Finding 526303 (2024-001)

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Requirement
M
Questioned Costs
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Year
2024
Accepted
2025-03-07
Audit: 345217

AI Summary

  • Core Issue: A vendor received over $3 million in federal funds without proper documentation verifying they are not suspended or debarred.
  • Impacted Requirements: Non-federal entities must confirm vendor eligibility for contracts over $25,000 through the System for Award Management (SAM).
  • Recommended Follow-up: Management should ensure SAM checks are documented or include specific contract language to prevent payments to ineligible vendors.

Finding Text

Criteria: Suspension and Debarment. Non-federal entities are prohibited from contracting with parties who are suspended or debarred from federal awards. For certain covered transactions over $25,000, the program must verify that an entity is not suspended or debarred through the System for Award Management (SAM), alternative certification or contract language. Condition: One vendor paid $2,256,379 in program 14.251 and $990,000 in program 21.027 for a total of $3,246,379 was verified using the System for Award Management (SAM) but support was not retained by management. Questioned Costs: There are no questioned costs as there may be no debarred vendors. Context: Vendors on this project were paid enough federal funds to require the program to verify that the provider is not suspended or debarred. Effect: Amounts may be paid to parties not eligible to receive federal funding. Cause: This purchase was for contract services and Habitat thought that the request for proposal and bid documentation included this language and that the SAM system was checked. Recommendation: We recommend management check the System for Award Management (SAM) or include contract language to ensure federal funds are not paid to suspended or debarred parties. Management’s Response: Agree Contact Person: Cheri Witt-Brown, CEO

Corrective Action Plan

Corrective Action Planned: Habitat will continue to verify that vendors used for purchases of goods or services have not been suspended or debarred by checking the System for Award Management (SAM) and make sure to include this information in the contract file. Habitat did check the System for Award Management (SAM) in February 2025 noting that the vendor at that time had not been suspended or debarred.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.251 Economic Development Initiative, Community Project Funding, and Miscellaneous Grants $2.26M
21.027 Coronavirus State and Local Fiscal Recovery Funds $990,000