Finding 624125 (2022-002)

2022-002 Finding ? Procurement (Significant Deficiency ? AL 84.425) Criteria Uniform guidance requires a procurement policy that adheres to all federal requirements and thresholds. Furthermore, any contract entered into at $25,000 or more should be checked to ensure the contracting vendor is not suspended or disbarred from receiving federal funds. Condition/Context While reviewing the College?s procurement policy, we noted several items that were not included in order to be in compliance with Uniform Guidance. With a population of 7, we noted that 2 contractors did not have a suspension and debarment clause listed in the signed contract on hand. We also noted that one of these contractors was not checked to ensure they were not suspended or disbarred from receiving federal funds. Cause Management oversight. Effect The College could enter into a contract with a contractor that is suspended or debarred from receiving federal funds. In this instance, all contractors were ultimately allowed to receive federal funds. Repeat Finding No Questioned Costs None Recommendation The College should review and update their procurement policy to comply with Uniform Guidance. They should also implement policies and procedures to ensure all contractors are reviewed on the federal suspension and debarment list, and all contracts have the appropriate clause. Views of Responsible Officials and Planned Corrective Actions The College agrees with the recommendation and will implement the recommendations immediately.