Finding Text
2023-005 – Suspension and Debarment
Federal agency: U.S. Department of Health and Human Services
Federal program title: Health Centers Cluster
Assistance Listing Number: 93.224/93.527
Pass-Through Agency: n/a
Pass-Through Number(s): n/a
Award Period: 9/1/23-8/31/25; 4/1/21-3/31/23; 6/1/19-5/31/23; 6/1/23-5/31/26; 12/1/22-5/31/23
Type of Finding: Material Noncompliance and Material Weakness in Internal Control over Compliance
Criteria or Specific
Requirement: § 200.214 Suspension and debarment. Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities.
Condition: The Organization could not provide documentation that vendor was verified as not being suspended or debarred prior to entering into the transaction.
Questioned Costs: $48,472.
Context: One of one vendor selected for testing suspension and debarment did not have documentation showing that suspension and debarment had been checked prior to entering into a contract.
Cause: Management turnover.
Effect: The Organization could enter into transactions using federal dollars with vendors that are suspended or debarred.
Repeat Finding: Yes, 2022-005.
Recommendation: We recommend that the Organization verify that vendors are not suspended or debarred prior to signing contracts or create an approved vendor list.
Views of Responsible
Officials: There is no disagreement with the audit finding.