Finding Text
Federal Agency: U.S. Department of Environmental Protection Agency
Federal Program Name: Drinking Water State Revolving Fund Cluster
Assistance Listing Number: 66.468
Federal Award Identification Number and Year: 95302801, FY2022
Pass-Through Agency: State of Delaware - DNREC
Pass-Through Number(s): 21000105
Award Period: February 24, 2023 through Project Completion
Type of Finding: Significant Deficiency in Internal Control over Compliance
Criteria or Specific Requirement: When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal 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 one vendor 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 supporting documentation to be maintained to verify suspension & debarment check prior to entering into transactions.
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.