Finding Text
2022-003 – Suspension and debarment Program: Congressional Appropriations Program (ALN 99.U19) Federal Agency: United States Department of Treasury Criteria: In accordance with 2 CFR 180.300 non-Federal entities are prohibited from entering into covered transactions with parties that are suspended, debarred, or otherwise excluded from participation in Federal programs. The Organization is required to maintain procedures and controls to verify the eligibility of vendors and subrecipients subject to these requirements prior to entering into covered transactions. Condition: The Organization was not able to provide supporting documentation that the Organization verified subrecipients were not suspended or debarred prior to entering into transactions. Cause: The Organization did not maintain supporting documentation that the verification of suspension or debarment was performed prior to entering into the contract. Effect: The auditor noted no instances of noncompliance with the provisions of suspension and debarment; however, we were not able to verify that the Organization followed their internal control procedures to ensure the subrecipient was not suspended or debarred prior to entering the transaction. Questioned Costs: None Context: The Organization could not provide documentation demonstrating that suspension and debarment verification procedures were performed and documented for 2 of 6 subrecipients subject to the requirements of 2 CFR 180.300. Samples were selected using nonstatistical sampling. Repeat Finding: No Recommendation: We recommend the Organization implement procedures to ensure that documentation of the verification process for suspension and debarment is maintained to support the Organization's internal control over compliance. Views of Responsible Officials: See Corrective Action Plan.