Finding Text
2023-002 Finding – Federal Award
Type: Federal Award – Material Weakness and Material Noncompliance – Procurement, Suspension and Debarment
Identification of Federal Program:
21.027 – Coronavirus State and Local Fiscal Recovery Funds
10.182 – Local Food Purchase Agreements with State, Tribes, and Local Governments
Criteria/Requirement:
Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. According to 2 CFR section 180, when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity is not suspended or debarred or otherwise excluded from participating in the transaction.
Condition/Context:
OFB passed through $4,027,781 in funding to subrecipients under Assistance Listing 21.027 and
$1,825,785 in funding to subrecipients under Assistance Listing 10.182. During our audit, we
noted that Oregon Food Bank, Inc did not verify subrecipients for suspension or debarment.
Cause:
The organization’s policy does not include language regarding verifying if a vendor or subrecipient is suspended or debarred.
Effect:
A suspended or debarred vendor subrecipient may receive federal funding.
Questioned Costs:
None
Recommendation:
Revise policies to include language for verifying if vendor or subrecipient is suspended or debarred before entering contracted transactions. Management’s Response:
Management concurs with the finding and has developed a corrective action plan.