FAC Explorer

Finding 387642 (2023-007)

-
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-03-28
Audit: 299718
Organization: Plan International Inc. (NY)
Auditor: Pricewaterhousecoopers LLP

AI Summary

  • Core Issue: Suspension and debarment checks were not completed before transactions with vendors, risking non-compliance.
  • Impacted Requirements: Non-federal entities must verify vendors are not suspended or debarred before engaging in covered transactions.
  • Recommended Follow-up: Ensure timely communication between Country Offices and the compliance team to verify vendor status before transactions occur.

Finding Text

Ref 2023-007: Suspension and debarment checks should be performed prior to doing business with certain vendors Federal Agency: U.S. Department of State for Ethiopia South Sudanese Refugee Assistance V and VI; United States Agency for International Development (USAID) Program: Ethiopia: South Sudanese Refugee Assistance V and VI; Ethiopia: BHA Tigray Child Protection Assistance Listing: 19.517 (Ethiopia); 98.001 (Ethiopia) Award #: SPRMCO21CA3181 ETH102315 (Ethiopia), SPRMCO22CA0199 ETH102389 (Ethiopia); 720BHA21GR00199 ETH102324 Award year: FY23 Pass-through: Plan USA, Inc. Criteria: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. When a non-federal entity enters into a covered transaction with an entity at a lower tier, the nonfederal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Condition : Suspension and debarment checks are performed centrally by the compliance team based at Global Hub (‘GH’). The compliance team obtains new vendor data from the finance system SAP on a weekly basis and has a policy to check all vendors regardless of dollar value. Suspension and debarment checks are performed over this list on a weekly basis using a third party ‘Automated Screening Manager’ (‘ASM’) tool. In instances of one-off payments, the Country Office (‘CO’) sends a request via email to the compliance team at GH to perform the suspension and debarment check. The results of the ASM checks are shared with the COs. We identified four samples out of a population of 67 samples where the date of the ASM check was after the date of the transaction with the vendor. Management was therefore unable to evidence that a suspension and debarment check had been performed prior to the transaction taking place. The time period between the transaction dates of our samples and the date of the ASM checks ranged from one day to 11 months. The combined total of the four transactions was $19,108 and they occurred in one region (Ethiopia). Cause: The Global Hub compliance team was not notified on a timely basis of the new vendors by the Ethiopia Country Office and therefore did not perform the suspension and debarment checks prior to the transactions taking place. Effect: Vendors not checked if suspended or debarred prior to doing business with them could lead to non-compliance to Uniform Guidance requirement. Recommendation: Management should ensure that COs are communicating with new vendors on a timely basis to ensure that all vendors are checked for suspension and debarment before they are engaged and transacted with and documentation is maintained demonstrating this check was completed. Views of Responsible Officials and Management’s Corrective Action Plan: Views of responsible officials and management’s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.

Categories

Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking Subrecipient Monitoring

