Finding Text
Compliance Requirement I. Suspension and Debarment Finding Type Significant Deficiency in Internal Control Over Compliance and ComplianceFinding Federal Agency U.S. Department of Treasury Federal Program Title Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number 21.027 Criteria: I. Recipients of the Coronavirus State and Local Fiscal Recovery Funds grant are required to follow Uniform Guidance section 200.214 Suspension and Debarment. These regulations restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: For each of the transactions tested, the Organization did not have documented verification that the vendor was not suspended or debarred. Cause: Procedures were not in place to document the verification that vendors were not suspended or debarred from participation in federal programs or activities. In addition, there is a formal lack of training regarding suspension and debarment policies and documentation required under Uniform Guidance. Effect: Lack of verification (or untimely verification) of vendors' suspension or debarment status could cause federal grant funds to be expended to vendors that are excluded from participation in federal assistance programs or activities. Questioned Costs: None Identification as a Repeat Finding: N/A - this was not reported as a finding in the prior audit report. Context: Of program project files reviewed and selected for testing, none of the project files contained formal support that the contract/vendors were not suspended or debarred from participation in federal programs or activities. Recommendation: We recommend procedures be implemented to ensure that the verification of vendors' suspension and debarment status is documented prior to executing transactions. Views of Responsible Officials: The Organization disagrees with this audit finding.