Finding Text
Criteria:
Non-federal entities are prohibited from contracting with or making subawards under covered
transactions to parties that are suspended or debarred.
Condition:
During our testing of 60 grant expenditures, we were not able to view documentation that
vendors had been reviewed to verify they were not suspended or debarred from the federal
government. After additional analysis, it was deemed all vendors were permitted and resulted
in no questioned costs.
Cause:
Internal controls over suspension and debarment are inadequate.
Effect:
Grant funds could be used to pay vendors who are suspended or debarred.
Recommendation:
We recommend the Organization established controls over suspension and debarment,
including comparing the suspended and debarred vendors to the listing at sam.gov.
View of Responsible Officials:
Management agrees with this finding and internal controls are being implemented to address
this issue.