Finding 1203101 (2025-001)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2025

Accepted

2026-03-30

Audit: 396305

Organization: Community Care (ME)

Auditor: BDMP ASSURANCE LLP

AI Summary

Core Issue: Six out of twenty vendor checks did not verify compliance with 2 CFR 180.300, risking engagement with excluded parties.
Impacted Requirements: Failure to verify vendors against the SAM exclusion list violates federal regulations for entities receiving federal funds.
Recommended Follow-up: Establish a formal policy for vendor verification to ensure compliance with suspension and debarment checks.

Finding Text

Program(s) Affected AL #14.267, Continuum of Care Program, U.S. Department of Housing and Urban Development, agreement period December 1, 2023 – November 30, 2025. Criteria 2 CFR 180.300 details the requirement when, “entering a covered transaction with another person at the next lower tier, they must verify that the person with whom they intend to do business is not excluded or disqualified. This is done by (a) checking System for Award Management (SAM) exclusions; or (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person.” Condition and Context For 6 out of 20 selections, we were unable to test for compliance with the requirements of 2 CFR 180.300 for verifying a vendor is not excluded or disqualified from doing business with an entity that receives federal funds, as there was no auditable evidence of the contractors being verified for exclusion through suspension or debarment. Questioned Costs N/A Cause and Effect The Organization currently lacks a formal policy to review vendors against the SAM exclusion list, collecting a formal certification from the vendor or adding a clause to the covered transaction with the vendor. Without a formal policy addressing the process of suspension and debarment check, there is risk of working with a suspended or debarred entity resulting in non-prudent use of federal funds. Repeat Finding? No. Recommendation We recommend implementing a formal process when entering arrangements with external parties to check they are not suspended or debarred on the SAM Exclusions list. Views of Responsible Officials and Planned Corrective Actions Management agrees with finding. See attached Planned Corrective Actions.

Corrective Action Plan

Corrective Action Plan for Finding 2025-001 Community Care agrees with this finding. The Accounts Payable person will provide the information for new vendors to the Accountant. In turn the Accountant will check to make sure the vendor is not excluded or disqualified from doing business with an entity that receives federal funds. The Accountant will then inform the Accounts Payable person if the vendor is able to do business with Community Care. There will be a check off list that includes dates these were checked and communicated with Accounts Payable. Community Care will work on going through our current vendor list to ensure they are not disqualified to do business with us because of the federal funding. The initial phase of this will be done each week with the information from any payments to vendors before the payments go out. Started this week. Responsible Official: Brenda L. Volz, Accountant Date of Corrective Action: Current vendors have been reviewed and there are no vendors found on SAM exclusionary lists. Community Care will add this step to its purchasing policies and procedures to be in effect April 1, 2026.

Other Findings in this Audit

1203098 2025-002

Material Weakness Repeat
1203099 2025-003

Material Weakness Repeat
1203100 2025-001

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
93.575	CHILD CARE AND DEVELOPMENT BLOCK GRANT	$645,555
93.558	TEMPORARY ASSISTANCE FOR NEEDY FAMILIES	$448,218
14.267	CONTINUUM OF CARE PROGRAM	$342,211
93.557	EDUCATION AND PREVENTION GRANTS TO REDUCE SEXUAL ABUSE OF RUNAWAY, HOMELESS AND STREET YOUTH	$206,301
14.231	EMERGENCY SOLUTIONS GRANT PROGRAM	$61,800
84.425	EDUCATION STABILIZATION FUND	$60,062
97.024	EMERGENCY FOOD AND SHELTER NATIONAL BOARD PROGRAM	$22,500