Finding Text
CFDA #10.760 USDA Water and Waste Disposal Procurement, Suspension & Debarment Finding 2022-003 ? Noncompliance with Federal Code of Regulations 2 CFR 200.214 Criteria: 2 CFR 200.214 requires the non-federal entity to maintain written documentation verifying that all vendors working on federal contracts have not been suspended or debarred. Condition: The procurement package for one of two vendors selected for testing did not have documentation showing where management verified the vendor?s eligibility to work on federal contracts. Cause: Management was unaware of the specific requirements noted in 2 CFR 200.214. Effect: A vendor could have been utilized on the federally-funded project when they were not allowed to work on a federal contract. Questioned Costs: There were no questioned costs. Context: The auditor verified through sam.gov that the vendor had not been suspended or debarred. Repeat Finding: This is not a repeat finding, as this is a new federal award for 2022. Recommendation: We recommend management amend the procurement policy to include specific procedures to ensure vendors/contractors on Federal projects have not been suspended or debarred. This verification should be performed on every contractor/vendor, and said verification should be documented in writing as part of the contract procurement package. Views of Responsible Officials and Planned Corrective Action: Management agrees with the above finding and will amend the Procurement Policy to include a vetting process to avoid a selection of a contractor /vendor that has been suspended or debarred from working on Federal Contracts.