Finding 605290 (2022-001)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-06-28

AI Summary

  • Core Issue: The Chamber did not perform required suspension and debarment checks for vendors receiving $25,000 or more in federal funds, violating 2 CFR 200.
  • Impacted Requirements: Lack of established policies and procedures for verifying vendor eligibility exposes the Chamber to legal and financial risks.
  • Recommended Follow-Up: Create a written policy detailing the verification process and assign clear roles and responsibilities for grant management compliance.

Finding Text

CRITERIA AND CONDITION: In accordance with 2 CFR 200, recipients of federal grants are required to conduct suspension and debarment verification for vendors and/or contractors that received $25,000 or more in federal funds to ensure that individuals or entities involved in the grant are not suspended, debarred, or otherwise excluded from participating in federal assistance programs. Our audit revealed that the Chamber failed to perform the necessary suspension and debarment verification for the federal grant awarded to them, in violation of 2 CFR 200 requirements. CAUSE AND EFFECT: The Chamber has not established policies or procedures to verify vendors and/or contractors receiving $25,000 or more in federal funds were not suspended or debarred from participating in federal assistance programs. Failure to comply with suspension and debarment verification requirements exposes the Chamber to significant risks, including the potential for engaging with ineligible parties, which could result in legal or financial consequences to the Chamber. QUESTIONED COST: None REPEAT FINDING FROM PRIOR YEAR: N/A RECOMMENDATION: We recommend the Chamber establish a written policy that clearly defines the procedures and requirements for suspension and debarment verification, in alignment with 2 CFR 200. This policy should outline the roles and responsibilities of personnel involved in grant management and provide guidance on conducting the verification process.

Categories

Procurement, Suspension & Debarment Eligibility

Other Findings in this Audit

  • 28848 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.54M