Finding Text
2023-002 Suspension and Debarment Federal agency: U.S. Department of Labor Federal program title: H1-B Job Training Grants CFDA Number: 17.268
Award Period: March 1, 2020 - February 29, 2024
- Significant Deficiency in Internal Control over Compliance
- Other Matters
Criteria:
Uniform Grant Guidance requires compliance with the provisions of internal controls. 2 CFR Part 200.303 states that recipients of Federal funds are required to establish and maintain effective internal control over the Federal awards to provide reasonable assurance that the recipient of Federal funds is following Federal statutes, regulations and the terms and conditions of the Federal award. Argentum should have internal controls designed and effectively operating to ensure compliance with those provisions.
Condition:
Argentum did not properly obtain suspension and debarment certification or check the System for Award Management website before entering into a transaction for 1 of 5 covered transactions tested.
Questioned costs: None
Cause:
Adequate procedures were not in place to verify if covered transactions with Argentum related to the federal program in excess of the threshold are not suspended, debarred, or otherwise excluded from doing business.
Effect:
Noncompliance with the federal award program's suspension and debarment compliance requirements could occur and not be detected and corrected timely.
Repeat Finding: Yes
Recommendation:
Proper procedures must be implemented and documented to ensure all covered transactions with Argentum have not been suspended or debarred or otherwise excluded from doing business, prior to procuring their services. In order to verify this, program management should either obtain debarment certifications from covered contractors or check the System for Award Management website in a timely manner.
Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.