Finding Text
Federal agency: Department of Housing and Urban Development Federal program title: Continuum of Care Program FALN Number: 14.267 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: December 1, 2024 – November 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance and Immaterial Noncompliance Criteria or specific requirement: 2 CFR sections 200.212 and 200.318(h); 2 CFR section 180.300; 48 CFR section 52.209-6 outlines that the non-Federal entity must verify that the agency in which it is entering into a contract is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: The Organization did not verify that a vendor utilized was not suspended, debarred, or otherwise excluded prior to entering into a transaction. Questioned costs: None Context: This condition impacted one (1) of one (1) transaction selected for testing. During the audit, the vendor was checked via SAM.gov and determined to not be included as suspend or debarred. Cause: Oversight. Effect: The Organization could potentially enter into a transaction with an entity that has been suspended or debarred. Repeat Finding: No Recommendation: We recommend that the Organization retain documentation that SAM.gov was used to verify that vendors are not suspended, debarred, or otherwise excluded from participating in the transaction prior to contract. To the extent practicable, the Organization can engage with a third party that will verify any new and existing vendors have not been suspended or debarred on a monthly basis. Views of responsible officials: There is no disagreement with the audit finding.