Finding Text
2022-001: Suspension and Debarment Federal Agency: Department of the Treasury and Department of Health and Human Services Federal Program: Education Partnership Coalition Grant and ESSA ? Preschool Development Grants Birth through Five Federal Assistance Listing Number: 21.027 and 93.434 Pass-Through Agency: MN Department of Education and MN Department of Health and Human Services Pass-Through Number(s): None Award Period: November 1, 2021 through June 30, 2023 and February 8, 2021 through December 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The Organization should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted the Organization did not have adequate internal controls designed to ensure vendors and subrecipients were not suspended or debarred. Questioned costs: None Context: During our testing, it was noted that the Organization was not reviewing vendors or subrecipients prior to entering into a contract to ensure the vendor or subrecipient was not on the suspended or debarred vendor list maintained by the General Services Administration. Cause: The Organization has not followed its formal procurement policy manual as it relates to suspension and debarment. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: No Recommendation: We recommend the Organization design controls to ensure an adequate review process is in place to review potential contractors to determine they are not suspended or debarred. Views of responsible officials and planned corrective actions: There is no disagreement with the finding.