Finding 959144 (2023-002)

- Repeat Finding
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-03-21

AI Summary

  • Core Issue: One out of six procurement samples lacked proof of a suspension and debarment check before contracting with a vendor.
  • Impacted Requirements: Non-compliance with 2 CFR §200.318 and §180.300, which mandate checks against debarred entities prior to contracts.
  • Recommended Follow-Up: Ensure adherence to suspension and debarment regulations and implement corrective actions to prevent future occurrences.

Finding Text

2023-002 Compliance with Procurement, Suspension and Debarment Requirement Information on the Federal Program: U.S. Department of State Assistance Listing Number: 19.517 Assistance Listing Name: Overseas Refugee Assistance for Africa Grant Award Number: Direct Award Number Award Period SPRMCO23CA0016 November 21, 2022 through July 31, 2024 Criteria or Specific Requirement: In accordance with 2 CFR §200.318(a), General Procurement Standards, the non-federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations, provided that the procurements conform to applicable federal law and the standards identified in General Procurement Standards. Additionally, §200.318(i) states that the non-federal entity must maintain records sufficient to detail the history of the procurement. These records are required to include, but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. In accordance with §200.213 and §180.300, Suspension and Debarment, non-federal entities cannot enter into awards, subawards, or contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Non-federal entities must either check for exclusions in the System for Award Management (SAM); collect a certification from the entity, or add a clause or condition to the covered transaction with the entity prior to entering into a covered transaction with a non-federal entity. In addition, in accordance with §180.415(b), non-federal entities cannot renew or extend covered transactions (other than no-cost time extension) with any excluded person, or under which an excluded person is a principal, unless the non-federal entity obtains an exception under §180.135. Condition: During our testing of the procurement, suspension and debarment compliance requirements, we identified one procurement sample out of a total of six procurement samples tested wherein management was unable to provide evidence that the suspension and debarment check was performed prior to entering into contract with the vendor. Management has subsequently determined that the vendor was not suspended or debarred. Questioned Costs: There are no known or likely questioned costs. Context: This is a condition based on testing of CRS’s compliance with specified requirements. The prevalence of the finding is detailed in the condition section above. The samples were selected using a non-statistical method. Cause: CRS country office personnel did not adhere to CRS’s documented policies and procedures for ensuring proper suspension and debarment validations were performed prior to entering a covered transaction. Effect: Failure to timely verify that a vendor is not suspended or debarred could result in transactions involving unreasonable costs or result in unintentionally entering into a contract with an entity that is barred from performing work for the Federal government. Repeat Finding: This is a repeat of finding 2022-003. Recommendation: We recommend that management ensure that suspension and debarment regulations are followed. Views of Responsible Officials: Management notes that the total comprehensive checks executed against major watchlists (including SAM.gov) in CRS totaled 24,513 (unaudited) in FY 2023 alone. While management agrees with BDO's assessment of the samples, it should be noted that CRS is strongly committed to compliance with applicable suspension and debarment regulations. Please see Appendix B for Management’s Corrective Action Plan.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
19.520 Overseas Refugee Assistance Programs for Europe $4.20M
98.009 John Ogonowski Farmer-to-Farmer Program $3.36M
10.606 Food for Progress $2.60M
19.519 Overseas Refugee Assistance Program for Near East and South Asia $2.30M
19.523 Overseas Refugee Assistance Program for South Asia $2.05M
10.612 Usda Local and Regional Food Aid Procurement Program $885,750
19.800 Weapons Removal and Abatement $569,825
93.318 Protecting and Improving Health Globally: Building and Strengthening Public Health Impact, Systems, Capacity and Security $293,167
10.619 International Agricultural Education Fellowship Program $180,408
19.703 Criminal Justice Systems $151,225
93.242 Mental Health Research Grants $91,905
93.067 Global Aids $76,091
19.517 Overseas Refugee Assistance Programs for Africa $51,764
19.511 Overseas Refugee Assistance Programs for East Asia $37,487
98.007 Food for Peace Development Assistance Program (dap) $25,358
19.345 International Programs to Support Democracy, Human Rights and Labor $10,791
10.608 Food for Education $6,137
19.518 Overseas Refugee Assistance Programs for Western Hemisphere $1,712
98.008 Food for Peace Emergency Program (ep) $17
98.001 Usaid Foreign Assistance for Programs Overseas $-20,695