Finding Text
Finding Number:2022-003 Information on the Federal Program: Federal Agency: United States Department of Education (ED) Program Name: COVID-19 ? Education Stabilization Funds (Part B) AL: 84.425 Federal Award Identification Number: N/A Federal Award Year: Year Ended June 30, 2022 Specific Requirement: Required by 2 CFR, Part 200 for federally funded programs, when an institution enters into a covered transaction with an entity or individual, the institution must verify that the vendor is not suspended or debarred or otherwise excluded from participating in federal programs. Generally, a covered transaction is a transaction expected to equal or exceed $25,000 and be funded with federal dollars. This verification may be accomplished by checking the System for Award Management (SAM), or by adding a clause or condition to the covered transaction. Condition Found: During our audit, we noted that management did not review the SAM for vendors and employees meeting the covered transaction threshold as is defined in their year-end close checklist. Context: We noted there were 3 vendors exceeding $25,000 funded by the program. Based on our testing, none of the vendors exceeding the $25,000 limit were included in the SAM and received payments funded by the University?s major programs. Questioned Costs: None. Cause and Effect: The University was aware of the requirement to verify vendors and employees and they have a process established as part of their year-end close, but the review was not completed. Since this process was not performed, there is a greater risk of vendors and employees that are included on the SAM being disbursed funds through federal funds Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the University follow established procedures for comparing vendors and employees against the SAM and maintain documentation that the comparison has been performed. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding and the recommendation. See Corrective Action Plan.