Finding Text
Identification of the federal program: Assistance Listing Number 21.027 - COVID-19 – Coronavirus State and Local Fiscal Recovery Funds - U.S. Department of Treasury - Federal award identification number – 38080716K and ARPA100007 - Federal award year – 2022 and 2023 Significant Deficiency Criteria: Non Federal entities must not enter into covered transactions with parties that are debarred, suspended, or otherwise excluded. Entities must follow the procurement, suspension and debarment regulations in accordance with 2 CFR Part 180. Condition: The Company was not able to evidence its verification that vendors paid in connection with the Coronavirus State and Local Fiscal Recovery Funds program were not suspended or debarred. Cause: The Company did not implement procedures to retain documentation evidencing the performance of specific internal control activities over compliance. Effect: There is an increased risk of improper use of grant funds. Questioned costs: None. Context: The Company could not provide evidence of suspension and debarment review for program expenditures totaling $2,060,319 of the total $4,144,691 on the schedule of expenditures of Federal awards. Identification as a repeat finding, if applicable: This is not a repeat finding. Recommendation: We recommend management review current processes, polices and procedures to ensure evidence of suspension and debarment verification is properly maintained. View of responsible officials and planned corrective actions: Management agrees with the finding and recommendation.