Finding 5677 (2023-003)

2023-003: Written Policy for Debarred, Suspended Vendors Federal Assistance listing Number: 84.371 Compliance Area: Procurement & Suspension & Debarment (I) Type of Finding: Significant Deficiency Questioned Costs: None Criteria: The District should have written standards of conduct in place to verify any entity (vendor) with which the District spends Federal expenditures or conducts business transactions be not debarred, suspended, or otherwise excluded per 2 CFR 200.318(h) and 2 CFR 180. The written standard should address conduct covering conflicts of interest governing the performance of its employees and contractors engaged in the selection, award, and administration of contracts (Uniform Guidance Section 200.318(c) and 45 CFR sections 52.203-13 and 52.203-16). Condition: During our audit, we found that the District did not have written controls in place to ensure that vendors were not suspended, debarred, or included on the list of vendors prior to entering into a contract. Identification as a repeat finding: No. Recommendation: We recommend that the District put written internal controls in place such as using a checklist to ensure Federal funds that pay contractors are not suspended or debarred and adopts a formal policy on procurment for debarment.