Finding Text
2022-001 Agency and pass through entities: U.S. Department of Treasury passed through Wisconsin Department of Agriculture, Trade and Consumer Protection and Feeding Wisconsin, Inc. Federal program and award numbers: 21.027, COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (ARP). Award number 445404. Criteria: Uniform Guidance requires the Organization establish and maintain effective internal control over federal awards over procurement to ensure vendors are not suspended, debarred or otherwise excluded pursuant to 31 CFR section 19.300. Statement of condition: The Organization did not implement controls to verify vendors utilized were not suspended, debarred of otherwise excluded pursuant to 31 CFR section 19.300. Questioned costs: The amount of questioned costs could not be determined. Context: The Organization is required by the Uniform Guidance and State Single Audit Guidlines to comply with suspension and debarment. Management did not verify vendors were not suspended, debarred or otherwise ineligible to receive federal funds prior to disbursing funds. During the audit process, management performed procedures on each vendor used for the program and none were suspended, debarred or ineligible. Effect: Federal funds could be expended to suspended, debarred or otherwise excluded vendors. Cause: Management did not have controls in place to ensure new and existing vendors are not suspended or debarred. Recommendation: We recommend management implement procedures and controls in which the Organization verifies new and existing vendors are not suspended or debarred prior to entering in to transactions with vendors. Management Response: Management agrees with the finding. Management has since put in place an automated service to check compliance on a monthly basis. The service, VerifyComply, scans State and Federal databases for individuals or organizations who are excluded from receiving Federal funding. Existing entities that the Organization has relationships with as vendors or partner agencies were scanned on October 13, 2022 and no excluded parties were found.