Finding 1215677 (2025-001)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-05-27
Audit: 402332
Organization: Legal Aid of Western Ohio, INC (OH)

AI Summary

  • Core Issue: The Organization failed to consistently verify vendor suspension and debarment before entering into contracts, violating 2 CFR § 180.300.
  • Impacted Requirements: Pre-award verification of vendors is essential to ensure compliance and prevent Federal funds from going to ineligible parties.
  • Recommended Follow-Up: Update procurement procedures to mandate documented verification of vendor status prior to contracts, and retain this documentation for compliance purposes.

Finding Text

Federal Agency: Legal Services Corporation (LSC) Federal Program Name: LSC Grants Assistance Listing Number: 09.436183 Federal Award Identification Number and Year: 09.436183 - 2025 Award Period: January 1, 2025 – December 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Under 2 CFR § 180.300, a participant must verify that a vendor is not excluded before entering into a covered transaction. These requirements are intended to ensure that Federal funds are not awarded to suspended or debarred parties at the time the covered transaction is executed. Condition: The Organization performed periodic suspension and debarment checks of vendors throughout the year, however, the Organization did not consistently verify that vendors were not suspended or debarred prior to entering into covered transactions, as required. Questioned costs: None Context: In a sample of 5, 3 vendors were not verified before the contract was executed for suspension and debarment. The Organization maintained a practice of periodically reviewing all vendors against SAM.gov during the fiscal year. These periodic reviews did not identify any vendors that were suspended or debarred during the audit period. Cause: Procedures emphasized periodic monitoring rather than pre‑award verification required by federal regulations. Effect: Because suspension and debarment verification was not performed before entering into covered transactions, the Organization did not comply with 2 CFR § 180.300. While no suspended or debarred vendors were identified through subsequent reviews, the lack of a pre‑award verification control increased the risk that Federal funds could be obligated to an ineligible party. Repeat Finding: No Recommendation: We recommend that the Organization update its procurement and vendor approval procedures to require documented suspension and debarment verification prior to entering into covered transactions, in accordance with 2 CFR § 180.300. Documentation of the verification should be retained in the procurement or contract file to demonstrate compliance. Views of responsible officials: There is no disagreement with this audit finding.

Corrective Action Plan

Legal Services Corporation Grant – Assistance Listing No. 09.436183 Recommendation: We recommend that the Organization update its procurement and vendor approval procedures to require documented suspension and debarment verification prior to entering into covered transactions, in accordance with 2 CFR §§ 180.300 and 180.320. Documentation of the verification should be retained in the procurement or contract file to demonstrate compliance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management agrees with the finding. During 2025, periodic suspension and debarment reviews were performed; however, the process did not require verification prior to entering into covered transactions. Management will revise its procurement policies and procedures to require suspension and debarment verification before execution of covered contracts, including contracts funded with LSC or other federal funds that are expected to equal or exceed $25,000, contracts requiring LSC or federal approval, and other covered transactions. Documentation of the verification will be retained with the procurement file and must be dated prior to contract execution. Corrective Action: Effective immediately, LAWO will require a SAM.gov Exclusions search, vendor certification, or suspension/debarment clause before entering into covered transactions. The preferred method will be a SAM.gov Exclusions search. Procurement policies and procedures will be updated to include this required step. The staff member responsible will retain the dated verification in the procurement file. Name(s) of the contact person(s) responsible for implementing corrective action: Scot Henshaw, Manager of Business Operations Planned completion date for corrective action plan: July 1, 2026

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1215674 2025-001
    Material Weakness Repeat
  • 1215675 2025-001
    Material Weakness Repeat
  • 1215676 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
09.436 Basic Field Grant $4.16M
09.436 Agricultural Worker $194,243
16.529 EDUCATION, TRAINING, AND ENHANCED SERVICES TO END VIOLENCE AGAINST AND ABUSE OF WOMEN WITH DISABILITIES $139,291
16.524 LEGAL ASSISTANCE FOR VICTIMS $101,866
16.021 JUSTICE SYSTEMS RESPONSE TO FAMILIES $59,436
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $37,799
64.056 LEGAL SERVICES FOR HOMELESS VETERANS AND VETERANS AT-RISK FOR HOMELESSNESS GRANT PROGRAM $28,621
14.537 EVICTION PROTECTION GRANT PROGRAM $24,401
09.436 Technology Initiative Grant - Business Process Analysis $21,478
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $17,466
93.044 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART B, GRANTS FOR SUPPORTIVE SERVICES AND SENIOR CENTERS $17,198
16.575 CRIME VICTIM ASSISTANCE $6,039
93.667 SOCIAL SERVICES BLOCK GRANT $5,335
09.436 Pro Bono Innovation Fund Program Planning $4,142
64.033 VA SUPPORTIVE SERVICES FOR VETERAN FAMILIES PROGRAM $3,630