Finding 515975 (2023-004)

Significant Deficiency

Requirement

Questioned Costs

Year

2023

Accepted

2024-12-19

Audit: 333783

Organization: The National Judicial College (NV)

Auditor: Marcum LLP

AI Summary

Core Issue: The College did not check if a contractor was suspended or debarred before awarding a federal contract.
Impacted Requirements: This violates federal regulations requiring verification through the System for Award Management (SAM).
Recommended Follow-Up: Establish a strict protocol for verifying contractor status, including documentation of SAM searches and compliance evidence.

Finding Text

Agency U.S. Department of Transportation, Federal Motor Carrier Safety Administration ALN 20.232 Commercial Driver’s License Program Implementation Federal Award Identification Number 69A3601840118CDL0NV 69A3601940354CDL0NV 69A3602040472CDL0NV 69A3602140719CDL0NV 69A3602240864CDL0NV Criteria According to Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), section 200.213, non-federal entities are prohibited from contracting with or making subawards to parties that are suspended or debarred. The non-federal entity must verify that the contractor or subrecipient is not suspended or debarred through the System for Award Management (SAM), which includes reviewing the Excluded Parties List System (EPLS), or by collecting a certification from the entity. Condition and Context The College failed to perform the required search for suspension and debarment in SAM for one of the two contractors tested prior to awarding a contract under the federal program. The search should have been performed to ensure that the contractor was not suspended or debarred. Cause The one vendor noted was a long standing contractor for multiple years with the College and the College made the determination that this requirement was not applicable when these services were being contracted to be renewed. Repeat Finding No Recommendation We recommend that the College implement and adhere to a strict protocol for verifying suspension and debarment status prior to awarding any contracts or subawards under federal programs. This protocol should include performing searches in SAM, documenting the results of the searches, and maintaining evidence of compliance. Views of Responsible Officials and Planned Corrective Action: See attached corrective action plan Questioned Costs None

Corrective Action Plan

Personnel changes, including the introduction and the departure of a new Director of Grants, led to a vulnerability in the debarment step of the processes for contracting with consultants under federal grants in isolated circumstances. In this particular instance, a long-term consultant entered into a new contract with the College while an existing contract for related activities was outstanding. The College will formalize a policy requiring that all new contracts under federal grants, even for previously established contractors, be reviewed and processed according to the updated procedures. Patrick Grimes is the individual responsible for oversight of this corrective action plan.

Other Findings in this Audit

515974 2023-003

Significant Deficiency
515976 2023-005

Significant Deficiency
1092416 2023-003

Significant Deficiency
1092417 2023-004

Significant Deficiency
1092418 2023-005

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
20.232	Commercial Driver's License Program Implementation Grant	$1.30M
20.614	National Highway Traffic Safety Administration (nhtsa) Discretionary Safety Grants and Cooperative Agreements	$266,642
99.U02	Education Support Program:njc Courses	$144,498
16.746	Capital Case Litigation Initiative	$38,953
99.U01	Environmental Law	$17,824
16.588	Violence Against Women Formula Grants	$15,818
93.243	Substance Abuse and Mental Health Services Projects of Regional and National Significance	$8,997
20.600	State and Community Highway Safety	$5,541
16.608	Tribal Justice Systems	$3,148