Finding Text
Criteria: In accordance with 2 CFR 200.206(d), non-federal entities are restricted from making contracts with
parties that are debarred, suspended, or otherwise excluded from receiving federal awards or participating in
federal awards.
Condition: During our audit, we noted that the Agency did not review the debarment status of vendors prior to
entering into a contract to purchase goods or services with those vendors. During the year ended June 30,
2024, the Agency spent approximately $190,000, with two vendors without performing a check on their
debarment status. As part of the audit, we performed a debarment check and noted that neither vendor had
been debarred. Cause: The Agency’s internal control system was not designed to incorporate debarment status checks for
vendors with which the Agency is spending significant amounts of federal grant funding.
Effect: The Agency could enter into a contract with a party that has been debarred, suspended, or otherwise
excluded from receiving federal awards or participating in federal awards.
Recommendation: We recommend that the Agency adopt an internal control policy that ensures that
debarment status is checked prior to contracting with a party for the purchase of goods or services.
Management’s response: Licking Valley Community Action Program, Inc. agrees with this finding. The
executive director and finance officer will implement a debarment check with vendors with significant amounts
of federal grant funding throughout the year to ensure debarment status. This will be added into the Internal
Control Policy.