Finding 966139 (2023-002)

2023-002 Procurement Policy Criteria: The Uniform Guidance requires that, for covered transactions, the non-Federal entity verify that entities are not suspended, debarred, or otherwise excluded. Condition: During our audit, we inquired with management regarding their procurement policy that was implemented in April 2022. While policy exists, there were no specific procedures noted in the procurement policy to ensure that vendors are not suspended or debarred. Cause: The Organization’s procurement policy did not include procedures to ensure that vendors are suspended or debarred. Effect: Not having a procedure in place could result in payments to suspended or debarred entities. Questioned Costs: None noted. Context: Ensuring that the Organization’s vendors are not suspended or debarred should be part of the expense approval process. Auditors tested a selection of expenses to determine if any of the selected vendors were suspended or debarred. None were identified as suspended or debarred in this testing. Repeat Finding: No. Recommendation: The Organization should amend the policy to adhere to the stated criteria. Views of Responsible Officials: Management agrees with the finding and a response is included in the corrective action plan.