Finding 599340 (2022-001)

Significant Deficiency Repeat Finding
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-02-24

AI Summary

  • Core Issue: The Home failed to verify that vendors were not debarred or suspended from federal programs before procurement.
  • Impacted Requirements: Non-compliance with 2 CFR Sections 200.212, 200.318(h), and 180.300, as well as 48 CFR Section 52.209-6.
  • Recommended Follow-Up: Implement a semi-annual review process to ensure vendor eligibility for federal awards and update procurement policies accordingly.

Finding Text

Compliance with Uniform Guidance ? Procurement Suspension and Debarment Information on Federal Program: Unaccompanied Alien Children (Assistance Listing No. 93.676) provided by the Department of Health and Human Services. Criteria: 2 CFR Sections 200.212, 200.318(h), and 180.300 and 48 CFR Section 52.209-6 state that a non-Federal entity must review that an entity with which it plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded from participation in federal award programs. Condition: During our testing for procurement compliance, it was determined that the Home did not verify that vendors charged to the major program are not debarred, suspended, or otherwise excluded from participation in federal award programs. Questioned Cost: None Cause: The Home was not aware of the requirement to review an entity?s status. Effect: The Home is not in compliance with 2 CFR Sections 200.212, 200.318(h), and 180.300 and 48 CFR Section 52.209-6. As a result, the Home could enter into covered transactions with entities that are debarred, suspended, or otherwise excluded from participation in federal award programs. Perspective Information: Vendors in excess of the $25,000 threshold were reviewed to determine if they are debarred, suspended, or otherwise excluded from participation in federal award programs. None were noted to be ineligible for participation. Repeat Finding: Yes Recommendation: We recommend the Home review and document the verification that vendors are not debarred, suspended, or otherwise excluded from participation in federal award programs. Views of the Responsible Officials and Planned Corrective Actions: The Home will revise its procurement policy to include a semi-annual review of the vendors eligible to participate in the federal award programs.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 22898 2022-001
    Significant Deficiency Repeat
  • 22899 2022-002
    Significant Deficiency Repeat
  • 599341 2022-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.676 Unaccompanied Alien Children Program $9.91M
10.555 National School Lunch Program $90,960
10.553 School Breakfast Program $53,541