Finding 1173248 (2023-002)

Procurement, Suspension, and Debarment Formula Grants for Rural Areas Criteria: A recipient of federal awards is required to ensure that contractors are checked against the debarment list and ensure there are controls in place over procurement per 2 CFR section 180.220. Condition and Context: The Organization did not check contractors against the debarment list. The Organization does have a formally documented process in place to ensure all procurement requirements were completed accurately and timely. Cause: The Organization was not aware that they needed to check vendors against the debarment list. Effect or Potential Effect: Without checking vendors against the debarment list, the Organization is unable to ensure that federal regulations were complied with. Recommendation: We recommend the Organization update their policies and procedures manual to ensure that they test contractors to the debarment list when expenses reach federal limits and that proof of the search is retained. Identification of Repeat Audit Finding: No Responsible Official’s Response: Management agrees with the recommendation to establish and follow a documented internal control process over the review of procurement. Staff will work with management to ensure that contractors with expenses over federal limits will be tested against the debarment list and support such. Additionally, staff members working in areas concerning this process will be trained to ensure process adherence.