Finding Text
Item 2022-001: Suspension and Debarment Assistance Listing Number title and number: Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing Number 21.027 Federal award grant number: 031875505 Federal agency: U.S. Department of Treasury Pass-through entity: Wisconsin Department of Agriculture, Trade and Consumer Protection Criteria: SHNLFB is required to verify contractors are not suspended or debarred for all contracts for goods and services that equal or exceed $25,000 and are funded by federal awards (2 CFR part 180.995). This verification may be accomplished by 1) searching the System for Award Management (SAM), 2) collecting a certification from the entity and 3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Procurement records should document the method used to comply with the requirements of suspension and debarment. Condition: For one of the contracts selected for suspension and debarment testing, there was no documentation provided by SHNLFB to verify the contractor was not suspended or debarred. Cause: The exception noted above was due to a breakdown in SHNLFB?s procedures to ensure that all contracts for goods and services entered into have suspension and debarment checked in accordance with SHNLFB?s procurement policy. Effect: SHNLFB did not consistently follow its procedures designed to verify vendors are not suspended or debarred prior to the awarding the contract. During the audit, we were able to verify that the vendor was not suspended or debarred. Questioned costs: None Context: The population subject to suspension and debarment requirements totaled 2 purchases. The sample size of 2 was determined using the guidance in the AICPA Audit and Accounting Guide ? Government Auditing Standards and Single Audits. We noted 1 instance in our sample size of 2 where there was no documentation provided by SHNLFB to verify the contractor was not suspended or debarred. Repeat finding: No Recommendation: SHNLFB should continue to improve its procedures to ensure that all vendors are properly verified prior to the awarding of contracts or purchase orders. It is also recommended that evidence related to the procedures performed to verify vendors are not suspended or debarred is maintained with the individual contracts and purchase orders. Views of responsible officials of the auditee: We agree with the above finding and our response is included in the corrective action plan.