Finding Text
SUSPENSION AND DEBARMENT - COMPLIANCE FINDING: The Organization did not verify that contractors used were not suspended, debarred or otherwise excluded prior to entering into a contract with them. 0MB Uniform Guidance §200.180 provides that non-federal entities cannot enter into transactions with parties that are suspended or debarred from doing business with the federal government. The Organization's federal funding significantly increased in the year ended June 30, 2022 and was the first year that the Organization was required to undergo an audit in accordance with the Uniform Guidance. As noted in finding 2023- 001, the Organization's purchasing policies did not comply with the Uniform Guidance. The Organization was not aware that contractors should be verified prior to entering into a contract under the Uniform Guidance. It is possible that the Organization enters into a contract with a contractor that has been suspended, debarred or otherwise excluded. The Organization's written procurement policies should include a procedure to verify that contractors are not suspended, debarred or otherwise excluded prior to entering into a contract, and the Organization should perform and document these procedures performed.