UNITED STATES DEPARTMENT OF AGRICULTURE
Significant Deficiency in Internal Control over Compliance
2023-001 Child Nutrition Cluster; ALN # 10.555
Award Period: July 1, 2022 – June 30, 2023
Compliance Requirement: Suspension and Debarment
Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Title 2 Part 200.214 states
that nonfederal entities are subject to the nonprocurement debarment and suspension regulations
implementing Executive Orders 12549 and 12689, 2 CFR part 180. These regulations restrict awards,
subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded
from or ineligible for participation in Federal assistance programs or activities.
Condition and Context: For two (2) of five vendors in our audit sample, documentation provided did not
support that the City’s verifications of vendor status was performed timely for the period under audit.
Questioned Costs: None. The vendors were not suspended or debarred.
Cause: Procedures were not in place to verify vendors’ status timely for all vendors.
Effect: While this did not occur in the instances identified in this finding, lack of timely verification of
vendors’ debarment or suspension status could cause federal grant funds to be expended with vendors
that are excluded from participation in Federal assistance programs or activities.
Repeat Finding: No.
Recommendation: We recommend procedures be strengthened to timely document the verification
that all vendors are not suspended or debarred from participation in Federal assistance programs or
activities.
Views of Responsible Officials: Management agrees with the finding.
UNITED STATES DEPARTMENT OF AGRICULTURE
Significant Deficiency in Internal Control over Compliance
2023-001 Child Nutrition Cluster; ALN # 10.555
Award Period: July 1, 2022 – June 30, 2023
Compliance Requirement: Suspension and Debarment
Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Title 2 Part 200.214 states
that nonfederal entities are subject to the nonprocurement debarment and suspension regulations
implementing Executive Orders 12549 and 12689, 2 CFR part 180. These regulations restrict awards,
subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded
from or ineligible for participation in Federal assistance programs or activities.
Condition and Context: For two (2) of five vendors in our audit sample, documentation provided did not
support that the City’s verifications of vendor status was performed timely for the period under audit.
Questioned Costs: None. The vendors were not suspended or debarred.
Cause: Procedures were not in place to verify vendors’ status timely for all vendors.
Effect: While this did not occur in the instances identified in this finding, lack of timely verification of
vendors’ debarment or suspension status could cause federal grant funds to be expended with vendors
that are excluded from participation in Federal assistance programs or activities.
Repeat Finding: No.
Recommendation: We recommend procedures be strengthened to timely document the verification
that all vendors are not suspended or debarred from participation in Federal assistance programs or
activities.
Views of Responsible Officials: Management agrees with the finding.
UNITED STATES DEPARTMENT OF HEALTH AND HUMAN SERVICES
Significant Deficiency in Internal Control over Compliance and Other Matter
2023-002 Head Start Program; ALN # 93.600
Award Period: July 1, 2022 – June 30, 2023
Compliance Requirement: Reporting
Criteria or Specific Requirement: The SF-429 report is a required annual report.
Condition and Context: The SF-429 for the period under audit had not been filed at the time of our
audit.
Questioned Costs: None.
Cause: Procedures were not in place to file the report timely.
Effect: Noncompliance with reporting requirements.
Repeat Finding: No.
Recommendation: We recommend procedures be implemented to file all required reports timely.
Views of Responsible Officials: Management agrees with the finding.
UNITED STATES DEPARTMENT OF AGRICULTURE
Significant Deficiency in Internal Control over Compliance
2023-001 Child Nutrition Cluster; ALN # 10.555
Award Period: July 1, 2022 – June 30, 2023
Compliance Requirement: Suspension and Debarment
Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Title 2 Part 200.214 states
that nonfederal entities are subject to the nonprocurement debarment and suspension regulations
implementing Executive Orders 12549 and 12689, 2 CFR part 180. These regulations restrict awards,
subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded
from or ineligible for participation in Federal assistance programs or activities.
Condition and Context: For two (2) of five vendors in our audit sample, documentation provided did not
support that the City’s verifications of vendor status was performed timely for the period under audit.
Questioned Costs: None. The vendors were not suspended or debarred.
Cause: Procedures were not in place to verify vendors’ status timely for all vendors.
Effect: While this did not occur in the instances identified in this finding, lack of timely verification of
vendors’ debarment or suspension status could cause federal grant funds to be expended with vendors
that are excluded from participation in Federal assistance programs or activities.
Repeat Finding: No.
Recommendation: We recommend procedures be strengthened to timely document the verification
that all vendors are not suspended or debarred from participation in Federal assistance programs or
activities.
Views of Responsible Officials: Management agrees with the finding.
UNITED STATES DEPARTMENT OF AGRICULTURE
Significant Deficiency in Internal Control over Compliance
2023-001 Child Nutrition Cluster; ALN # 10.555
Award Period: July 1, 2022 – June 30, 2023
Compliance Requirement: Suspension and Debarment
Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Title 2 Part 200.214 states
that nonfederal entities are subject to the nonprocurement debarment and suspension regulations
implementing Executive Orders 12549 and 12689, 2 CFR part 180. These regulations restrict awards,
subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded
from or ineligible for participation in Federal assistance programs or activities.
Condition and Context: For two (2) of five vendors in our audit sample, documentation provided did not
support that the City’s verifications of vendor status was performed timely for the period under audit.
Questioned Costs: None. The vendors were not suspended or debarred.
Cause: Procedures were not in place to verify vendors’ status timely for all vendors.
Effect: While this did not occur in the instances identified in this finding, lack of timely verification of
vendors’ debarment or suspension status could cause federal grant funds to be expended with vendors
that are excluded from participation in Federal assistance programs or activities.
Repeat Finding: No.
Recommendation: We recommend procedures be strengthened to timely document the verification
that all vendors are not suspended or debarred from participation in Federal assistance programs or
activities.
Views of Responsible Officials: Management agrees with the finding.
UNITED STATES DEPARTMENT OF HEALTH AND HUMAN SERVICES
Significant Deficiency in Internal Control over Compliance and Other Matter
2023-002 Head Start Program; ALN # 93.600
Award Period: July 1, 2022 – June 30, 2023
Compliance Requirement: Reporting
Criteria or Specific Requirement: The SF-429 report is a required annual report.
Condition and Context: The SF-429 for the period under audit had not been filed at the time of our
audit.
Questioned Costs: None.
Cause: Procedures were not in place to file the report timely.
Effect: Noncompliance with reporting requirements.
Repeat Finding: No.
Recommendation: We recommend procedures be implemented to file all required reports timely.
Views of Responsible Officials: Management agrees with the finding.