Finding 1236109 (2025-002)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-09-23
Audit: 411731
Auditor: CBIZ CPAS PC

AI Summary

  • Core Issue: EPIC did not document suspension and debarment checks for contractors before procurement.
  • Impacted Requirements: This violates procurement standards outlined in 2 CFR sections 200.318-326.
  • Recommended Follow-Up: Implement a process to review vendor suspension/debarment and maintain documentation to ensure compliance.

Finding Text

Criteria Uniform Guidance requires non-federal entities to follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. EPIC is required to perform and document suspended and debarment searches for potential vendors prior to procuring services from the contractor. Condition and Context For the contractor tested, EPIC had no documentation to support that its suspension and debarment verification procedures were performed prior to procuring services from contractors. Therefore, we have concluded that such verifications were not timely performed. Cause The turnover within the accounting department restricted EPIC’s current team from locating the support requested. Effect Without abiding by the documentation requirements of 2 CFR Part 200, there is an increased risk that procurement activities may not be conducted in compliance with federal requirements, potentially leading to unallowable costs or questioned costs. Repeat Finding No. Recommendation We recommend that management establish a process for the review of vendor suspension or debarment prior to entering vendor contracts and retaining documentation of review as proof that the process has been completed. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Corrective Action Plan

Finding No. 2025-002: Procurement- Compliance Finding and Significant Deficiency in Internal Control over Compliance EPIC acknowledges that documentation confirming vendor suspension or debarment was not present in various vendor files for FY25. Corrective Action Plan: EPIC has updated its vendor onboarding process to include confirmation of all new vendors prior to being awarded contracts. In addition, all current vendors will be confirmed eligible to receive federal funds during the RFP process for each subsequent project award. Contact Person Responsible for Corrective Action: Thomas Sperti, Chief Financial Officer

Categories

Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Other Findings in this Audit

  • 1236108 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
66.203 ENVIRONMENTAL FINANCE CENTER GRANTS $103,969
93.569 COMMUNITY SERVICES BLOCK GRANT $94,518
10.932 REGIONAL CONSERVATION PARTNERSHIP PROGRAM $10,803