Finding Text
Type of Finding: Significant Deficiency in Internal Control Criteria or specific requirement: The Federal Register 79 FR 75879 states a non-Federal participant in a covered transaction with an entity at a lower tier must verify that the entity is not suspended, debarred, or otherwise excluded from participating in the transactions. Condition: During our testing of five entities with which the College entered into covered transactions, we noted the College was not able to provide sufficient evidence for verification of any of the entities before initiating the transactions. Questioned costs: None Context: Procedures to verify vendors have historically been in place, but it was noted the College?s control was not consistently in place during the fiscal year. Cause: Due to changes in the College's purchasing personnel, the process to verify entities during the fiscal year was not operating effectively. Effect: The College could possibly initiate a transaction with an entity not possessing the ability to perform successfully under the terms and conditions of a proposed procurement, and the Federal agency may disallow costs under the Federal program. Repeat finding: No Section III ? Federal Award Findings and Questioned Costs (Continued) 2022 ? 001 (Continued) Recommendation: We recommend the College review its procedures to adequately document the verification of entities with which it enters into covered transactions as not being suspended or debarred. Views of responsible officials: There is no disagreement with the audit finding.