Finding Text
SECTION III FEDERAL AWARD AUDIT FINDINGS 2022-001 Finding Type Significant Deficiency Federal Program Emergency Solutions Grant Program, ALN #14.231 Criteria Pursuant to 2 CFR ?180, Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Covered transactions include contracts for goods and services that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR ?180.220. Condition During our testing, we noted that the Organization does not review the System for Award Management?s (SAM) Excluded Parties Listing prior to engaging in covered transactions with vendors. Cause There are no formal policies or procedures in place to review the SAM Excluded Parties Listing prior to procuring goods and services from vendors. Effect The Organization is at risk of procuring goods or services from a vendor that has been suspended or debarred by the Federal government. This could result in significant questioned costs. Identification of a Repeat Finding This is not a repeat finding from the prior year?s audit. Questioned Costs None. Recommendation We recommend management establish procedures to ensure that suspension and debarment exclusion verifications are performed prior to engaging in covered transactions with vendors. These procedures should include reviewing the SAM Excluded Parties Listing prior to adding a new vendor to the accounting system, as well as annually for any recurring vendors with procurement transactions equaling or exceeding $25,000. Response Management will implement a new policy to ensure that suspension and debarment exclusion verifications are performed prior to engaging in covered transactions with vendors.