Finding 1172675 (2025-003)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-02-06

AI Summary

  • Core Issue: The Town of North Smithfield lacks a procedure to verify if entities in covered transactions are suspended or debarred.
  • Impacted Requirements: This affects compliance with 2 CFR 180.995 and related regulations for contracts over $25,000 using federal funds.
  • Recommended Follow-Up: Implement verification procedures using SAM.gov to ensure compliance before entering into covered transactions.

Finding Text

Criteria: When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR 180.995 and agency adopting regulations, is not suspended, or debarred or otherwise excluded from participating in the transaction. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR 180.220. This requirement applies to contracts and purchases entered into to procure goods and services with Coronavirus State and Local Fiscal Recovery Funds. Condition: The Town of North Smithfield does not have a specific procedure in place for verifying that an entity with which it plans to enter into a covered transaction is not suspended, debarred, or otherwise excluded. Cause: The Town has not established suspension and debarment policies and procedures for federal awards. Effect: Contracts for goods and service that were “covered transactions” were entered into prior to verifying that an entity was not suspended, debarred, or otherwise excluded. Questioned Costs: None Recommendation: We recommend that the Town implement verification procedures to ensure that an entity with which it plans to enter into a covered transaction is not suspended, debarred, or otherwise excluded. Views of Responsible Officials and Corrective Action: For any bids that intend to use federal funding through its award and execution, the Town will use a suspension and debarment certification that will require the bidder’s signature, as well as verifying the awarded bidder through SAM.gov. Any other purchases made by the Town using federal funds will require the vendor to be verified through SAM.gov. Anticipated Completion Date: This policy with be in effect immediately. Contact Person: Antony St. Onge, Purchasing Agent

Corrective Action Plan

Name of Contact Person: Antony St. Onge, Purchasing Agent Corrective Action: For any bids that intend to use federal funding through its award and execution, the Town will use a suspension and debarment certification that will require the bidder’s signature, as well as verifying the awarded bidder through SAM.gov. Any other purchases made by the Town using federal funds will require the vendor to be verified through SAM.gov. Proposed Completion Date: This policy with be in effect immediately.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1172673 2025-003
    Material Weakness Repeat
  • 1172674 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.027 SPECIAL EDUCATION GRANTS TO STATES $651,026
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $539,911
16.710 PUBLIC SAFETY PARTNERSHIP AND COMMUNITY POLICING GRANTS $247,154
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $231,408
16.753 CONGRESSIONALLY RECOMMENDED AWARDS $140,000
97.039 HAZARD MITIGATION GRANT $103,536
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $72,709
14.251 ECONOMIC DEVELOPMENT INITIATIVE, COMMUNITY PROJECT FUNDING, AND MISCELLANEOUS GRANTS $69,696
10.555 NATIONAL SCHOOL LUNCH PROGRAM $51,808
84.425 EDUCATION STABILIZATION FUND $50,000
84.371 COMPREHENSIVE LITERACY DEVELOPMENT $45,499
10.553 SCHOOL BREAKFAST PROGRAM $32,340
97.137 STATE AND LOCAL CYBERSECURITY GRANT PROGRAM TRIBAL CYBERSECURITY GRANT PROGRAM $30,724
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $25,923
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $24,276
93.069 PUBLIC HEALTH EMERGENCY PREPAREDNESS $20,332
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $11,858
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $11,337
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $6,332
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $4,972
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $2,538