Finding 580728 (2023-003)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2023-12-14
Audit: 6595
Organization: Town of Hingham, Massachusetts (MA)

AI Summary

  • Core Issue: Lack of procedures to verify vendor suspension or debarment status before transactions.
  • Impacted Requirements: Compliance with procurement regulations under CFR Title 2 Part 200.214.
  • Recommended Follow-Up: Enhance controls to ensure vendor checks are performed prior to engaging in transactions.

Finding Text

Federal Agency: U.S. Department of Education Federal Program Name: Special Education Cluster Assistance Listing Number: 84.027, 84.173 Federal Award Identification Number: N/A Pass-Through Agency: Massachusetts Department of Elementary and Secondary Education and the Massachusetts Department of Early Education and Care Pass-Through Number(s): 240-585359-2022-0131, 240-744100-2023-0131, 252-610784-2022-0131, 262-585362-2022-0131, 262-744101-2023-0131, 264-610783-2022-0131 Award Period: July 1, 2021 – June 30, 2023 Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: The Code of Federal Regulations (CFR) Title 2 Part 200.214 states that nonfederal entities are subject to the nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. These regulations restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition and Context: Procedures were not in place to ensure three (3) of five (5) vendors selected for testing in our statistically valid sample and paid from the grant award were not suspended or debarred. Upon further testing, it was determined none of the vendors were suspended or debarred. Questioned costs: None Cause: Procedures were not in place to ensure vendors are not suspended or debarred. Effect: Federal funds could be expended to suspended or debarred vendors and subject to disallowance. Repeat Finding: No. Recommendation: We recommend the Town enhance procedures and controls to ensure verifications of suspension and debarment statuses are obtained from vendors prior to executing transactions with these vendors. Views of responsible officials: Management has updated procedures to ensure vendors are not suspended or debarred and has shared and reviewed this information with staff to ensure that the procedure is carefully followed.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 4285 2023-002
    Material Weakness
  • 4286 2023-003
    Significant Deficiency
  • 4287 2023-004
    Significant Deficiency Repeat
  • 580727 2023-002
    Material Weakness
  • 580729 2023-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.39M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $254,752
84.425 Education Stabilization Fund $154,703
93.778 Medical Assistance Program $119,987
10.555 National School Lunch Program $110,044
84.027 Special Education_grants to States $107,204
45.310 Grants to States $55,995
97.044 Assistance to Firefighters Grant $29,117
10.553 School Breakfast Program $26,198
97.039 Hazard Mitigation Grant $16,800
84.367 Improving Teacher Quality State Grants $11,140
84.010 Title I Grants to Local Educational Agencies $10,556
84.424 Student Support and Academic Enrichment Program $8,187
20.610 State Traffic Safety Information System Improvement Grants $7,602
15.616 Clean Vessel Act Program $3,894
84.173 Special Education_preschool Grants $1,292