Finding Text
Finding 2025-001 – Procurement, suspension and debarment Assistance Listing #: 14.267 Criteria: In accordance with the Uniform Guidance, recipients who receive federal funding shall fully comply with Subpart C of 2 CFR Part 180, which requires nonfederal entities to verify that the person/entity with whom you intend to do business is not excluded or disqualified, if the expected payments are equal to or exceed $25,000. A non-federal entity has three options for performing this verification: 1) checking SAM exclusions; 2) collecting a certification from that person; or 3) adding a clause or condition to the covered transaction with that person. Condition: During fiscal year 2025, MSP contracted with several vendors for products and services who were paid more than $25,000. There was no evidence documenting that these vendors were checked for suspension and debarment prior to payment. Cause: There were several vendors who were paid cumulatively more than $25,000 during fiscal year 2025. Most of these payments related to payments to client landlords. Documentation was not retained and we were unable to verify that the vendors had been checked for suspension and debarment. Effect: We were unable to determine that the required checks for suspension and debarment had been performed as the documentation was not retained. Questioned Costs: N/A Repeat Finding: Yes Recommendation: We recommend MSP perform follow its internal processes and retain documentation of the suspension and debarment check in the vendor file as support for vendors who are paid or expected to be paid over $25,000 prior to funds being disbursed. Response: MSP will still perform the verifications by using the System for Award Management (SAM) and Office of Inspector General (OIG) websites. We will start saving documentation that will support the required vendor verifications.