Audit 22792

FY End
2022-06-30
Total Expended
$2.44M
Findings
12
Programs
13
Organization: Lakeland Union High School (WI)
Year: 2022 Accepted: 2023-03-23

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
22988 2022-005 Significant Deficiency - L
22989 2022-006 Significant Deficiency - I
22990 2022-005 Significant Deficiency - L
22991 2022-006 Significant Deficiency - I
22992 2022-005 Significant Deficiency - L
22993 2022-006 Significant Deficiency - I
599430 2022-005 Significant Deficiency - L
599431 2022-006 Significant Deficiency - I
599432 2022-005 Significant Deficiency - L
599433 2022-006 Significant Deficiency - I
599434 2022-005 Significant Deficiency - L
599435 2022-006 Significant Deficiency - I

Contacts

Name Title Type
HMGKRMNQ1V48 Edward Then Auditee
7153565252 Jon Trautman, CPA Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Revenues and expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the Districts 2022 fund financial statements. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the District in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded District expenditures. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Because of subsequent program adjustments, these amounts may differ from the prior years ending balances. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedules of expenditures of federal and state awards for the Lakeland Union High School District are presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State Single Audit Guidelines issued by the Wisconsin Department of Administration.The schedules of expenditures of federal and state awards include all federal and state awards of the District. Because the schedules present only a selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in net position, or cash flows of the District.
Title: SPECIAL EDUCATION AND SCHOOL AGE PARENTS PROGRAM Accounting Policies: Revenues and expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the Districts 2022 fund financial statements. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the District in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded District expenditures. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Because of subsequent program adjustments, these amounts may differ from the prior years ending balances. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The 2021 - 2022 eligible costs under the State Special Education Program as reported by the District are $2,613,957. Compiled information required by compliance requirement 1-1 of the Special Education Audit Program was reported to the Wisconsin Department of Public Instruction.
Title: FOOD DISTRIBUTION Accounting Policies: Revenues and expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the Districts 2022 fund financial statements. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the District in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded District expenditures. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Because of subsequent program adjustments, these amounts may differ from the prior years ending balances. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Nonmonetary assistance is reported in the schedule of expenditures of federal awards at the fair market value of the commodities received and disbursed.
Title: OVERSIGHT AGENCIES Accounting Policies: Revenues and expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the Districts 2022 fund financial statements. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the District in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded District expenditures. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Because of subsequent program adjustments, these amounts may differ from the prior years ending balances. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Wisconsin Department of Public Instruction is the state oversight agency for the District.
Title: PASS-THROUGH ENTITIES Accounting Policies: Revenues and expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the Districts 2022 fund financial statements. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the District in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded District expenditures. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Because of subsequent program adjustments, these amounts may differ from the prior years ending balances. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Federal awards have been passed through the following entity:WI DPI - Wisconsin Department of Public InstructionCESA #9 - Cooperative Educational Services Agency #9

Finding Details

Child Nutrition Cluster Reporting Federal Agency: U.S. Department of Agriculture Federal Program Name: School Breakfast Program, National School Lunch Program Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: WI Department of Public Instruction Pass-Through Number(s): 2022-433647-DPI-SB-SEVERE-546, 2022-433647-DPI-NDL-547 Award Period: 7/1/2021 ? 6/30/2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Grant claims filed by the District to the various granting agencies must be accurate and reconcile to the District?s records. Internal controls should be designed and implemented to prevent and detect errors in the data reported on the grant claims. Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction. Condition: Of the 7 tested monthly claim forms, 5 did not reconcile to the underlying meal count records of the district. There was no review of the reports and claims for reimbursement by someone other than the preparer prior to submission. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned costs: None Context: In the 4 National School Lunch Plan claims tested, the District reported 30,130 meals served, but had records to support 30,101, and of the 3 School Breakfast claims tested, the District reported 8,340 meals served, but had records to support 8,329. Cause: Due to the changes in the school lunch program caused by the pandemic, the District utilized manual count sheets for meals served during the year. One individual was responsible for compiling the count sheets and completing the monthly reporting. However, the District has not designated an individual to review and approve the report prior to submission to ensure there was not an error during the compilation and preparation procedure. Effect: The District filed incorrect meal reporting during the year and received the incorrect funding amount. Repeat Finding: No Recommendation: We recommend that the District review its internal controls and designate an individual other than the preparer to review and approve any grant claims.
