Finding Text
Department of the Treasury, Passed through Utah Department of Workforce Services
Federal Assistance Listing 21.027
Coronavirus State and Local Fiscal Recovery Funds
Procurement, Suspension, and Debarment
Significant Deficiency in Internal Control over Compliance
Criteria: Nonfederal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred.
Condition: The Organization’s controls do not include documenting the procedure used to determine that contractors are not suspended, debarred, or otherwise excluded pursuant to 31 CFR 19.300 and retaining documentation thereof.
Cause: The Organization searched SAM.gov to determine whether potential contractors or vendors were excluded; however, the Organization did not have internal controls in place to document the procedure performed to determined contractors or vendors are not suspended or debarred.
Effect: The Organization is not able to demonstrate its compliance to auditors.
Questioned Costs: None reported.
Context/Sampling: Nonstatistical sampling was used. Sample size was three of seven procurement transactions above the micro-purchase threshold and included contract totaling $5,707,820 of federal awards. Repeat Finding from Prior Year(s): Yes, Finding 2022-002
Recommendation: We recommend the Organization implement internal controls to document review of potential contractors and vendors for suspension and debarment
Views of Responsible Officials: Management agrees with this finding.