Finding 979508 (2023-001)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-06-26

AI Summary

  • Core Issue: One Roof failed to check if vendors for the Plover Place project were debarred or suspended before making payments.
  • Impacted Requirements: This oversight violates Uniform Guidance, which mandates verification of vendor status within 30 days.
  • Recommended Follow-Up: Management should create a policy to ensure vendor checks are performed and results reported, with Peter Krieger overseeing the implementation.

Finding Text

Criteria - Uniform Guidance requires that One Roof determine whether any individual or entity receiving federal funds is currently debarred, suspended, excluded, or disqualified by the Department of the Treasury, or any other Federal department or agency, and reported within 30 days. Based on this criteria, One Roof was required to determine whether vendors selected to complete the construction of the housing project known as Plover Place were debarred, suspended, excluded, or disqualified prior to making any payments to them. Condition - One Roof did not perform any procedures to determine whether vendors that were selected were currently debarred, suspended, excluded, or disqualified. Context - We tested a sample of the vendors selected for the construction of Plover Place. The results of our testing indicated that none of the vendors selected were suspended or debarred. Cause - One Roof personnel were not aware of this requirement. Effect - Disbursement of federal funds to a person or entity that is currently debarred or suspended could occur and not be reported. Failure to report such a disbursement may result in required repayment of the federal award received by One Roof and render One Roof ineligible to apply for additional federal awards in future funding rounds. Recommendation - We recommend that management implement a policy to test whether individuals or entities receiving funds are currently debarred or suspended, and to report the results if necessary. Auditee’s comments and response - One Roof is in the process of updating policies to include testing if individuals or entities that are vendors for One Roof are debarred or suspended. Responsible party for corrective action: Peter Krieger, Housing Development & Construction Director.

Categories

Procurement, Suspension & Debarment Eligibility

Other Findings in this Audit

  • 403066 2023-001
    Material Weakness
  • 403067 2023-001
    Material Weakness
  • 979509 2023-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $893,244
14.218 Community Development Block Grants/entitlement Grants $643,134
21.000 Neighborworks America $318,500
14.239 Home Investment Partnerships Program $202,268
14.169 Housing Counseling Assistance Program $25,006
14.252 Section 4 Capacity Building for Community Development and Affordable Housing $10,304
21.020 Community Development Financial Institutions Program $2,636