Finding 565965 (2025-002)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2025-06-24

AI Summary

  • Core Issue: The Organization is not verifying vendor eligibility for Federal assistance programs annually, violating 2 CFR Section 200.214.
  • Impacted Requirements: Non-compliance with procurement procedures may lead to selecting ineligible vendors or overpaying for services.
  • Recommended Follow-Up: Implement a review process for vendor eligibility in line with 2 CFR Section 200.214 before fund disbursement, to be completed by July 31, 2025.

Finding Text

Congressional Grants – Suspension and Debarment: Information on Federal Program: U.S. Department of Housing and Urban Development Congressional Grant (Federal Assistance Listing Number 14.251). Criteria: 2 CFR Section 200.214 stipulates that no awards, subawards, or contracts be awarded to parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Statement of Condition: During our discussions with management, we noted that the Organization is not verifying the eligibility of vendors to participate in Federal assistance programs on an annual basis. Statement of Cause: The Organization did not review compliance requirements related to procurement outlined in 2 CFR Section 200.214. Statement of Effect: The Organization is not in compliance with 2 CFR Section 200.214. The Organization is not performing required procedures, as a result, vendors that are not eligible for participation in Federal assistance programs or activities could be selected or the Organization could be overpaying for goods and services. Questioned Costs: None. Perspective Information: As part of the required procurement testing, a review of the vendor charged to the Congressional grant and therefore represented purchases with federal dollars was performed. The vendor was not suspended or debarred from participation in Federal assistance programs or activities. Recommendation: We recommend that the Organization review the requirements of 2 CFR Section 200.214 and ensure that their procurement procedures are being followed and that a review of the eligibility of potential vendors to participate in Federal assistance programs or activities is performed prior to disbursing funds to the vendor. Views of responsible officials and planned corrective actions: The Capital District YMCA reviewed the vendor used for our project when the auditors brought this to our attention and we did not find any suspension or disbarment information. We will incorporate this vendor review into our process for all programs or activities related to Federal contracts. This will be done in conjunction with the procurement policy and be in place by July 31, 2025.

Corrective Action Plan

The Capital District YMCA reviewed the vendor used for our project when the auditors brought this to our attention and we did not find any suspension or disbarment information. We will incorporate this vendor review into our process for all programs or activities related to Federal contracts. This will be done in conjunction with the procurement policy and be in place by July 31, 2025. The SVP/CFO Mary Maziejka will be responsible for development and implementation of the policy.

Categories

Procurement, Suspension & Debarment Eligibility

Other Findings in this Audit

  • 565964 2025-001
    Significant Deficiency
  • 1142406 2025-001
    Significant Deficiency
  • 1142407 2025-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.251 Economic Development Initiative, Community Project Funding, and Miscellaneous Grants $1.00M
93.575 Child Care and Development Block Grant $115,253
10.558 Child and Adult Care Food Program $66,506
21.027 Coronavirus State and Local Fiscal Recovery Funds $63,480