Finding 385649 (2023-004)

Federal Agency: U.S. Department of Transportation Federal Program: Formula Grants for Rural Areas Assistance Listing Number: 20.509 Award Period: 1/1/2023 – 12/31/2023 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: Per Uniform Guidance 200.214 Suspension and Debarment, the Organization is subject to suspension and debarment regulations, which restrict awards, subawards, and contracts within certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Condition: We noted there was no documentation to support the suspension and debarment verification was performed prior to the Organization entering into a contract agreement for one contractor. Questioned Costs: None Context: For a sample of five contractors tested, we noted there was no documentation supporting date of review to ensure the contractor was not suspended or debarred. Cause: There was no documentation of timeline for when contractor was reviewed for suspension and debarment. Effect: Without the proper procedure in place, the Organization may enter into an agreement with a contractor that has been suspended or debarred resulting in unallowable costs being incurred. Repeat Finding: No Recommendation: We recommend the Organization revise its suspension and debarment policy to include process for retaining timestamp of search performed. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the finding.