Other Findings in this Audit

  • 387600 2023-003
    Significant Deficiency
  • 387601 2023-004
    Significant Deficiency Repeat
  • 387602 2023-003
    Significant Deficiency
  • 387603 2023-004
    Significant Deficiency Repeat
  • 387604 2023-003
    Significant Deficiency
  • 387605 2023-004
    Significant Deficiency Repeat
  • 387606 2023-006
    -
  • 387607 2023-003
    Significant Deficiency
  • 387608 2023-004
    Significant Deficiency Repeat
  • 387609 2023-003
    Significant Deficiency
  • 387610 2023-004
    Significant Deficiency Repeat
  • 387611 2023-007
    -
  • 387612 2023-003
    Significant Deficiency
  • 387613 2023-004
    Significant Deficiency Repeat
  • 387614 2023-003
    Significant Deficiency
  • 387615 2023-004
    Significant Deficiency Repeat
  • 387616 2023-003
    Significant Deficiency
  • 387617 2023-004
    Significant Deficiency Repeat
  • 387618 2023-003
    Significant Deficiency
  • 387619 2023-004
    Significant Deficiency Repeat
  • 387620 2023-003
    Significant Deficiency
  • 387621 2023-004
    Significant Deficiency Repeat
  • 387622 2023-003
    Significant Deficiency
  • 387623 2023-004
    Significant Deficiency Repeat
  • 387624 2023-003
    Significant Deficiency
  • 387625 2023-004
    Significant Deficiency Repeat
  • 387626 2023-003
    Significant Deficiency
  • 387627 2023-004
    Significant Deficiency Repeat
  • 387628 2023-003
    Significant Deficiency
  • 387629 2023-004
    Significant Deficiency Repeat
  • 387630 2023-003
    Significant Deficiency
  • 387631 2023-004
    Significant Deficiency Repeat
  • 387632 2023-003
    Significant Deficiency
  • 387633 2023-004
    Significant Deficiency Repeat
  • 387634 2023-003
    Significant Deficiency
  • 387635 2023-004
    Significant Deficiency Repeat
  • 387636 2023-003
    Significant Deficiency
  • 387637 2023-004
    Significant Deficiency Repeat
  • 387638 2023-003
    Significant Deficiency
  • 387639 2023-004
    Significant Deficiency Repeat
  • 387640 2023-003
    Significant Deficiency
  • 387641 2023-004
    Significant Deficiency Repeat
  • 387643 2023-003
    Significant Deficiency
  • 387644 2023-004
    Significant Deficiency Repeat
  • 387645 2023-007
    -
  • 387646 2023-003
    Significant Deficiency
  • 387647 2023-004
    Significant Deficiency Repeat
  • 387648 2023-003
    Significant Deficiency
  • 387649 2023-004
    Significant Deficiency Repeat
  • 387650 2023-003
    Significant Deficiency
  • 387651 2023-004
    Significant Deficiency Repeat
  • 387652 2023-003
    Significant Deficiency
  • 387653 2023-004
    Significant Deficiency Repeat
  • 387654 2023-003
    Significant Deficiency
  • 387655 2023-004
    Significant Deficiency Repeat
  • 964042 2023-003
    Significant Deficiency
  • 964043 2023-004
    Significant Deficiency Repeat
  • 964044 2023-003
    Significant Deficiency
  • 964045 2023-004
    Significant Deficiency Repeat
  • 964046 2023-003
    Significant Deficiency
  • 964047 2023-004
    Significant Deficiency Repeat
  • 964048 2023-006
    -
  • 964049 2023-003
    Significant Deficiency
  • 964050 2023-004
    Significant Deficiency Repeat
  • 964051 2023-003
    Significant Deficiency
  • 964052 2023-004
    Significant Deficiency Repeat
  • 964053 2023-007
    -
  • 964054 2023-003
    Significant Deficiency
  • 964055 2023-004
    Significant Deficiency Repeat
  • 964056 2023-003
    Significant Deficiency
  • 964057 2023-004
    Significant Deficiency Repeat
  • 964058 2023-003
    Significant Deficiency
  • 964059 2023-004
    Significant Deficiency Repeat
  • 964060 2023-003
    Significant Deficiency
  • 964061 2023-004
    Significant Deficiency Repeat
  • 964062 2023-003
    Significant Deficiency
  • 964063 2023-004
    Significant Deficiency Repeat
  • 964064 2023-003
    Significant Deficiency
  • 964065 2023-004
    Significant Deficiency Repeat
  • 964066 2023-003
    Significant Deficiency
  • 964067 2023-004
    Significant Deficiency Repeat
  • 964068 2023-003
    Significant Deficiency
  • 964069 2023-004
    Significant Deficiency Repeat
  • 964070 2023-003
    Significant Deficiency
  • 964071 2023-004
    Significant Deficiency Repeat
  • 964072 2023-003
    Significant Deficiency
  • 964073 2023-004
    Significant Deficiency Repeat
  • 964074 2023-003
    Significant Deficiency
  • 964075 2023-004
    Significant Deficiency Repeat
  • 964076 2023-003
    Significant Deficiency
  • 964077 2023-004
    Significant Deficiency Repeat
  • 964078 2023-003
    Significant Deficiency
  • 964079 2023-004
    Significant Deficiency Repeat
  • 964080 2023-003
    Significant Deficiency
  • 964081 2023-004
    Significant Deficiency Repeat
  • 964082 2023-003
    Significant Deficiency
  • 964083 2023-004
    Significant Deficiency Repeat
  • 964084 2023-007
    -
  • 964085 2023-003
    Significant Deficiency
  • 964086 2023-004
    Significant Deficiency Repeat
  • 964087 2023-007
    -
  • 964088 2023-003
    Significant Deficiency
  • 964089 2023-004
    Significant Deficiency Repeat
  • 964090 2023-003
    Significant Deficiency
  • 964091 2023-004
    Significant Deficiency Repeat
  • 964092 2023-003
    Significant Deficiency
  • 964093 2023-004
    Significant Deficiency Repeat
  • 964094 2023-003
    Significant Deficiency
  • 964095 2023-004
    Significant Deficiency Repeat
  • 964096 2023-003
    Significant Deficiency
  • 964097 2023-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.608 Food for Education $1.08M
19.019 International Programs to Combat Human Trafficking $298,150
19.517 Overseas Refugee Assistance Programs for Africa $210,755
17.401 International Labor Programs $183,493
98.001 Usaid Foreign Assistance for Programs Overseas $319