Finding 34141 (2022-001)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2022-12-07

AI Summary

  • Core Issue: A vendor paid over $25,000 was not verified for suspension or debarment status, risking noncompliance.
  • Impacted Requirements: Nonfederal entities must ensure vendors are not suspended or debarred, and a suspension and debarment policy is required.
  • Recommended Follow-up: Verify and document vendor status for all federal fund payments over $25,000 and establish a suspension and debarment policy.

Finding Text

Criteria or specific requirement: Nonfederal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet other criteria as specified in 2 CFR section 180.220. All nonprocurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. In addition, a suspension and debarment policy is required to be in place. Condition: During testing of one vendor paid over $25,000, it was noted there was no documentation to ensure one vendor was not suspended or debarred at the time of purchase. Due to no documentation of the vendor, there was also no review of the vendor. In addition, it was noted the College does not have an approved suspension and debarment policy. Questioned costs: None Context: During our testing, CLA noted one vendor was not checked to ensure they are not suspended or debarred at the time of purchase. In addition, due to not verifying the vendor, there is no review of the vendor. Lastly, it was noted the College does not have an approved suspension and debarment policy. Cause: The control system to prevent payment to a suspended and barred vendor was not in place. Effect: The College could have paid a vendor who is suspended or barred at the time of purchase. Repeat Finding: No Recommendation: CLA recommends for every vendor being paid with federal funds a cumulative amount of $25,000 for the fiscal year to be verified and documented the vendor is not suspended or barred. In addition, CLA recommends the College to implement a suspension and debarment policy. Views of responsible officials: There is no disagreement with the audit finding.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring

Other Findings in this Audit

  • 34138 2022-001
    Significant Deficiency
  • 34139 2022-001
    Significant Deficiency
  • 34140 2022-001
    Significant Deficiency
  • 610580 2022-001
    Significant Deficiency
  • 610581 2022-001
    Significant Deficiency
  • 610582 2022-001
    Significant Deficiency
  • 610583 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $2.19M
84.425 Covid-19 Higher Education Relief Funding (heerf) Student Aid Program $2.10M
84.268 Federal Direct Student Loans $2.00M
84.425 Covid-19 Higher Education Relief Funding (heerf) Institutional Program $1.91M
84.042 Trio - Student Support Services $382,218
93.575 Child Care Resources and Referral Network $302,109
84.044 Trio - Educational Talen Search $283,839
84.047 Trio - Upward Bound $258,933
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $250,000
84.007 Federal Supplemental Education Opportunity Grants $122,750
84.048 Carl Perkins Vocational Education $97,474
17.261 Strengthening Community Colleges Training Grants $84,312
84.033 Federal Work Study Program $76,237
84.425 Covid-19 Governor's Emergency Education Relief (geer) Fund $40,797
10.527 New Beginnings for Tribal Students $34,075
16.575 Voca Funding Initiatives to Address Or Victim Service Gaps 2nd Release $31,076
84.002 Wioa Title II Adult Education & Family Literacy $20,134
59.037 Sba Portable Assistance Project $14,027
45.310 Covid-19 Grants to State - Library Cares Act $8,543
43.008 Office of Stem Engagement (ostem) $6,784
93.575 Child Care and Development Block Grant $2,381
10.555 Summer Food Service Food Program for Children $980