Friends of Little SaigonNon-Profit

Internal Controls over Suspension and Debarment Requirements Federal Agency: U.S. Department of Housing and Urban Development Assistance Listing Number: 14.251 Federal Program Name: Economic Development Initiative, Community Project Funding, and Miscellaneous grants Criteria: Under 2 CFR 200.303(a), the non-federal entity must establish and maintain effective internal control over compliance with the requirements of federal awards. Condition: Documentation of internal controls over compliance with suspension and debarment requirements at the time of procurement could not be located for covered transactions. Cause and Context: The Organization had begun planning the Landmark Building project before the major federal award agreements were finalized and, as such, had not implemented specific suspension and debarment procedures at that time. The Organization has since performed suspension and debarment verifications for all vendors with covered transactions charged to major federal award programs. Effect: Inadequate internal controls over suspension and debarment requirements may result in the Organization incurring disallowed costs from prohibited vendors. Recommendation: We recommend that management retains documentation of suspension and debarment verifications for all vendors with whom the Organization has covered transactions. Views of Responsible Officials: There is no disagreement with the finding.