MCALLEN CHAMBER OF COMMERCE INCNon-Profit

CRITERIA AND CONDITION: In accordance with 2 CFR 200, recipients of federal grants are required to conduct suspension and debarment verification for vendors and/or contractors that received $25,000 or more in federal funds to ensure that individuals or entities involved in the grant are not suspended, debarred, or otherwise excluded from participating in federal assistance programs. Our audit revealed that the Chamber failed to perform the necessary suspension and debarment verification for the federal grant awarded to them, in violation of 2 CFR 200 requirements. CAUSE AND EFFECT: The Chamber has not established policies or procedures to verify vendors and/or contractors receiving $25,000 or more in federal funds were not suspended or debarred from participating in federal assistance programs. Failure to comply with suspension and debarment verification requirements exposes the Chamber to significant risks, including the potential for engaging with ineligible parties, which could result in legal or financial consequences to the Chamber. QUESTIONED COST: None REPEAT FINDING FROM PRIOR YEAR: N/A RECOMMENDATION: We recommend the Chamber establish a written policy that clearly defines the procedures and requirements for suspension and debarment verification, in alignment with 2 CFR 200. This policy should outline the roles and responsibilities of personnel involved in grant management and provide guidance on conducting the verification process.