Finding 537612 (2024-001)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-03-27

AI Summary

  • Core Issue: Lack of documentation to confirm that vendors are not disbarred or suspended.
  • Impacted Requirements: Compliance with 2 CFR Part 200.14, which mandates checks on vendor eligibility for federal contracts.
  • Recommended Follow-Up: Implement a process to regularly verify vendor status against the federal database and update internal controls accordingly.

Finding Text

Condition: There was no documenation to verify that vendors that were used were not disbarred or suspended. Criteria: Recipients and subrecipients of federal funds are restricted from making contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participaing in Federal awards, in accordance with 2 CFR Part 200.14. Internal controls should be in place that provide reasonable assurance that vendors that are being used for expenditures charged to federal programs are not debarred or suspended and are appropriately documented. Cause: There was no lookup of vendors on the appropriate federal website for vendors used. Effect: Since vendors were not appropriately reviewed and searched, it is possible that a vendor could be disbarred or suspended. This could result in noncompliance with the Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions: The Organization will review its procedures and make appropriate changes. The Organization accepts the recommendation.

Corrective Action Plan

The Organization will review its procurement procedures to ensure they include performing and documenting the appropriate searches. The Organization accepts the recommendations.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1114054 2024-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.002 Adult Education - Basic Grants to States $591,826
84.173 Special Education_preschool Grants $516,088