Finding 395904 (2023-002)

Department of Treasury Federal Financial Assistance Listing 21.033, Award 22ERP060843 Community Development Financial Institutions Equitable Recovery Program (CDFI ERP) Suspension & Debarment Significant Deficiency in Internal Control over Compliance Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: In our testing of procurement, suspension, and debarment, it was identified that there was no observable documentation to directly indicate that a search for suspension and debarment was performed on vendors prior to entering into contracts. Cause: Meda has designed internal controls over these areas; however, the controls were not performed timely. Effect: Failure to document the search for suspension and debarment before entering the contact could result in possibly noncompliance. Questioned Costs: None reported. Context: Two vendors, accounting for $149,320 of expenses were selected for testing out of a total of two vendors. Repeat Finding from Prior Years: No Recommendation: We recommend that management maintain adequate supporting documentation and records to document history and methods of the procedures performed to ensure vendors are not suspended or debarred. Views of Responsible Officials: Management agrees with the finding.