Finding Text
Suspension and Debarment
Federal Agency: U.S. Department of Health and Human Services
Federal Program Name: Health Center Infrastructure Support
Assistance Listing Number: 93.526
Federal Award Identification
Number: C8ECS44866-01-00
Award Periods: September 15, 2021 – September 14, 2024
Type of Finding: Immaterial noncompliance and significant deficiency in internal control over compliance
Criteria:
2 CFR sections 200.212 and 200.318(h); 2 CFR section 180.300; 48 CFR section 52.209-6 outlines that the non-Federal entity must verify that the agency in which it is entering into a contract is not suspended or debarred or otherwise excluded from participating in the transaction.
Condition:
The Organization did not check to see if a vendor was suspended or debarred prior to entering a contract with the vendor.
Questioned Costs:
$38,515.
Context:
The Organization purchased medical equipment from a vendor without first verifying the vendor was not suspended or debarred.
Cause:
Oversight
Effect:
Formalized procedures should be in place to ensure the Organization does not engage with a vendor that is debarred, suspended, or otherwise excluded.
Repeat Finding:
No.
Recommendation:
CLA recommends the Organization update its procurement policy to include procedures that a vendor be verified as not being debarred, suspended, or excluded.
Views of Responsible Officials:
There is no disagreement with the audit finding.