Finding Text
Program Information: Assistance Listing #: 93.445 U.S. Department of Health and Human Services I.H.S. Water Tank Replacement Award Numbers: PH12-U35, RN21-15 Award Periods: 7/29/2021-7/29/2025 Criteria: Per 2 CFR section 180.300 and 2 CFR section 200.214, non-federal entities must not enter into covered transactions with parties that are suspended or debarred. Verification must be performed by checking the excluded parties list in the System for Award Management (SAM.gov) or by obtaining a certification from the vendor, and this verification must be documented and retained as part of the procurement record. Additionally, 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls over federal awards, including compliance with federal statutes, regulations, and the terms and conditions of the award, which encompasses the requirement to verify and document vendor eligibility. Condition/Context: During testing we noted the following: For 1 of 1 vendors tested, the Tribe did not maintain documentation demonstrating that the vendor was verified as not federally suspended or debarred prior to entering into the contract. [ X ] Compliance Finding [ X ] Significant Deficiency [ ] Material Weakness Cause: The Tribe’s procedures for suspension and debarment verification were not consistently followed or documentation was not retained. Staff turnover and inconsistent application of procurement documentation practices contributed to the exception. Effect: Without documented verification, the Tribe cannot demonstrate that the vendor was eligible to receive federal funds at the time the contract was awarded. This increases the risk of noncompliance with federal procurement requirements and could result in unallowable costs if a vendor were suspended or debarred. Questioned Costs: None noted. The vendor was not found to be suspended or debarred; the issue relates solely to lack of documentation. Repeat Finding: No. Recommendation: We recommend the Tribe strengthen its procurement procedures to ensure suspension and debarment verification is documented for all vendors prior to contract award. This may include requiring a printed SAM.gov verification, a signed vendor certification, or a standard contract clause, and ensuring the documentation is retained in the procurement file. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has prepared corrective action as detailed in its Corrective Action Plan.