Finding Text
Finding Number: 2023‐004
Repeat Finding: No
Program Name/Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds
Assistance Listing Number: 21.027
Federal Agency: U.S. Department of Education
Federal Award Number: GR‐ARPA‐ASL‐ISAACSD‐161, GR‐ARPA‐SEP‐ISAACSD‐37
Pass‐Through Agency: Arizona Governor’s Office
Questioned Costs: N/A
Type of Finding: Significant Deficiency, Noncompliance
Compliance Requirement: Procurement, Suspension and Debarment
Criteria
Non‐Federal entities are prohibited from contracting with or making sub awards under covered
transactions to parties that are suspended or debarred. “Covered transactions” include those
procurement contracts for goods and services awarded under a non‐procurement transaction that
are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR §180.220.
Condition
Verification of suspension and debarment documentation was not maintained for vendors with which
the District spent at least $25,000 of federal grant monies.
Cause
The District has not implemented consistent internal controls over suspension and debarment due
to turnover in the Purchasing Department.
Effect
The District was not in compliance with the requirements set forth by the federal government.
However, it was subsequently determined that the three vendors sampled were not suspended or
debarred.
Context
For three vendors that the District utilized for the program, the District did not document its
verification of whether the vendor was suspended or debarred.
The sample was not intended to be, and was not, a statistically valid sample.
Recommendation
The District should follow purchasing policies and procedures established to ensure compliance with
federal requirements regarding suspension and debarment.Views of Responsible Officials
See Corrective Action Plan.