Finding Text
Finding No: 2024-005 Type: Compliance: Procurement, Suspension, and Debarment Major Program Affected: Agency: U.S. Department of Agriculture Program Name: American Rescue Plan Technical Assistance Investment Program Assistance Listing No.: 10.234 Award No.: 2023-70417-39226 Compliance Requirement: Procurement and Suspension and Debarment I Condition: During our testing of procurement transactions charged to ALN 10.234, we noted that the auditee did not perform or document required suspension and debarment procedures for vendors selected under this program. For the items tested, there was no evidence that the auditee (1) checked the System for Award Management (SAM.gov), or (2) obtained certifications from vendors. As result, the auditee did not demonstrate compliance with federal requirements designed to prevent awards to suspended or debarred parties. Criteria: Federal procurement requirements for this program require the auditee to verify that contractors and certain other parties are not suspended or debarred from doing business with the federal government, generally by checking SAM.gov, obtaining a vendor certification, or including a suspension and debarment clause in the contract. These procedures are intended to ensure that federal funds are not expended with ineligible parties. Amount: Not applicable Cause: Management did not implement a formal process or control to perform and document suspension and debarment checks as part of the procurement process for federally funded purchases. Effect or Potential Effect: Because suspension and debarment procedures were not performed or documented, there is a risk that federal funds could be, or could have been, expended with vendors who are suspended or debarred, which could result in questioned costs and potential repayment obligations, as well as increased scrutiny of the auditee’s procurement practices. Repeat Audit Finding: No