Finding 569870 (2024-001)

-
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-07-01

AI Summary

  • Core Issue: The Commission failed to verify that a contractor was not on the federal Excluded Parties List before signing a contract.
  • Impacted Requirements: Compliance rules mandate this verification for all contracts, including supply contracts funded by federal grants.
  • Recommended Follow-Up: Enhance internal controls for procurement to ensure compliance with federal requirements for all types of contracts.

Finding Text

Identification of the Federal Program - Assistance Listing Number 21.015 - Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States (RESTORE), United States Department of Treasury. Pass-Through Entity: Mississippi Department of Environmental Quality. Award Number: MDEQ -1900095. Criteria - Compliance requirements state that recipients must verify that a proposed contractor does not appear on the federal government's Excluded Parties List prior to executing an agreement or contract with that entity. Condition - Debarment and suspension status was not verfied prior to contracting with a vendor, in accordance with compliance requirements. Cause - The contract engineer was not aware that requirement applied to supply contracts. Effect - Potential material noncompliance with federal award compliance requirements. Questioned Costs - There are no questioned costs associated with finding. Context - The Commission has not had significant federal awards in recent years and has not had supply only contracts subject to federal compliance requirements. Historically, the Commission has had adequate internal controls over compliance of federal awards and has verfied suspension and debarment status of all other contracts. Subsequent inquiry determined the vendor was not suspended or debarred. Repeat Finding - This is not a repeat finding. Recommendation - The Commission should expand internal controls they have in place for procurement to include supply contracts funded with federal grants. View of Responsible Officials and Planned Corrective Actions - The Commission concurs with the finding and has provided a response in the Corrective Action Plan.

Corrective Action Plan

The Commission strives to comply with governing rules and regulations. The Commission continues their efforts to improve processes and will utilize their internal controls appropriately in the future. The Commission has a comprehensive procurement checklist to ensure compliance requirements are met prior to contracting with a vendor.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.015 Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States $1.99M