Finding Text
Finding - Procurement, Suspension and Debarment, CDFI Rapid Response Program, Assistance Listing Number 21.024, 2021-2023 Award Years, U.S. Department of Treasury; Criteria or Specific Requirement Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal 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. (2 CFR sections 200.212 and 200.318(h); 2 CFR section 180.300; 48 CFR section 52.209-6) Condition Found Out of five loans selected for testing, two of the loan agreements did not include a representation that the borrower is not currently debarred, suspended, excluded or disqualified by any Federal department or agency, and no other procedures were performed by the Organization to determine if these two borrowers were debarred, suspended, excluded or disqualified. A subsequent review of the borrowers determined that neither was debarred, suspended, excluded or disqualified. Cause A loan template from an outside entity was used which did not contain a representation that borrower is not currently debarred, suspended, excluded or disqualified, and no other procedures to check for suspension or debarment were conducted. Effect Loans to recipient borrowers that are debarred, suspended, excluded or disqualified could occur. Identification as a Repeat Finding Not a repeat finding. Questioned Costs None. Recommendation The award agreement requires that the Organization shall include in all of its procurement and nonprocurement contracts and agreements, between the Organization and an individual or entity receiving any portion of the CDFI RRP Assistance, a representation that such individual or entity is not currently debarred, suspended, excluded or disqualified by any Federal department or agency. We recommend procedures be implemented to include the review of agreements to determine that this required representation is included. View of Responsible Officials and Planned Corrective Action See corrective action plan.