Finding Text
Procurement – Suspension and Debarment
Federal agency: U.S. Department of Energy
Federal program title: Conservation and Development Program
Federal Assistance Listing Number: 81.086
Award Period: February 2, 2022 – February 29, 2024
Type of Finding: Significant Deficiency in Internal Control over Compliance
Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. Home Innovation Research Labs, Inc. should have internal controls designed to ensure compliance with those provisions.
Condition: During our testing, we noted Home Innovation Research Labs, Inc. did not have documentation to support that internal controls were performed to ensure vendors were not suspended or debarred prior to entering into the contract.
Questioned costs: None
Context: During our testing, it was noted that for 4 of 4 items tested that Home Innovation Research Labs, Inc. did not have documentation to support that it had reviewed vendors prior to entering into a contract with the vendors to ensure they were not on the suspended or debarred vendor list maintained by the General Services Administration. We verified that the selected vendors were not suspended or debarred.
Cause: Home Innovation Research Labs, Inc. was unable to locate documentation to support the performance of procedures to ensure vendors were not suspended or debarred.
Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance.
Recommendation: We recommend Home Innovation Research Labs, Inc. design controls to ensure an adequate review process is in place to review potential vendors to determine they are not suspended or debarred and to ensure documentation to support this is maintained.
Views of responsible officials: There is no disagreement with the audit finding.