Finding Text
FINDING 2022-002 ? NON-COMPLIANCE AND LIMITED CONTROLS OVER SUSPENSION AND DEBARMENT Criteria ? In accordance with 2 CFR 200.213 and 2 CFR part 180 non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred, or otherwise excluded. ?Covered transactions? include contracts for goods and services awarded under a non-procurement transaction that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. The requirement is for non-federal entities to check for suspended and debarred entities and persons, or obtain certifications before entering covered transactions. In addition, 2 CFR 200.303 requires that ?The non-Federal entity must: (a)?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.? Condition ? The Center has adopted a federal suspension and debarment policy that requires contractors with awards that exceed the Center?s small purchase threshold to provide certifications regarding their exclusion status and that of their principal officers. During our testing we were not provided copies of obtained certifications, or proof that the Center has checked on SAM.gov whether the covered contractors have been suspended, or debarred prior to entering into the covered transactions. Questioned Costs ? None, as management subsequently searched on SAM.gov and demonstrated that none of the tested contractors in covered transactions had been suspended or debarred. Effect ? The Center did not perform proper suspension and debarment procedures regarding certain vendors of covered transaction prior to obtaining their services. This could have resulted in disallowed costs by the federal grantor. Cause ? The Center has not implemented their written policy, procedures or controls to ensure compliance with the federal suspension and debarment requirements. Recommendation ? We recommend that the Center consider changing its policy to allow for checking for suspended or debarred persons or entities on SAM.gov, in addition to allowing a contractor certification as a substitute, and implement its policy by establishing procedures and internal controls to ensure that the Uniform Guidance suspension and debarment requirements are met prior to entering into each covered transaction. Views of Responsible Officials ? We agree with the auditors? finding and the accompanying recommendation that the Center implements its policy with procedures and internal controls to ensure that the Uniform Guidance suspension and debarment requirements are met.