Audit 374419

Reference Number: 2025-004 Program Name: Child Nutrition Cluster Description: Procurement Criteria Per 2 CFR 200.213 and 2 CFR Part 180, subpart C, when federal funds are used for contracts exceeding $25,000, the non-Federal entity must verify that vendors are not suspended or debarred by obtaining a certification, adding appropriate contract language, or checking SAM.gov. DPI School Nutrition Program procurement requirements incorporate these Uniform Guidance rules for all applicable food service procurements. Condition The District participates in a cooperative, which conducts bidding and procurement activities for food service vendors on behalf of its member districts. For one required vendor under the cooperative’s awarded contracts, the procurement agent did not obtain or document the required Suspension and Debarment verification. As a result, the District did not have evidence that the vendor had been checked against the federal suspension and debarment list prior to purchases made during the audit period. The District relies on its procurement agent for School Nutrition Program purchases and does not independently select or negotiate with vendors awarded through the cooperative. The missing documentation was related to the procurement agent’s procedures rather than the District’s internal processes. Cause The District did not perform or retain the required Suspension and Debarment verification for this vendor as part of its procurement documentation. Effect The District lacked required evidence supporting that federal Child Nutrition Program funds were not expended with a vendor that had been suspended or debarred. Questioned Costs None. There is no indication that the vendor was suspended or debarred. Recommendation We recommend the District communicate this issue to their procurement agent and request that the cooperative enhance its procurement procedures to ensure Suspension and Debarment verification is obtained and retained for all awarded vendors. The District should also obtain supplemental verification if documentation is not available from the procurement agent prior to making purchases with federal funds. Views of Responsible Officials and Corrective Action See Corrective Action Plan.