Finding 389769 (2023-001)

Finding 2023-001-Procurement, Suspension and Debarment Federal agency: U.S. Department of Health and Human Services Pass-through entity: The University of Texas of Austin Program: Birth Defects and Development Disabilities – Prevention and Surveillance Assistance listing number: 93.073 Federal award identification number and year: • NU84DD000009 2021 • NU84DD000012 2022 Criteria: 2 CFR 200.318 states non-federal entities must have and use documented procurement procedures that conform to 2 CFR 200.317 through 200.327. 2 CFR 200.214 states non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Order 12549 and 12689, 2 CFR Part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. 2 CFR 200 requires adequate documentation of compliance with 2 CFR 200.214. Condition and Context: The Foundation does not have a formal procurement policy under requirements of 2 CFR 200.317 through 200.327. The Foundation established policies and procedures over suspension and debarment, including checking all vendors against the government suspension and debarment listing. We noted as part of our testing that there was no documentation that these policies and procedures were being followed. Cause: The Foundation procurement policy did not conform to 2 CFR 200.317 through 200.327 and management did not document compliance with the above criteria regarding suspension and debarment. Effect: The Foundation procurement policy did not conform to 2 CFR 200.317 through 200.327. The Foundation’s documentation was lacking evidence of tracking vendors for suspension and debarment. Questioned costs: None Repeat Finding: No Recommendation: We recommend management develop a formal procurement policy to conform to 2 CFR 200.317 through 200.327. We recommend that the Foundation add and monitor the formal procedure and policy with designated individual(s) responsible to ensure documentation is retained, satisfying the compliance requirement detailed above. Views of responsible individuals: Management agrees with the finding and recommendation. See corrective action plan for further information.