Finding Text
Finding No. 2022-001
Federal Agency: U.S. Department of Commerce
ALN and Title: 11.482 Coral Reef Conservation Program
Compliance Requirement: Suspension and Debarment
Questioned Cost: $0
Criteria
In accordance with 2 CFR 200.214, non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts 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. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person.
Condition
The Trust could not provide written evidence showing that, prior to entering into a contract with a vendor, that the Trust concluded the vendor has not been debarred, suspended, or otherwise excluded from participating in the contract.
Cause:
The Trust does not have a written document proving prior to entering into a contract, that the vendor was deemed not to be debarred or suspended.
Effect or potential effect:
The Trust is in noncompliance with the applicable requirement.
Recommendation:
The Trust should revisit and implement procedures to ensure that vendors that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files.
Views of Responsible Officials:
Management agrees with the finding. See separate Corrective Action Plan.