50000 – Procurement, Suspension & Debarment (Material Weakness, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: Southwest SELPA Program Name: Special Education Cluster (IDEA) Federal Financial Assistance Listing: 84.027, 84.027A, 84.173 Award Identification Number: 13379, 15197, 13430 Award Year: 2025 Compliance Requirements: I. Procurement, Suspension & Debarment Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria Title 2, Code of Federal Regulations, Part 180, Subpart C, Section 180.300 provides procedures that must be followed by recipients and subrecipients of Federal awards to avoid entering into covered transactions with certain parties that are debarred, suspended, or excluded from participation in Federal assistance programs. These procedures include searching for such exclusions on the System of Award Management (SAM), collecting a certification from such parties, or adding a clause or condition to the covered transaction with those parties. Additionally, Title 2, Code of Federal Regulations, Part 200 (Appendix II to Part 200) provides the provisions required to be contained in all contracts made by non-Federal entities. Condition The District does not have procedures in place to ensure compliance with required procedures identified in Title 2, Code of Federal Regulations, Part 180, Subpart C, Section 180.300, or Title 2, Code of Federal Regulations, Part 200, Appendix II to Part 200 or Title 2, Code of Federal Regulations, Part 200. The provisions covering the following were noted to be missing from the contracts reviewed: 1. Clean Air Act and Federal Water Pollution Control Act 2. Suspension and Debarment 3. Byrd Anti-Lobbying Cause The condition identified appears to have materialized due to the District's lack of awareness of requirements under Title 2, Code of Federal Regulations, Part 180, Subpart C, Section 180.300 and Title 2, Code of Federal Regulations, Part 200. Effect The District has been engaging in procurement activities without verifying if parties are suspended or debarred from participation in Federal assistance programs. The District currently assumes all the risk of non-compliance with requirements stated under Title 2, Code of Federal Regulations, Part 180, Subpart C, Section 180.300 due to the lack of implemented review and monitoring procedures. Additionally, the District has been entering into contracts that do not have all the contract provisions required under Title 2, Code of Federal Regulations, Part 200. Questioned Costs As a result of the condition identified above, a total of $329,703 in questioned costs were identified. Context/Sampling: A nonstatistical sample of three out of four contracts were selected for procurement, suspension & debarment testing. Repeat Finding No. Recommendation The District should review the requirements stated in Title 2, Code of Federal Regulations, Part 180, Subpart C, Section 180.300 and Title 2, Code of Federal Regulations, Part 200, and implement a procedure to address the deficiencies currently identified with the District's procurement process.