Finding Text
Finding Number: 2025-007 Federal Program: Federal Agency: U.S. Department of Defense, U.S. Department of Transportation, National Aeronautics and Space Administration, National Science Foundation, U.S. Department of Health and Human Services, and U.S. Department of the Interior Program Names: Research and Development Cluster and Congressionally-Identified Projects AL: 12,903, 12,905, 12,910, 20.701, 43.008, 47.076, 47.083, 93.310, 93.493, 93.859, and 11.617 Federal Award Identification Numbers: Various, refer to the SEFA Federal Award Year: 2025 Specific Requirement: Required by 2 CFR, Part 200 for federally funded programs, when an institution enters into a covered transaction with an entity or individual, an institution must verify that the vendor is not suspended or debarred or otherwise excluded from participating in federal programs. Generally, a covered transaction is a transaction expected to equal or exceed $25,000 and be funded with federal dollars. This verification may be accomplished by checking the System for Award Management (SAM), formerly the Excluded Parties List System, maintained by the General Services Administration, collecting a certification from the vendor, or by adding a clause or condition to the covered transaction. Condition Found: The Organization does not currently have an internal control procedure designed to identify vendors and employees meeting the covered transaction threshold and crosschecking those vendors and employees against SAM. Context: We randomly selected, using a nonstatistical sample, 25 vendors and 40 employees funded by the award. None of the vendors or employees selected for testing were identified on SAM. Questioned Costs: None noted Cause and Effect: The Organization was not aware of the requirement to verify vendors and employees against SAM on a regular basis. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend the Organization implement a process to compare all vendors and employees meeting the covered transaction threshold funded by a federal program by SAM on a regular basis and when a new vendor or employee is entered into the accounting system. The Organization should maintain documentation that the comparison has been performed. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding and the recommendation. See Corrective Action Plan attached.