Finding Text
Criteria: When a sub-recipient of federal awards uses federal money to acquire goods and services expected to cost more than $25,000, the sub-recipient must determine that the vendor is not suspended, debarred, or otherwise excluded from doing business with the federal government. Condition: The Council purchased services from one vendor totaling greater than $25,000 that required the Council to determine the vendor's status with the federal government. The vendors were, in fact, not excluded parties, but the Council had no consistent internal control in place to make that determination before the disbursements were made. Cause: The Council was unaware of this requirement. Effect: The Organization did comply with the federal compliance requirements. However, internal controls were such that noncompliance could occur and go undetected. Questioned Costs: None. Context: Actual expenditures of the grant totaled $499,989. Repeat Finding: No. Recommendation: We recommend the Council verify a vendor's status by checking the System for Award Management (SAM) maintained by the General Services Administration before making purchases expected to exceed $25,000. Views of Responsible Officials: The Council will verify all vendors' status using the System for Award Management (SAM) maintained by the General Services Administration before making purchases expected to exceed $25,000.