Overview
A&F did not maintain a consolidated debarred vendor list that contained all required information. Instead, it relied upon lists to which the Division of Capital Asset Management and Maintenance links on its website.
Our review also found that the lists to which the Division of Capital Asset Management and Maintenance linked on its website were missing information. Specifically, those lists did not include the extent of debarment restrictions and, in cases involving suspensions, hearing dates for debarment proceedings.
Because state agencies must check multiple debarred vendor lists before awarding a contract, if A&F does not maintain a consolidated debarred vendor list that contains all the required information, then there is a higher-than-acceptable risk that state agencies could mistakenly award state contracts to debarred vendors.
Authoritative Guidance
According to Section 29F(b) of Chapter 29 of the General Laws,
The secretary of administration and finance shall establish and maintain a consolidated list of contractors to whom public contracts shall not be awarded and from whom offers, bids or proposals shall not be solicited.
The list shall show at a minimum the following information: . . . (3) the extent of restrictions imposed; . . . and (5) in the case of a suspension, the hearing date, if and when set, for debarment proceedings.
Reasons for Issue
According to A&F officials, A&F’s debarred vendor list is maintained by the Division of Capital Asset Management and Maintenance. Other state agencies maintain their own debarred vendor lists, to which the Division of Capital Asset Management and Maintenance links on its website. Because each state agency maintains its own debarred vendor list, A&F does not have policies, procedures, and internal controls regarding the maintenance of a consolidated debarred vendor list across all state agencies.
Recommendations
- A&F should maintain a consolidated debarred vendor list.
- A&F should develop policies, procedures, and internal controls to ensure that it maintains a consolidated debarred vendor list that contains all the required information.
Auditee’s Response
During the past few months, ANF has reviewed requirements and practices under [Section 29F of Chapter 29 of the General Laws,] which requires that the Secretary of Administration and Finance establish and maintain a consolidated list of contractors to whom public contracts shall not be awarded and from whom offers, bids or proposals shall not be solicited. ANF’s practice to date has been to have its Division of Capital Asset Management and Maintenance maintain a page that included a list of any vendors they had debarred and links to the debarred entity lists maintained by other authorities. Over the next year, we will consider and develop policies, procedures and internal controls to best meet that mandate beyond current practice.
Auditor’s Reply
A&F states in its response, “Over the next year, we will consider and develop policies, procedures and internal controls to best meet that mandate beyond current practice.” A&F should take measures even sooner to address our concerns on this matter, as every day that passes creates additional opportunities for state agencies and local governments to contract with debarred vendors. As part of our post-audit review process, we will be following up on this issue in the near future.
| Date published: | May 29, 2024 |
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