Finding 1168078 (2023-002)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2026-01-07

AI Summary

  • Core Issue: The Organization lacks written procedures for procurement suspension and debarment, risking non-compliance with federal regulations.
  • Impacted Requirements: Non-federal entities must have documented policies to verify vendor eligibility and avoid contracts with suspended or debarred parties.
  • Recommended Follow-up: Create formal procurement policies, document compliance for all transactions, train staff, and regularly review procurement files.

Finding Text

2023-002 – Procurement, Suspension, and Debarment Program: ALN# 47.070 = Computer and Information Science and Engineering Federal Agency: National Science Foundation Federal Award Identification Number(s): 2216614, 2122756 Period: Year Ended December 31, 2023 Criteria: Under 2 CFR 200.319, and 2 CFR 200.320, non-federal entities must maintain written procurement policies and internal controls to ensure compliance with Federal requirements, including suspension and debarment checks. Under 2 CFR 200.214, non-federal entities must not enter into contracts with parties that are suspended or debarred. Condition: During our review of procurement policies, we noted that the Organization did not have written procedures addressing procurement suspension and debarment requirements and the Organization was unable to furnish documentation that procurement, suspension, and debarment procedures took place for all contracts selected for testing. Cause: The Organization has not developed formal written procurement, suspension, and debarment policies and procedures. Effect: Without written polices and procedures, the Organization is at increased risk of: • Failing to verify vendor eligibility. • Contracting with suspended or debarred entities. • Procurements conducted in a manner that fails to provide full and open competition. Questioned Costs: No questioned costs identified. Context: This sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: No Recommendation: We recommend that the Organization: • Develop and implement written procurement policies that clearly outline procedures for suspension and debarment verification. • Require and document evidence of compliance for all covered procurement transactions • Train staff on the updated procedures. • Periodically review procurement files to ensure consistent adherence. Views of Responsible Officials: See management corrective action plan attached.

Corrective Action Plan

Response to finding 2023-002 – Procurement, Suspension, and Debarment Views of Responsible Officials: CSforALL management agrees with the conditions identified by SAX Advisory Group, including the noted causes and resulting effects under 2023-002. Due to the organizational pause at the end of 2024 and the transition period throughout 2025, the Organization operated with significantly reduced staffing and limited capacity, which delayed the development of procurement policies addressing suspension and debarment requirements. Initial governance updates occurred during the 2025 Q4 Board meeting, where the Board approved a revised version of the By-Laws focused on correcting deficiencies in board structure and conflict-of-interest provisions. Procurement procedures recommended in this finding were not included in that initial revision but are scheduled for development and implementation as part of the 2026 rebuilding phase. Corrective Action taken in 2025: While no procurement-specific corrective action has yet been implemented, foundational updates to the By-Laws were approved at the 2025 Q4 Board meeting to address structural governance issues. These updates establish the basis for incorporating required procurement, suspension, and debarment procedures. The Operations Manager and Advisory Consultant have begun drafting updated procurement policies to ensure compliance with federal requirements. Corrective Action Planned for 2026: Draft procurement, suspension, and debarment policies will be completed and presented to the Board as a formal resolution in early 2026. Upon approval, these policies will be incorporated into the By-Laws and will take immediate effect. The Board has also approved the planned hiring of a consultant with Executive Director and strategy experience in 2026 to support policy implementation, training, staff alignment, and ongoing compliance review. These measures will ensure full compliance with procurement requirements throughout the 2026 operating year and beyond.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1168079 2023-003
    Material Weakness Repeat
  • 1168080 2023-004
    Material Weakness Repeat
  • 1168081 2023-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
47.070 COMPUTER AND INFORMATION SCIENCE AND ENGINEERING $1.09M
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $270,635