Finding 1222649 (2025-001)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-07-01
Audit: 406219
Organization: Score Association (VA)
Auditor: WATSONRICE LLP

AI Summary

  • Core Issue: SCORE's vendor verification process lacks consistent documentation to confirm checks against SAM.gov for suspension and debarment before engaging federal funds.
  • Impacted Requirements: Federal standards mandate verification of vendor eligibility prior to contract award or renewal, including maintaining complete procurement documentation.
  • Recommended Follow-Up: Implement periodic verification for ongoing contracts and establish a standardized procedure for retaining dated SAM.gov verification documentation for all vendors.

Finding Text

Condition SCORE has an established procedure requiring review of vendors in the System for Award Management (SAM.gov) to ensure vendors are not suspended or debarred prior to engagement using federal funds. During our testing of suspension and debarment for new and renewed contracts, we noted that the documentation provided as evidence that SCORE conducted the required checks did not consistently include clear evidence that vendors were verified in SAM.gov for suspension, debarment, and active registration status at the time of award or renewal. In several instances, the documentation provided lacked dated SAM.gov search results or other proof of verification, making it difficult to confirm the date the required eligibility checks were completed before obligating federal funds. Additionally, for multi-year or continuing contracts, certain vendors that were originally vetted at the time of initial engagement did not have documented evidence of a subsequent suspension and debarment verification. Criteria Federal procurement standards require non-Federal entities to: ▪ Verify that vendors are not suspended or debarred prior to entering into or renewing an agreement (2 CFR § 180 and § 200.214). ▪ Maintain complete procurement documentation, including approvals, selection methods, contract documents, and evidence of compliance with procurement rules, in accordance with Uniform Guidance procurement requirements (2 CFR § 200.318–327). A SAM.gov verification—via screenshot, printout, or automated system—is an acceptable form of documentation. Cause While SCORE has implemented procedures to verify new vendors through SAM.gov, the procedures did not explicitly require periodic verification for existing vendors whose contracts continue across multiple years or are renewed. Also, while personnel may be performing eligibility checks for new vendors, there is no standardized requirement or checklist to ensure that proof of the verification (such as dated screenshots or search results) is consistently saved. Effect As a result, the organization lacks sufficient documentary evidence to demonstrate that the required SAM.gov verifications were performed at the time of contract award or renewal. Although no vendors were identified as suspended or debarred, the absence of supporting documentation limits the organization’s ability to substantiate compliance with federal procurement requirements. Also, there is a risk that an existing vendor could become suspended or debarred after the initial contract award and continue to receive payments without updated verification. Recommendation We recommend that SCORE expand its existing vendor compliance procedures to include periodic verification of suspension and debarment status for multi-year or continuing service agreement vendors. We also recommend that management implement a standard procedure requiring documentation of dated SAM.gov verification for all vendors prior to contract award and renewal. These dated SAM.gov verifications should be retained as part of the vendor file.

Corrective Action Plan

SCORE acknowledges the auditors’ recommendation and confirms that procedures are already in place to verify new vendors against the SAM.gov suspension and debarment database prior to engagement. Management agrees that this procedure should be extended to include periodic verification for contract renewals and multi-year vendor relationships. SCORE will also update its vendor compliance procedures to require documented SAM.gov verification at the time of vendor onboarding and periodically thereafter for continuing vendors and will implement a centralized tracking mechanism to document verification dates.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1222647 2025-001
    Material Weakness Repeat
  • 1222648 2025-001
    Material Weakness Repeat
  • 1222650 2025-002
    Material Weakness Repeat
  • 1222651 2025-002
    Material Weakness Repeat
  • 1222652 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
59.026 SCORE $969,360
00.000 City of Irvine, CA to SCORE Orange County, CA $18,754
21.027 Northern Maine Development Commission to SCORE M $15,000