Child Nutrition Cluster Suspension and Debarment Federal Agency: U.S. Department of Agriculture Federal Program Name: School Breakfast Program, National School Lunch Program Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: WI Department of Public Instruction Pass-Through Number(s): 2022-433647-DPI-SB-SEVERE-546, 2022-433647-DPI-NDL-547 Award Period: 7/1/2021 ? 6/30/2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Nonfederal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. Condition: The District did not maintain documentation that a search for suspension and debarment was performed for select vendors within the food service program. Questioned costs: None Context: Of the one vendor in excess of the $25,000 threshold, none of them had a review of suspension and debarment over procurement. Cause: The District did not have a procedure in place to perform a search for suspension and department associated for vendors with cumulative procurement transactions in excess of the $25,000 threshold. Effect: Certain vendors could be used that are considered suspended or debarred by the federal government resulting in noncompliance. Repeat Finding: No Recommendation: We recommend that the District review its policies over suspension and debarment review to ensure they are maintaining compliance and controls over verifying or contracting with vendors that are allowable Views of responsible officials: Refer to the management?s response per the corrective action plan.
Child Nutrition Cluster Reporting Federal Agency: U.S. Department of Agriculture Federal Program Name: School Breakfast Program, National School Lunch Program Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: WI Department of Public Instruction Pass-Through Number(s): 2022-433647-DPI-SB-SEVERE-546, 2022-433647-DPI-NDL-547 Award Period: 7/1/2021 ? 6/30/2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Grant claims filed by the District to the various granting agencies must be accurate and reconcile to the District?s records. Internal controls should be designed and implemented to prevent and detect errors in the data reported on the grant claims. Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction. Condition: Of the 7 tested monthly claim forms, 5 did not reconcile to the underlying meal count records of the district. There was no review of the reports and claims for reimbursement by someone other than the preparer prior to submission. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned costs: None Context: In the 4 National School Lunch Plan claims tested, the District reported 30,130 meals served, but had records to support 30,101, and of the 3 School Breakfast claims tested, the District reported 8,340 meals served, but had records to support 8,329. Cause: Due to the changes in the school lunch program caused by the pandemic, the District utilized manual count sheets for meals served during the year. One individual was responsible for compiling the count sheets and completing the monthly reporting. However, the District has not designated an individual to review and approve the report prior to submission to ensure there was not an error during the compilation and preparation procedure. Effect: The District filed incorrect meal reporting during the year and received the incorrect funding amount. Repeat Finding: No Recommendation: We recommend that the District review its internal controls and designate an individual other than the preparer to review and approve any grant claims.
Child Nutrition Cluster Suspension and Debarment Federal Agency: U.S. Department of Agriculture Federal Program Name: School Breakfast Program, National School Lunch Program Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: WI Department of Public Instruction Pass-Through Number(s): 2022-433647-DPI-SB-SEVERE-546, 2022-433647-DPI-NDL-547 Award Period: 7/1/2021 ? 6/30/2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Nonfederal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. Condition: The District did not maintain documentation that a search for suspension and debarment was performed for select vendors within the food service program. Questioned costs: None Context: Of the one vendor in excess of the $25,000 threshold, none of them had a review of suspension and debarment over procurement. Cause: The District did not have a procedure in place to perform a search for suspension and department associated for vendors with cumulative procurement transactions in excess of the $25,000 threshold. Effect: Certain vendors could be used that are considered suspended or debarred by the federal government resulting in noncompliance. Repeat Finding: No Recommendation: We recommend that the District review its policies over suspension and debarment review to ensure they are maintaining compliance and controls over verifying or contracting with vendors that are allowable Views of responsible officials: Refer to the management?s response per the corrective action plan.
Child Nutrition Cluster Reporting Federal Agency: U.S. Department of Agriculture Federal Program Name: School Breakfast Program, National School Lunch Program Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: WI Department of Public Instruction Pass-Through Number(s): 2022-433647-DPI-SB-SEVERE-546, 2022-433647-DPI-NDL-547 Award Period: 7/1/2021 ? 6/30/2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Grant claims filed by the District to the various granting agencies must be accurate and reconcile to the District?s records. Internal controls should be designed and implemented to prevent and detect errors in the data reported on the grant claims. Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction. Condition: Of the 7 tested monthly claim forms, 5 did not reconcile to the underlying meal count records of the district. There was no review of the reports and claims for reimbursement by someone other than the preparer prior to submission. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned costs: None Context: In the 4 National School Lunch Plan claims tested, the District reported 30,130 meals served, but had records to support 30,101, and of the 3 School Breakfast claims tested, the District reported 8,340 meals served, but had records to support 8,329. Cause: Due to the changes in the school lunch program caused by the pandemic, the District utilized manual count sheets for meals served during the year. One individual was responsible for compiling the count sheets and completing the monthly reporting. However, the District has not designated an individual to review and approve the report prior to submission to ensure there was not an error during the compilation and preparation procedure. Effect: The District filed incorrect meal reporting during the year and received the incorrect funding amount. Repeat Finding: No Recommendation: We recommend that the District review its internal controls and designate an individual other than the preparer to review and approve any grant claims.
