Finding 943822 (2023-004)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-02-14
Audit: 290359
Organization: The Inner Voice, Inc. (IL)

AI Summary

  • Core Issue: Inner Voice failed to obtain necessary suspension and debarment certifications for two out of five procurement transactions.
  • Impacted Requirements: Compliance with 2 CFR section 180.995, which mandates verification of non-Federal entities' eligibility before procurement.
  • Recommended Follow-Up: Ensure all procurement contracts are verified against the SAM Exclusions list, collect certification forms, or include relevant clauses in contracts.

Finding Text

Federal Agency: Department of Veterans Affairs Federal Program Name: VA Homeless Providers Grant and Per Diem Program Assistance Listing Number: 64.024 Federal Award Identification Number and Year: INNV143-1419-537-PD-21; INNV143-1620-537-TP-21; INNV143-1075-537-CM20; INNV143-2290-537-CM-22 Award Period: 10/1/20-9/30/21; 10/1/21-9/30/22; 10/1/20-9/30/23 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Criteria or specific requirement: When Inner Voice enters a covered transaction with an entity at a lower tier, Inner Voice must verify that the non-Federal entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: In testing the suspension and debarment requirement, it was noted not all certifications with vendors were obtained prior to executing the procurement contract. Questioned costs: None. Context: We noted two out of five procurement transactions tested, suspension and/or debarment certifications were not obtained prior to executing the transaction. Cause: The Inner Voice was not aware of the need to verify non-Federal entities were not suspended or debarred prior to procurement. Effect: By not obtaining proper suspension and debarment certifications, Inner Voice runs the risk of securing a contract with a vendor who is suspended or debarred. Repeat Finding: This is not a repeat finding. Recommendation: We recommend Inner Voice verify all procurement contracts are with vendors who are not suspended or debarred. This verification may be accomplished by: 1. Checking the System for Award Management (SAM) Exclusions 2. Collecting a certification form, or 3. Adding a clause or condition to the covered transaction with that entity Views of responsible officials and planned corrective actions: Management agrees with the finding. Vendors who reached $20,000 in payments during the fiscal year will be reviewed in SAM for exclusions prior to procurement.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 367377 2023-001
    Material Weakness Repeat
  • 367378 2023-002
    Material Weakness Repeat
  • 367379 2023-003
    Significant Deficiency Repeat
  • 367380 2023-004
    Significant Deficiency
  • 943819 2023-001
    Material Weakness Repeat
  • 943820 2023-002
    Material Weakness Repeat
  • 943821 2023-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
64.024 Va Homeless Providers Grant and Per Diem Program $185,820
21.027 Rapid Re-Housing Program for Gender-Based Violence - Coronavirus State Fiscal Recovery Funds (arpa) $150,898
21.027 Rapid Re-Housing Program - Coronavirus State Fiscal Recovery Funds (arpa) $132,134
21.027 Arpa Add Ons - Coronavirus State and Local Fiscal Recovery Funds $110,000
14.218 Community Development Block Grant $85,580
14.231 Emergency Solutions Grant Program $68,991
97.024 Fema $40,600
14.267 Continuum of Care Program $18,907
21.027 E & Th - Coronavirus State and Local Fiscal Recovery Funds (arpa) $16,577
14.218 Community Development Block Grant Cares Act 2020 $6,959
21.027 Honor Grant - Arpa Covid-19 $6,171