Finding 623583 (2022-002)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-03-28

AI Summary

  • Core Issue: The Organization did not check if contractors were suspended or debarred before signing contracts.
  • Impacted Requirements: This violates OMB Uniform Guidance ?200.180, which prohibits transactions with suspended or debarred parties.
  • Recommended Follow-Up: Update procurement policies to include contractor verification procedures and document compliance efforts.

Finding Text

Condition: The Organization did not verify that contractors used were not suspended, debarred or otherwise excluded prior to entering into a contract with them. Criteria: OMB Uniform Guidance ?200.180 provides that non-federal entities cannot enter into transactions with parties that are suspended or debarred from doing business with the federal government. Cause: The Organization's federal funding significantly increased in the year ended June 30, 2022 and is the first year that the Organization was required to undergo an audit in accordance with the Uniform Guidance. As noted in finding 2022-001, the Organization's purchasing policies did not comply with the Uniform Guidance. The Organization was not aware that contractors should be verified prior to entering into a contract under the Uniform Guidance. Effect: It is possible that the Organization enters into a contract with a contractor that has been suspended, debarred or otherwise excluded. Recommendation: The Organization's written procurement policies should include a procedure to verify that contractors are not suspended, debarred or otherwise excluded prior to entering into a contract, and the Organization should perform and document these procedures performed. Views of Responsible Officials and Planned Corrective Actions: Two of the contracts noted were originally entered into prior to the increase in the Organization's federal funding and being subject to the Uniform Guidance. No contracts were entered into with vendors that were suspended, debarred, or otherwise excluded. Written procurement and conflict of interest policies, in accordance with the Uniform Guidance, will be established and implemented during the year ended June 30, 2023.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 47140 2022-001
    Material Weakness
  • 47141 2022-002
    Material Weakness
  • 47142 2022-003
    Material Weakness
  • 47143 2022-001
    Material Weakness
  • 47144 2022-002
    Material Weakness
  • 47145 2022-003
    Material Weakness
  • 623582 2022-001
    Material Weakness
  • 623584 2022-003
    Material Weakness
  • 623585 2022-001
    Material Weakness
  • 623586 2022-002
    Material Weakness
  • 623587 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $814,761
21.019 Coronavirus Relief Fund $284,377