Finding 367073 (2022-001)

Finding 2022-001 Significant deficiency in internal controls over compliance and instances of noncompliance with suspension and debarment. Federal Agency: Department of the Treasury Program Title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Number: HOST-202263678 Award Period: July 1, 2022, through June 30, 2024 Criteria Procurement requirements contained in Title 2 US Code of Federal Regulations Part 180 - OMB Guidelines to Agencies on Governmentwide Debarment and Suspension requires a non-Federal entity to ensure that covered transactions are not entered into with vendors that are disqualified by the U.S. Government. Condition/Context for Evaluation Our audit testing of procurement transactions included one procurement out of one tested that did not include adequate documentation to support that Impact Charitable had verified that the third party was not listed as suspended or debarred by the U.S. Government. Impact Charitable did perform the search and verified that that third party was neither listed as suspended or debarred by the U.S. Government subsequent to the year under audit. Effect or Potential Effect The effect is that covered transactions could be entered into with parties that are either suspended or debarred. Questioned Costs Not Applicable Cause Impact Charitable did not follow their documented procurement policy over suspension and debarment to ensure that verification was performed and documented to confirm that third parties were not listed as suspended or debarred by the U.S. Government when entering into covered transactions. Repeat Finding Finding 2022-001 is not a repeat finding. Recommendation We recommend that Impact Charitable implement the necessary internal controls to ensure that the documented policy over suspension and debarment is followed. Views of Responsible Officials of Auditee Management agrees with the finding and has provided the accompanying corrective action plan.