2023-003 Internal Control over Compliance and Compliance with Procurement, Suspension and Debarment
Information on the Federal Program:
United States Agency for International Development
Assistance Listing Number: 98.001
Assistance Listing Name: USAID Foreign Assistance for Programs Overseas
Pass-through Award(s):
Pass-through Entity Pass-through Award Number
Award Period
Freedom House AID-OAA-A-16-00044 October 1, 2016 through June 30, 2023
Freedom House
720-68520-LA-00002
September 15, 2020 through
September 14, 2024
Freedom House 720-482-21-LA-00001 October 11 2021 through December 31, 2023
Freedom House 7200-AA-21-LA-00004 November 1, 2022 through January 15, 2024
Management Systems
International, Inc. 6122.01.18.005
July 24, 2018 through May 23, 2023
National Democratic Institute 21-20547-SUD.0-1900 October 15, 2020 through August 31, 2024
United States Department of Homeland Security
Assistance Listing Number: 97.132
Assistance Listing Name: Financial Assistance for Targeted Violence and Terrorism Prevention
Award Number:
Direct Award Number Award Period
EMW-2021-GR-00047-S01 October 1, 2021 through December 31, 2023
Criteria or Specific Requirement:
In accordance with §200.318(a), General Procurement Standards, the non-federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations, provided that the procurements conform to applicable federal law and the standards identified in General Procurement Standards. Additionally, §200.318(i) states that the non-federal entity must maintain records sufficient to detail the history of the procurement. These records are required to include but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. All procurement transactions must be conducted in a manner providing full and open competition consistent in accordance with §200.319 and must be performed using the appropriate procurement method as outlined in §200.320.
In accordance with §200.320(c), Noncompetitive Procurement, there are specific circumstances in which noncompetitive procurement can be used. Noncompetitive procurement can only be awarded if one or more of the following circumstances apply: (1) The acquisition of property or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold (see paragraph (a)(1) of this section); (2) The item is available only from a single source; (3) The public exigency or emergency for the requirement will not permit a delay resulting from publicizing a competitive solicitation; (4) The Federal awarding agency or pass-through entity expressly authorizes a noncompetitive procurement in response to a written request from the non-Federal entity; or (5) After solicitation of a number of sources, competition is determined inadequate.
In accordance with §200.213 and §180.300, Suspension and Debarment, non-federal entities cannot enter into awards, subawards, or contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Non-federal entities must either check for exclusions in the System for Award Management (SAM); collect a certification from the entity, or add a clause or condition to the covered transaction with the entity prior to entering into a covered transaction with a non-federal entity. In addition, in accordance with §180.415(b), non-federal entities cannot renew or extend covered transactions (other than no-cost time extension) with any excluded person, or under which an excluded person is a principal, unless the non-federal entity obtains an exception under §180.135.
Condition: During our testing of procurement compliance requirement, we tested a total of twenty-five procurement transactions for assistance listing number 98.001. We identified the following matters:
• For five procurement transactions, the Organization did not maintain any support they verified the vendor was not suspended or debarred prior to entering into the covered transaction.
• For two procurements tested, the Organization procured goods from a vendor without full and open competition.
During our testing of subrecipient monitoring compliance requirement, we tested a total of two subrecipient agreements for assistance listing number 97.132. In both instances the Organization performed the suspension and debarment check after entering into the covered transaction. The Organization did however perform the check prior to making any payments to either subrecipient.
Cause: In the instances identified, the Organization was unable to provide complete documentation of the history of the procurement, and for ensuring proper suspension and debarment validations were performed.
Effect: Failure to perform procurement procedures in accordance with a written policy that complies with Procurement Procedures as outlined in the Uniform Administrative Requirements could result in the procurement being disallowed. Failure to timely verify that a vendor is not suspended or debarred could result in transactions involving unreasonable costs or result in unintentionally entering into a contract with an entity that is barred from performing work for the U.S. government.
Questioned Costs: Total known questioned costs are $44,539.
Context: This is a condition based on testing of the Organization’s compliance with specified requirements. The prevalence of these findings is detailed in the condition section above. The samples were selected using a non-statistical method.
Repeat Finding: This finding is a repeat finding from prior year. This was reported as finding 2022-004 in the 2022 schedule of findings and questioned costs.
Recommendation: We recommend management reinforce the procurement policy that complies with the Procurement Procedures as outlined in the Uniform Administrative Requirements. We recommend that all staff are provided additional training on this policy to help ensure compliance going forward.
Views of Responsible Officials: The Organization’s management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.