Finding Text
2025-001: Debarred, suspended, excluded, or disqualified individual or entity Federal Department: Department of the Treasury Assistance Listing #: 21.027 Internal Controls Material Weakness Category of Finding – Procurement, Suspension, and Debarment Criteria - Uniform Guidance requires that Beacon Interfaith Housing Collaborative determine whether any individual or entity receiving federal funds is currently debarred, suspended, excluded, or disqualified by the Department of the Treasury, or any other Federal department or agency, and report within 30 days. Based on this criteria, Beacon Interfaith Housing Collaborative was required to determine whether vendors selected to complete the construction of the housing project known as 545 Snelling LLC were debarred, suspended, excluded, or disqualified prior to making any payments to them. Condition - Beacon Interfaith Housing Collaborative could not produce documentation or did not perform any procedures to determine whether vendors that were selected were currently debarred, suspended, excluded, or disqualified. Context - We tested a sample of the vendors selected for the construction of 545 Snelling LLC. The results of our testing indicated that none of the vendors selected were suspended or debarred. Cause - Beacon Interfaith Housing Collaborative personnel did not retain the required documentation. Effect - Disbursement of federal funds to a person or entity that is currently debarred or suspended could occur and not be reported. Failure to report such a disbursement may result in required repayment of the federal award received by Beacon Interfaith Housing Collaborative and render Beacon Interfaith Housing Collaborative ineligible to apply for additional federal awards in future funding rounds. Recommendation - We recommend that management implement a policy to test and retain results whether individuals or entities receiving funds are currently debarred or suspended, and to report the results if necessary. Auditee’s comments and response - Beacon Interfaith Housing Collaborative is currently updating its policies to require retaining documentation from checks that verify whether individuals or entities serving as vendors are debarred or suspended. Responsible party for corrective action: Chris LaTondressse, President and CEO