Finding 2024-001
other matters
- Program
- CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS (21.027); ECONOMIC DEVELOPMENT INITIATIVE, COMMUNITY PROJECT FUNDING, AND MISCELLANEOUS GRANTS (14.251)
- Compliance requirement
- Subrecipient monitoring
- FAC record
- FY2024 audit on fac.gov
Finding text from the filing
Criteria: Suspension and Debarment. Non-federal entities are prohibited from contracting with parties who are suspended or debarred from federal awards. For certain covered transactions over $25,000, the program must verify that an entity is not suspended or debarred through the System for Award Management (SAM), alternative certification or contract language. Condition: One vendor paid $2,256,379 in program 14.251 and $990,000 in program 21.027 for a total of $3,246,379 was verified using the System for Award Management (SAM) but support was not retained by management. Questioned Costs: There are no questioned costs as there may be no debarred vendors. Context: Vendors on this project were paid enough federal funds to require the program to verify that the provider is not suspended or debarred. Effect: Amounts may be paid to parties not eligible to receive federal funding. Cause: This purchase was for contract services and Habitat thought that the request for proposal and bid documentation included this language and that the SAM system was checked. Recommendation: We recommend management check the System for Award Management (SAM) or include contract language to ensure federal funds are not paid to suspended or debarred parties. Management’s Response: Agree Contact Person: Cheri Witt-Brown, CEO