY RESPONSE: COOPERATIVE AGREEMENT FOR EMERGENCY RESPONSE: PUBLIC HEALTH CRISIS RESPONSE $540,103
93.994 MATERNAL AND CHILD HEALTH SERVICES BLOCK GRANT TO THE STATES $516,493
15.904 HISTORIC PRESERVATION FUND GRANTS-IN-AID $512,290
93.069 PUBLIC HEALTH EMERGENCY PREPAREDNESS $496,380
93.958 BLOCK GRANTS FOR COMMUNITY MENTAL HEALTH SERVICES $422,475
93.391 ACTIVITIES TO SUPPORT STATE, TRIBAL, LOCAL AND TERRITORIAL (STLT) HEALTH DEPARTMENT RESPONSE TO PUBLIC HEALTH OR HEALTHCARE CRISES $402,201
93.377 PREVENTION AND CONTROL OF CHRONIC DISEASE AND ASSOCIATED RISK FACTORS IN THE U.S. AFFILIATED PACIFIC ISLANDS, U.S. VIRGIN ISLANDS, AND P. R. $390,383
93.898 CANCER PREVENTION AND CONTROL PROGRAMS FOR STATE, TERRITORIAL AND TRIBAL ORGANIZATIONS $293,369
84.325 SPECIAL EDUCATION - PERSONNEL DEVELOPMENT TO IMPROVE SERVICES AND RESULTS FOR CHILDREN WITH DISABILITIES $283,747
93.251 EARLY HEARING DETECTION AND INTERVENTION $262,950
93.092 AFFORDABLE CARE ACT (ACA) PERSONAL RESPONSIBILITY EDUCATION PROGRAM $255,308
93.889 NATIONAL BIOTERRORISM HOSPITAL PREPAREDNESS PROGRAM $209,357
93.788 OPIOID STR $183,482
45.310 GRANTS TO STATES $85,009
93.110 MATERNAL AND CHILD HEALTH FEDERAL CONSOLIDATED PROGRAMS $82,927
93.104 COMPREHENSIVE COMMUNITY MENTAL HEALTH SERVICES FOR CHILDREN WITH SERIOUS EMOTIONAL DISTURBANCES (SED) $74,975
17.225 UNEMPLOYMENT INSURANCE $71,770
93.991 PREVENTIVE HEALTH AND HEALTH SERVICES BLOCK GRANT $56,709
93.336 BEHAVIORAL RISK FACTOR SURVEILLANCE SYSTEM $54,763
93.917 HIV CARE FORMULA GRANTS $49,133
93.127 EMERGENCY MEDICAL SERVICES FOR CHILDREN $42,555
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $34,976
10.675 URBAN AND COMMUNITY FORESTRY PROGRAM $29,673
93.060 SEXUAL RISK AVOIDANCE EDUCATION $13,930
93.967 CENTERS FOR DISEASE CONTROL AND PREVENTION COLLABORATION WITH ACADEMIA TO STRENGTHEN PUBLIC HEALTH $13,341
59.006 8(A) BUSINESS DEVELOPMENT PROGRAM $0