Finding Text
Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Control over Compliance (Procurement, Suspension and Debarment). Program. U.S. Department of Education; Education Innovation and Research, Supporting Preschool and Kindergarten Students; ALN 84.411C; Award Number U411C160089. Criteria. A recipient of federal awards is required to determine that vendors being paid with federal funds are not suspended or debarred from doing business with the federal government. Such procedures are required whenever the amount disbursed to a single vendor in a given fiscal year is expected to be at least $25,000. Condition. There is no procedure in place to determine whether vendors are suspended or debarred. Cause. This condition appears to have been caused by a lack of knowledge of applicable federal compliance requirements. Effect. As a result of this condition, the Organization was exposed to an increased risk that disbursements of federal awards could be made to vendors suspended or debarred by the federal government. Questioned Costs. No costs are required to be questioned as a result of this finding, inasmuch as none of the vendors involved were actually suspended or debarred. Recommendation. We recommend that all employees administering federal grants and having primary responsibility for compliance with grant requirements be provided the necessary training and supervision to be able to identify and comply with such requirements. View of Responsible Officials. A policy around federal programs has been created and will be implemented for all future federal grants, which includes reviewing vendors for suspension and debarment.