Finding 943096 (2021-001)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2021
Accepted
2024-02-08

AI Summary

  • Core Issue: DSAL lacks a procurement policy and fails to check vendor suspension or debarment status before making payments.
  • Impacted Requirements: This violates Federal regulations under Uniform Grant Guidance, risking compliance and funding.
  • Recommended Follow-up: Implement a policy to verify vendor status before contracts, with a completion target of November 20, 2022.

Finding Text

2021-001 - Procurement, Suspension and Debarment (Significant Deficiency) Condition: During our testwork over procurement, we noted that there were no procurement policy and payments made to vendors before checking suspension or debarment status on www.sam.gov. Criteria: Uniform Grant Guidance and 2 CFR Part 200 Subpart C and D: §200.213 Suspension and debarment. Non-federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. These regulations restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Cause: DSAL did not establish adequate internal controls and procedures and procurement policy to ensure and maintain documentation to show that vendors were not suspended, debarred, or otherwise excluded from participating in contracts that are funded through Federal awards. Effect: DSAL is not in compliance with Federal regulations related to the grant and this could put its funding in jeopardy or require DSAL to reimburse the program for improper grant distributions. Auditor's Recommendation: We recommend that DSAL establish a policy and implement procedures to ensure the suspension or debarment status of vendors before entering into contract or transactions funded through Federal grants. Management Response: Management agrees with the findings and has provided the accompanying corrective action plan. Estimated Completion Date: November 20, 2022 Responsible Party: Patrick Eiser - DSAL Operations Director

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 366654 2021-001
    Significant Deficiency
  • 366655 2021-002
    Material Weakness
  • 366656 2021-003
    Material Weakness
  • 943097 2021-002
    Material Weakness
  • 943098 2021-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.U01 Emergency Food Distribution and Meal Delivery $4.03M
16.738 Edward Byrne Memorial Justice Assistance Grant Program $866,873
93.U01 Crime Prevention & Neighborhood Development Services $491,695
14.218 Community Development Block Grants/entitlement Grants $195,766
93.U02 Public Health Nutrition Services to Law-Income Residents(measure A) $101,090