Finding Text
U.S. Department of Treasury
Federal Financial Assistance Listing 21.027
All Awards
State and Local Fiscal Recovery Funds
Procurement, Suspension, and Debarment
Material Weakness in Internal Control over Compliance
Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required.
Condition: In our testing of procurement, suspension, and debarment it was identified that there was no review of vendors to ensure that they are not suspended or debarred before purchases are made. In addition, there was no review of contracts entered into to ensure they included all requirements of the applicable CFR.
Cause: Lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections, and controls were not adequately designed to ensure compliance with all of these requirements.
Effect: A lack of compliance policies increases the overall risk of non-compliance.
Questioned Costs: None reported.
Context/Sampling: Overall procurement policy.
Repeat Finding from Prior Year: No.
Recommendation: We recommend that management establish a formal process to review vendors before purchases are made to ensure they are not suspended or debarred and are in compliance with the Uniform Guidance and 2 CFR sections 200.318 through 200.326.
Views of Responsible Officials: Management agrees with the finding.