Finding 522808 (2024-001)

Assistance Listing Number #21.027 - Coronavirus State and Local Fiscal Recovery Funds. Type of Finding: Significant deficiency in internal control over major federal programs. Criteria: The Uniform GuidanCriteria: The Uniform Guidance at 2 CFR 200.214, 2 CFR Part 180, and Treasury’s implementing regulations at 31 CFR Part 19, prohibit non-federal entities from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Covered transactions include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Condition: We noted that BRAG does not have a process to check for suspension and debarment. Cause: BRAG staff are not familiar with federal suspension and debarment requirements. Effect or Potential Effect: BRAG has a significant deficiency in internal control with respect to its procurement policies and procedures, which could result in significant noncompliance or questioned costs in the future. Recommendation: BRAG management should ensure that procurement policies and procedures regarding the expenditure of federal funds are updated to address suspension and debarment and that these policies and procedures are being following by all BRAG personnel. In addition, we recommend that BRAG management provide training related to procurement policies and procedures to all BRAG personnel with the ability to enter into a contract.