Finding 970369 (2023-001)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-04-22
Audit: 304084
Auditor: Rfh PLLC

AI Summary

  • Core Issue: The District lacks a process to check if contractors are suspended or debarred from federal contracts.
  • Impacted Requirements: Non-federal entities must not engage with suspended or debarred parties under federal awards.
  • Recommended Follow-Up: Implement a review process for debarment status before contracting, with a deadline of April 30, 2024.

Finding Text

Criteria: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: During our audit we noted that the District did not have a process in place for ensuring that parties it contracts with have not been suspended or debarred. As part of the audit, we examined the debarment status of vendors with which the District contracted for approximately 91% of the federal award and noted that there were no active exclusions on these vendors. Cause: Internal controls over suspension and debarment are inadequate. Effect: The District could use federal funds to pay a party who has been suspended or debarred by the federal government. Recommendation: We recommend that the District establish a control process to review the debarment status of parties prior to contracting with the party under a federal award. RESPONSE: The District will include a suspension and debarment clause within its procurement contracts. The District will also review the SAM website for each contractor to determine whether the contractor has been suspended or debarred. This will be implemented no later than April 30, 2024.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 393927 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $500,000