Finding 623050 (2022-001)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-05-07
Audit: 41676
Organization: Town of Foster, Rhode Island (RI)

AI Summary

  • Core Issue: The Town of Foster lacks procedures to verify if entities involved in covered transactions are suspended or debarred.
  • Impacted Requirements: This affects compliance with federal regulations for contracts over $25,000 funded by the Coronavirus State and Local Fiscal Recovery Funds.
  • Recommended Follow-Up: Implement verification procedures to ensure compliance with suspension and debarment requirements before entering into contracts.

Finding Text

Agency: U.S. Department of the Treasury Program: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number: 21.027 SUSPENSION AND DEBARMENT Criteria - When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR Section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. ?Covered transactions? include those procurement contracts for goods and services awarded under non-procurement transaction (e.g. grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR Section 180.220. This requirement applies to contracts entered into to procure goods and services with Coronavirus State and Local Fiscal Recovery Funds. Condition - The Town of Foster does not have a specific procedure in place for verifying that an entity with which it plans to enter into a covered transaction is not suspended, debarred or otherwise excluded. Cause - The Town has not established suspension and debarment policies and procedures for federal awards. Effect ? Contracts for goods and service that were ?covered transactions? were entered into prior to verifying that an entity was not suspended, debarred or otherwise excluded. Questioned Costs ? None Recommendation- We recommend that the Town implement verfication procedures to ensure that an entity with which it plans to enter into a covered transaction is not suspended, debarred or otherwise excluded.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 46608 2022-001
    Material Weakness
  • 46609 2022-002
    Significant Deficiency
  • 623051 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $993,155
84.425 Education Stabilization Fund $179,419
84.027 Special Education_grants to States $90,694
84.010 Title I Grants to Local Educational Agencies $55,867
10.553 School Breakfast Program $44,766
84.424 Student Support and Academic Enrichment Program $23,463
84.358 Rural Education $17,461
84.367 Improving Teacher Quality State Grants $13,843
45.310 Grants to States $10,486
10.555 National School Lunch Program $5,244
84.173 Special Education_preschool Grants $1,742
20.600 State and Community Highway Safety $1,421
93.069 Public Health Emergency Preparedness $1,047