Finding 977831 (2021-005)

Finding: Procurement, Suspension and Debarment Federal Assistance Listing Number 20.205 – Highway Planning and Construction (Federal-Aid Highway Program) Award Number – A17AP00029; Award Year 2017 Criteria: According to 2 CFR Part 180.300 – The non-federal entity must establish procedures for verifying that an entity with which it plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded. Such procedures can include (a) reviewing SAM.gov for exclusions, (b) collecting a certification from the entity, (c) adding a clause or condition to the covered transaction. Condition: The Department did not have documentation that the internal controls in place over suspension and debarment were followed. Questioned Costs: None. Context: The Department was unable to provide supporting documentation that the internal controls in place over suspension and debarment regarding entering into covered transactions were followed during 2021, which include reviewing the entity’s status in SAM.gov. Effect: Without the appropriate supporting documentation, the Department is unable to ensure it has not entered into a transaction with a suspended or debarred party. Cause: The Department experienced turnover during fiscal year 2021 and supporting documentation could not be located. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend the Department ensure suspension and debarment status is verified in accordance with Department policy. Additionally, supporting documentation should be maintained within the contracting file. Views of Responsible Officials: The Department agrees with the finding. See separate report for planned corrective actions.