Finding Text
Criteria or specific requirement: Per 2 CFR 200.303, requires that non-federal entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with federal statutes, regulations, and the terms and conditions of the federal award. Effective internal controls should include procedures in place to ensure the required certifications for covered contracts and subawards are received, documented, and contracts are not made with a debarred or suspended party. Condition: During our testing of three covered transactions, we noted one vendor did not have proper supporting documentation for suspension and debarment procedures for vendors. Questioned costs: None. Context: One covered transaction tested did not have proper supporting documentation for suspension and debarment procedures. Cause: Lack of sufficient controls in place to ensure that suspension and debarment checks were performed prior to entering into contracts. Effect: Failure to obtain the required certifications or perform verification procedures with the SAM could result in the payment of federal funds to vendors that are suspended or debarred from participation in federal assistance programs. Repeat Finding: No Recommendation: We recommend the District obtain certifications from vendors stating their organization is not suspended, debarred, or otherwise excluded from participation in federal assistance programs or document the procedures performed to verify the vendor is not identified as suspended or debarred on SAM.gov. Views of responsible officials: [There is no disagreement with the audit finding.]