Finding Text
Federal Program
Coronavirus Capital Projects Fund (AL 21.029)
Procurement Suspended and Debarred Parties
Significant Deficiency
Criteria
Non-Federal entities are prohibited from contracting with or making subawards under covered
transactions to parties that are suspended or debarred. “Covered transactions” include contracts for
goods and services awarded under a non-procurement transaction (e.g. grant or cooperative agreement)
that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR part
180.220.
Condition
East Central Energy and Subsidiaries is not currently reviewing parties they are contracting with to ensure
they are not suspended or debarred. It is noted, however, that no contractors hired by East Central
Energy and Subsidiaries were listed on the suspended or debarred parties listing.
Cause
East Central Energy and Subsidiaries does not have written policies or procedures addressing
contracting with suspended or debarred parties
Questioned Costs
None
Context
East Central Energy and Subsidiaries contracted with two contractors during the year. We tested both of
these contractors and found both were not included on the suspended and debarred parties listing.
Effect
Non-compliance with Suspension & Debarment compliance requirements. This could result in East
Central Energy and Subsidiaries contracting with a suspended or debarred party.
Repeat Finding
This is not a repeat finding.
Recommendation
Recommend for East Central Energy and Subsidiaries to create and implement a policy that to ensure all
contracted parties are not included on the Federal suspended or debarred party listing, in accordance
with 2 CFR part 180.220.
Views of Responsible Officials
East Central Energy and Subsidiaries agrees with the recommendation.