Finding Text
FINDING 2022-001 SIGNIFICANT DEFICENCY and MATERIAL NONCOMPLIANCE Suspension and Debarment Condition: District did not verify that an entity with which it planned to enter into a covered transaction was not debarred, suspended or otherwise excluded as required by board policy and federal guidelines. (2 CFR sections 200.212 and 200.318(h); 2 CFR section 180.300; 48 CFR section 52.209-6) Criteria: Recommended Procedures Cause: During the course of the audit, we determined there exists a high reliance upon key positions of management to operate the procurement process without sufficient third-party review or involvement. Effect: The District entered into a covered transaction with Central Consolidated, Inc. without verifying they were not debarred, suspended or otherwise excluded. Recommendations: The Board of Directors, the Director and key positions of management should re-assess the current board policy and potentially add encompassing compensating controls. The Board should then periodically check that all procedures agreed upon are operational and effective, and adjust procedures as needed. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding. See separate document for planned corrective actions.