Child Nutrition Cluster Suspension and Debarment Federal Agency: U.S. Department of Agriculture Federal Program Name: School Breakfast Program, National School Lunch Program Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: WI Department of Public Instruction Pass-Through Number(s): 2022-433647-DPI-SB-SEVERE-546, 2022-433647-DPI-NDL-547 Award Period: 7/1/2021 ? 6/30/2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Nonfederal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. Condition: The District did not maintain documentation that a search for suspension and debarment was performed for select vendors within the food service program. Questioned costs: None Context: Of the one vendor in excess of the $25,000 threshold, none of them had a review of suspension and debarment over procurement. Cause: The District did not have a procedure in place to perform a search for suspension and department associated for vendors with cumulative procurement transactions in excess of the $25,000 threshold. Effect: Certain vendors could be used that are considered suspended or debarred by the federal government resulting in noncompliance. Repeat Finding: No Recommendation: We recommend that the District review its policies over suspension and debarment review to ensure they are maintaining compliance and controls over verifying or contracting with vendors that are allowable Views of responsible officials: Refer to the management?s response per the corrective action plan.
Child Nutrition Cluster Reporting Federal Agency: U.S. Department of Agriculture Federal Program Name: School Breakfast Program, National School Lunch Program Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: WI Department of Public Instruction Pass-Through Number(s): 2022-433647-DPI-SB-SEVERE-546, 2022-433647-DPI-NDL-547 Award Period: 7/1/2021 ? 6/30/2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Grant claims filed by the District to the various granting agencies must be accurate and reconcile to the District?s records. Internal controls should be designed and implemented to prevent and detect errors in the data reported on the grant claims. Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction. Condition: Of the 7 tested monthly claim forms, 5 did not reconcile to the underlying meal count records of the district. There was no review of the reports and claims for reimbursement by someone other than the preparer prior to submission. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned costs: None Context: In the 4 National School Lunch Plan claims tested, the District reported 30,130 meals served, but had records to support 30,101, and of the 3 School Breakfast claims tested, the District reported 8,340 meals served, but had records to support 8,329. Cause: Due to the changes in the school lunch program caused by the pandemic, the District utilized manual count sheets for meals served during the year. One individual was responsible for compiling the count sheets and completing the monthly reporting. However, the District has not designated an individual to review and approve the report prior to submission to ensure there was not an error during the compilation and preparation procedure. Effect: The District filed incorrect meal reporting during the year and received the incorrect funding amount. Repeat Finding: No Recommendation: We recommend that the District review its internal controls and designate an individual other than the preparer to review and approve any grant claims.
Child Nutrition Cluster Suspension and Debarment Federal Agency: U.S. Department of Agriculture Federal Program Name: School Breakfast Program, National School Lunch Program Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: WI Department of Public Instruction Pass-Through Number(s): 2022-433647-DPI-SB-SEVERE-546, 2022-433647-DPI-NDL-547 Award Period: 7/1/2021 ? 6/30/2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Nonfederal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. Condition: The District did not maintain documentation that a search for suspension and debarment was performed for select vendors within the food service program. Questioned costs: None Context: Of the one vendor in excess of the $25,000 threshold, none of them had a review of suspension and debarment over procurement. Cause: The District did not have a procedure in place to perform a search for suspension and department associated for vendors with cumulative procurement transactions in excess of the $25,000 threshold. Effect: Certain vendors could be used that are considered suspended or debarred by the federal government resulting in noncompliance. Repeat Finding: No Recommendation: We recommend that the District review its policies over suspension and debarment review to ensure they are maintaining compliance and controls over verifying or contracting with vendors that are allowable Views of responsible officials: Refer to the management?s response per the corrective action plan.
