Finding Text
2022 ? 002 ? Suspension and Debarment Federal Agency: Department of Transportation Federal Program Name: Highway Planning & Construction Cluster Assistance Listing Number: 20.205 Federal Award Identification Number and Year: 693JJ22130000 - 9/30/2019-06/30/2022; 693JJ21930000 - 02/12/2019-12/30/2023; 693JJ21930000 - 09/30/2019-12/31/2022; 693JJ22030000 - 02/24/2020-12/31/2023; 693JJ22130000 - 02/23/2021-06/30/2024; 69JJ22130000- 04/01/2021- 09/30/2023; 693JJ22130000 - 02/15/2021-02/28/2025; 693JJ22130000 - 09/24/2020-12/31/2022; 693JJ22230000 - 11/18/2021-07/31/2024; 693JJ22230000 - 10/10/2021-12/31/2024 Pass-Through Agency: New Mexico Department of Transportation Pass-Through Number(s) and Award Periods: CN A302130 - 9/30/2019-06/30/2022; CN A301321 -02/12/2019-12/30/2023; CN A301141 - 09/30/2019-12/31/2022; CN A301042 - 02/24/2020-12/31/2023; CN A300431 - 02/23/2021-06/30/2024; CN A300202 - 04/01/2021-09/30/2023; CNA300201 - 02/15/2021-02/28/2025 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: According to ?200.303 Internal controls of 2 CFR Part 200, the non- Federal must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR Part 180.300 outlines the requirements to verify that covered individuals are not excluded or disqualified. Condition: During our testwork over Suspension and Debarment we noted that 4 of the 5 tested vendors did not have documentation that a check was performed prior to entering into covered transaction. Questioned costs: None Context: City of Rio Rancho entered into ten covered transactions that required applicable checks for suspension and debarment. Four of the five tested vendors were solicited under RFP. Per review of the contract file and through discussion with Purchasing Manager, the check for suspension and debarment is part of a checklist, but documentation of this was not maintained or able to be provided. None of the tested vendors were suspended or debarred currently or at the time of procurement. For this reason, there are no questioned costs. Cause: Management Oversight Effect: Without appropriate controls in place the organization may entered into an agreement with a covered person or entity that is not eligible. Recommendation: CLA recommends management implement a process to ensure that checks are performed and documented to conform with 180.300 of the CFR. Views of responsible officials and planned corrective actions: Management agrees with the finding. An additional form for the vendor to certify that they have not been debarred or suspended will be included in the formal RFP document as a requirement. In addition, an internal checklist will be utilized by purchasing staff during analysis of each proposal received under an RFP to document that staff has checked for debarment or suspension and the vendor is in good standing ensuring compliance with federal requirements.