Finding Text
UNITED STATES DEPARTMENT OF EDUCATION
Significant Deficiency in Internal Control over Compliance
2023-001 Special Education Cluster, ALN. 84.027, 84.173
Award Period: July 1, 2022 – June 30, 2023
Compliance Requirement: Suspension and Debarment
Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Title 2 Part 200.214 states that nonfederal
entities are subject to the nonprocurement debarment and suspension regulations implementing Executive Orders
12549 and 12689, 2 CFR part 180. These regulations restrict awards, subawards, and contracts with certain parties that
are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or
activities.
Condition and Context: For the one vendor in our audit sample, documentation was not provided to support that the
City verified the vendor was not debarred or suspended from participation in Federal assistance programs or activities
for the fiscal year 2023 time period.
Questioned Costs: None. The vendor was not suspended or debarred.
Cause: Procedures were not adhered to for the documentation of the verification that all vendors were not suspended
or debarred from participation in Federal assistance programs or activities.
Effect: While this did not occur in the instances identified in this finding, lack of verification of vendors’ debarment or
suspension status could cause federal grant funds to be expended with vendors that are excluded from participation in
Federal assistance programs or activities.
Repeat Finding: No.
Recommendation: We recommend procedures be strengthened to document the verification that all vendors are not
suspended or debarred from participation in Federal assistance programs or activities.
Views of Responsible Officials: Management agrees with the finding.