Finding Text
2022-003 - Suspension and Debarment Finding Type Significant Deficiency in Internal Control over Compliance and Immaterial Noncompliance Criteria 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 The condition impacted two transactions selected for testing. During the audit, the vendors were checked via Sam.gov and determined to not be included as suspended 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 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. View of Responsible Official and Planned Corrective Action The Organization agrees with the recommendations made in this finding. The Organization will examine the controls in place and prepare a Corrective Action Plan.