Finding 561299 (2024-002)

Federal Agency: U.S. Department of Energy Federal Program: EERE Information Dissemination, Outreach, Training and Technical Analysis/ Assistance Assistance Listing Numbers: 81.117 Federal Award Identification Number and Year: DE-EE0010933 – 2023 Award Period: January 1, 2024 – December 31, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Compliance - Other Matter Criteria or specific requirement: Nonfederal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet other criteria as specified in 2 CFR section 180.220. All nonprocurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. Condition: SAM.gov verification was performed several months after contract was executed instead of prior to contract execution, or inclusion of contract clause. Questioned Costs: None Context: We tested five subrecipients and noted the SAM.gov verification was done after executing the contract, noting the subrecipients were neither suspended nor debarred. Cause: Management was not aware of the requirement to perform the SAM.gov verification or include a clause in the contract to validate the subrecipient is neither suspended nor debarred. Effect: In cases where this verification is not completed there is a risk of payment to a vendor who is suspended or debarred by the federal government. Repeat Finding: This was not a repeat finding. Recommendation: We recommend documenting the vendor was checked on the SAM.gov website prior to payment, along with a documented review of this documentation prior to executing the agreement. These procedures should be included in a written policy that complies with the federal regulations around contracting or making subawards under covered transactions. Alternatively, in lieu of the SAM.gov verification, the Organization could include appropriate language in the contract that provides representations the subrecipient is neither suspended nor debarred. Views of responsible officials and planned corrective actions: Management is in agreement with the finding.