Finding Text
Type of Finding
Significant deficiency in internal control over financial reporting.
Criteria or Specific Requirements
2 CFR Section 200.214 requires non-federal entities to follow suspension and debarment regulations outlined in 2 CFR part 180. When a nonfederal entity enters into a covered transaction with an entity at a lower tier, the nonfederal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction.
Condition
The District could not provide proof of verification of the suspension and debarment status of vendors before entering into services.
Questioned Costs
None.
Context
The District did not review 1 of 2 vendors tested in our sample to ensure they were not suspended or debarred when initiating covered transactions in the current year.
Cause
The District did not follow their Federal Funds Suspension and Debarment Policy related to appropriate methods of verifying vendors are not suspended or debarred. Effect
The District could contract with a vendor that has been suspended or debarred from receiving federal funds.
Repeat Finding
No
Recommendation
We recommend the District include contract language which ensures vendor are not suspended or debarred as well as utilize sam.gov to review vendors at the beginning of the year or before a transaction is incurred in accordance with Uniform Guidance requirements.
View of Reasonable Officials
There is no disagreement with this finding and management has developed a plan to correct the finding.