Child Nutrition Cluster Reporting Federal Agency: U.S. Department of Agriculture Federal Program Name: School Breakfast Program, National School Lunch Program Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: WI Department of Public Instruction Pass-Through Number(s): 2022-433647-DPI-SB-SEVERE-546, 2022-433647-DPI-NDL-547 Award Period: 7/1/2021 ? 6/30/2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Grant claims filed by the District to the various granting agencies must be accurate and reconcile to the District?s records. Internal controls should be designed and implemented to prevent and detect errors in the data reported on the grant claims. Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction. Condition: Of the 7 tested monthly claim forms, 5 did not reconcile to the underlying meal count records of the district. There was no review of the reports and claims for reimbursement by someone other than the preparer prior to submission. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned costs: None Context: In the 4 National School Lunch Plan claims tested, the District reported 30,130 meals served, but had records to support 30,101, and of the 3 School Breakfast claims tested, the District reported 8,340 meals served, but had records to support 8,329. Cause: Due to the changes in the school lunch program caused by the pandemic, the District utilized manual count sheets for meals served during the year. One individual was responsible for compiling the count sheets and completing the monthly reporting. However, the District has not designated an individual to review and approve the report prior to submission to ensure there was not an error during the compilation and preparation procedure. Effect: The District filed incorrect meal reporting during the year and received the incorrect funding amount. Repeat Finding: No Recommendation: We recommend that the District review its internal controls and designate an individual other than the preparer to review and approve any grant claims.
Child Nutrition Cluster Suspension and Debarment Federal Agency: U.S. Department of Agriculture Federal Program Name: School Breakfast Program, National School Lunch Program Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: WI Department of Public Instruction Pass-Through Number(s): 2022-433647-DPI-SB-SEVERE-546, 2022-433647-DPI-NDL-547 Award Period: 7/1/2021 ? 6/30/2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Nonfederal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. Condition: The District did not maintain documentation that a search for suspension and debarment was performed for select vendors within the food service program. Questioned costs: None Context: Of the one vendor in excess of the $25,000 threshold, none of them had a review of suspension and debarment over procurement. Cause: The District did not have a procedure in place to perform a search for suspension and department associated for vendors with cumulative procurement transactions in excess of the $25,000 threshold. Effect: Certain vendors could be used that are considered suspended or debarred by the federal government resulting in noncompliance. Repeat Finding: No Recommendation: We recommend that the District review its policies over suspension and debarment review to ensure they are maintaining compliance and controls over verifying or contracting with vendors that are allowable Views of responsible officials: Refer to the management?s response per the corrective action plan.
Child Nutrition Cluster Reporting Federal Agency: U.S. Department of Agriculture Federal Program Name: School Breakfast Program, National School Lunch Program Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: WI Department of Public Instruction Pass-Through Number(s): 2022-433647-DPI-SB-SEVERE-546, 2022-433647-DPI-NDL-547 Award Period: 7/1/2021 ? 6/30/2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Grant claims filed by the District to the various granting agencies must be accurate and reconcile to the District?s records. Internal controls should be designed and implemented to prevent and detect errors in the data reported on the grant claims. Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction. Condition: Of the 7 tested monthly claim forms, 5 did not reconcile to the underlying meal count records of the district. There was no review of the reports and claims for reimbursement by someone other than the preparer prior to submission. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned costs: None Context: In the 4 National School Lunch Plan claims tested, the District reported 30,130 meals served, but had records to support 30,101, and of the 3 School Breakfast claims tested, the District reported 8,340 meals served, but had records to support 8,329. Cause: Due to the changes in the school lunch program caused by the pandemic, the District utilized manual count sheets for meals served during the year. One individual was responsible for compiling the count sheets and completing the monthly reporting. However, the District has not designated an individual to review and approve the report prior to submission to ensure there was not an error during the compilation and preparation procedure. Effect: The District filed incorrect meal reporting during the year and received the incorrect funding amount. Repeat Finding: No Recommendation: We recommend that the District review its internal controls and designate an individual other than the preparer to review and approve any grant claims.
Child Nutrition Cluster Suspension and Debarment Federal Agency: U.S. Department of Agriculture Federal Program Name: School Breakfast Program, National School Lunch Program Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: WI Department of Public Instruction Pass-Through Number(s): 2022-433647-DPI-SB-SEVERE-546, 2022-433647-DPI-NDL-547 Award Period: 7/1/2021 ? 6/30/2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Nonfederal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. Condition: The District did not maintain documentation that a search for suspension and debarment was performed for select vendors within the food service program. Questioned costs: None Context: Of the one vendor in excess of the $25,000 threshold, none of them had a review of suspension and debarment over procurement. Cause: The District did not have a procedure in place to perform a search for suspension and department associated for vendors with cumulative procurement transactions in excess of the $25,000 threshold. Effect: Certain vendors could be used that are considered suspended or debarred by the federal government resulting in noncompliance. Repeat Finding: No Recommendation: We recommend that the District review its policies over suspension and debarment review to ensure they are maintaining compliance and controls over verifying or contracting with vendors that are allowable Views of responsible officials: Refer to the management?s response per the corrective action plan.