Finding 573557 (2023-005)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2025-08-14
Audit: 364284

AI Summary

  • Core Issue: The Organization lacks documentation for reviewing contracts with suspended or debarred entities.
  • Impacted Requirements: Internal controls do not align with Federal guidelines, risking noncompliance.
  • Recommended Follow-Up: Update procurement policy to ensure proper review and documentation of contracts with suspended or debarred parties.

Finding Text

Criteria Nonfederal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition While the Organization’s internal control policies do not allow for contracting with suspended or debarred entities, the Organization does not document its review or determination as to whether a procurement is or is not awarded to a suspended or debarred business. Cause of Condition The Organization’s internal controls are not properly designed to be in line with Federal guidelines. Repeat Finding No. Effect of Condition The Organization’s lack of internal controls allows for the Organization to enter into procurement contracts with suspended or debarred entities. Recommendation We recommend management update the Organization’s procurement policy so that the Organization reviews and documents to ensure each procurement contract is awarded to an organization which is neither suspended or debarred.

Corrective Action Plan

Management Response and Planned Corrective Action: We partially concur with the Federal Award Findings outlined above of the auditors and have implemented a corrective action plan, including updating internal control policies and procedures. Views of Responsible Officials and Corrective Actions: The management team of the Council of Western State Foresters believe in the values of transparency, justification, and documentation for transactions made in the course of conducting job related duties. As a small organization with limited staff, suggested reasonable improvements to processes are always welcome. It is in this spirit that the below corrective actions for the compliance issues noted in the findings from the 2023 audit are put forward. 2023-005 Corrective Action Plan: Management affirms that, in accordance with 2 CFR requirements, the organization has been verifying contractor eligibility through the System for Award Management (SAM) to ensure that no contractors are debarred or suspended. To further strengthen internal controls and align with best practices, the organization’s procurement policy will be updated to formally require the following: • A signed Form AD-1048 (Certification Regarding Debarment, Suspension, Ineligibility, and Voluntary Exclusion) must be obtained prior to the execution of any procurement contract. • A copy of the executed AD-1048 will be retained in both the organizational and accounting filing systems. • For entities with a UEI, a screenshot of active registration and status verification from the SAM.gov system will be maintained in the contract file. These procedures have already been implemented in practice for all new contracts executed in the current fiscal year. As an added measure of diligence and compliance, the Executive Director will review existing contracts and ensure the required documentation is filed in the appropriate contract folders for applicable vendors. Anticipated Completion: Implemented for all new contracts for 2025.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring

Other Findings in this Audit

  • 573545 2023-003
    Significant Deficiency Repeat
  • 573546 2023-003
    Significant Deficiency Repeat
  • 573547 2023-003
    Significant Deficiency Repeat
  • 573548 2023-003
    Significant Deficiency Repeat
  • 573549 2023-003
    Significant Deficiency Repeat
  • 573550 2023-003
    Significant Deficiency Repeat
  • 573551 2023-004
    Significant Deficiency
  • 573552 2023-004
    Significant Deficiency
  • 573553 2023-004
    Significant Deficiency
  • 573554 2023-004
    Significant Deficiency
  • 573555 2023-004
    Significant Deficiency
  • 573556 2023-004
    Significant Deficiency
  • 573558 2023-005
    Significant Deficiency
  • 573559 2023-005
    Significant Deficiency
  • 573560 2023-005
    Significant Deficiency
  • 573561 2023-005
    Significant Deficiency
  • 573562 2023-005
    Significant Deficiency
  • 1149987 2023-003
    Significant Deficiency Repeat
  • 1149988 2023-003
    Significant Deficiency Repeat
  • 1149989 2023-003
    Significant Deficiency Repeat
  • 1149990 2023-003
    Significant Deficiency Repeat
  • 1149991 2023-003
    Significant Deficiency Repeat
  • 1149992 2023-003
    Significant Deficiency Repeat
  • 1149993 2023-004
    Significant Deficiency
  • 1149994 2023-004
    Significant Deficiency
  • 1149995 2023-004
    Significant Deficiency
  • 1149996 2023-004
    Significant Deficiency
  • 1149997 2023-004
    Significant Deficiency
  • 1149998 2023-004
    Significant Deficiency
  • 1149999 2023-005
    Significant Deficiency
  • 1150000 2023-005
    Significant Deficiency
  • 1150001 2023-005
    Significant Deficiency
  • 1150002 2023-005
    Significant Deficiency
  • 1150003 2023-005
    Significant Deficiency
  • 1150004 2023-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.720 Community Wildlife Defense Program $127,066
10.664 Cooperative Forestry Assistance $107,763
10.698 State & Private Forestry Cooperative Fire Assistance $70,732
10.676 Forest Legacy Program $519