Finding Text
2023 – 002
Federal Agency: U.S. Department of Agriculture
Federal Program Name: Rural eConnectivity Pilot Program
Assistance Listing Number: 10.752
Federal Award Identification Number and Year: MD 1701-A64, 2020
Award Period: July 1, 2020 – July 1, 2025
Type of Finding: Significant Deficiency in Internal Control over Compliance
Criteria or Specific Requirement: When a nonfederal entity enters into a covered transaction with an entity at a lower tier, the nonfederal entity must verify that the 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.
Questioned Costs: None
Condition/Context: One of five vendors tested did not have proper documentation maintained to support suspension and debarment verification was performed prior to them being paid with federal funds. Per SAM.gov, there was no history of the vendor being suspended or debarred.
Cause: The Commission’s policies and procedures did not require documentation be maintained to verify vendors are not suspended or debarred prior to paying with Federal grant funds.
Effect: The Commission could make a disbursement to a vendor that is suspended or debarred.
Repeat Finding: This is not a repeat finding.
Recommendation: We recommend the Commission review its policies and procedures to require documentation be maintained to verify vendors are not suspended or debarred prior to being paid with federal funds.
Views of Responsible Officials: Management agrees with the finding.