Audit 56712

FY End
2022-06-30
Total Expended
$1.89M
Findings
12
Programs
14
Year: 2022 Accepted: 2023-02-13

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
61328 2022-002 Significant Deficiency Yes I
61329 2022-002 Significant Deficiency Yes I
61330 2022-002 Significant Deficiency Yes I
61331 2022-002 Significant Deficiency Yes I
61332 2022-002 Significant Deficiency Yes I
61333 2022-002 Significant Deficiency Yes I
637770 2022-002 Significant Deficiency Yes I
637771 2022-002 Significant Deficiency Yes I
637772 2022-002 Significant Deficiency Yes I
637773 2022-002 Significant Deficiency Yes I
637774 2022-002 Significant Deficiency Yes I
637775 2022-002 Significant Deficiency Yes I

Contacts

Name Title Type
VARFDMP7SHG6 Scott Petrie Auditee
3095822238 Jason Hohulin, CPA Auditor
No contacts on file

Notes to SEFA

Title: Note 3: Summary of Significant Accounting Policies Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Mercer County School District No. 404 (the District) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is 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). Because the Schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position or changes in net position of the District. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Expenditures reported on the schedule of expenditures of federal awards are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Note 4: Non-Cash Assistance Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Mercer County School District No. 404 (the District) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is 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). Because the Schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position or changes in net position of the District. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Non-cash assistance is reported in the schedule of federal awards at the fair market value of the nonmonetary assistance received and disbursed as follows. The District received nonmonetary assistance under Assistance Listing number 10.555 as noted in the accompanying schedule of expenditures of federal awards.
Title: Note 5: Other Information Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Mercer County School District No. 404 (the District) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is 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). Because the Schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position or changes in net position of the District. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. No federal funds were used to purchase insurance coverage during the fiscal year ended June 30, 2022. There were no loans or loan guarantees outstanding as of June 30, 2022. The District had no federal grants which required matching federal expenditures.

Finding Details

Federal Program Name and Year: Child Nutrition Cluster - 2022 Project No.: 21 & 22-4210, 4220, 4225 AL No.: 10.553, 10.555, 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S. Department of Education Criteria or specific requirement (including statutory, regulatory, or other citation): The Code of Federal Regulations (CFR) Title 2, part 180.220 states that non-Federal entities are prohibited from contracting with or making sub-awards under covered transactions to parties that are suspended or debarred. Condition: The District did not obtain debarment certification or document their vendor search in the System for Award Management website for vendors contracted in excess of $25,000 related to the grant program. Upon further review, it was determined that the vendors were not suspended or debarred. Questioned Costs: None Context: The District did not document their verification that selected vendors were not suspended or debarred. Effect: Noncompliance with the federal award program's suspension and debarment compliance requirements could occur and not be detected and corrected timely. Cause: Written procedures are not in place to verify if vendors contracted in excess of $25,000 related to the Child Nutrition Cluster program are not suspended, debarred, or otherwise excluded from doing business. Recommendation: Procedures need to be implemented to ensure all vendors contracted with have not been suspended or debarred or otherwise excluded from doing business, prior to procuring their services. Management's response: The District did verify vendors on the System for Award Management website, but lack written documentation. In the future, ISBE Form 85-34 will be completed in all future bid packets.
Federal Program Name and Year: Child Nutrition Cluster - 2022 Project No.: 21 & 22-4210, 4220, 4225 AL No.: 10.553, 10.555, 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S. Department of Education Criteria or specific requirement (including statutory, regulatory, or other citation): The Code of Federal Regulations (CFR) Title 2, part 180.220 states that non-Federal entities are prohibited from contracting with or making sub-awards under covered transactions to parties that are suspended or debarred. Condition: The District did not obtain debarment certification or document their vendor search in the System for Award Management website for vendors contracted in excess of $25,000 related to the grant program. Upon further review, it was determined that the vendors were not suspended or debarred. Questioned Costs: None Context: The District did not document their verification that selected vendors were not suspended or debarred. Effect: Noncompliance with the federal award program's suspension and debarment compliance requirements could occur and not be detected and corrected timely. Cause: Written procedures are not in place to verify if vendors contracted in excess of $25,000 related to the Child Nutrition Cluster program are not suspended, debarred, or otherwise excluded from doing business. Recommendation: Procedures need to be implemented to ensure all vendors contracted with have not been suspended or debarred or otherwise excluded from doing business, prior to procuring their services. Management's response: The District did verify vendors on the System for Award Management website, but lack written documentation. In the future, ISBE Form 85-34 will be completed in all future bid packets.
Federal Program Name and Year: Child Nutrition Cluster - 2022 Project No.: 21 & 22-4210, 4220, 4225 AL No.: 10.553, 10.555, 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S. Department of Education Criteria or specific requirement (including statutory, regulatory, or other citation): The Code of Federal Regulations (CFR) Title 2, part 180.220 states that non-Federal entities are prohibited from contracting with or making sub-awards under covered transactions to parties that are suspended or debarred. Condition: The District did not obtain debarment certification or document their vendor search in the System for Award Management website for vendors contracted in excess of $25,000 related to the grant program. Upon further review, it was determined that the vendors were not suspended or debarred. Questioned Costs: None Context: The District did not document their verification that selected vendors were not suspended or debarred. Effect: Noncompliance with the federal award program's suspension and debarment compliance requirements could occur and not be detected and corrected timely. Cause: Written procedures are not in place to verify if vendors contracted in excess of $25,000 related to the Child Nutrition Cluster program are not suspended, debarred, or otherwise excluded from doing business. Recommendation: Procedures need to be implemented to ensure all vendors contracted with have not been suspended or debarred or otherwise excluded from doing business, prior to procuring their services. Management's response: The District did verify vendors on the System for Award Management website, but lack written documentation. In the future, ISBE Form 85-34 will be completed in all future bid packets.
Federal Program Name and Year: Child Nutrition Cluster - 2022 Project No.: 21 & 22-4210, 4220, 4225 AL No.: 10.553, 10.555, 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S. Department of Education Criteria or specific requirement (including statutory, regulatory, or other citation): The Code of Federal Regulations (CFR) Title 2, part 180.220 states that non-Federal entities are prohibited from contracting with or making sub-awards under covered transactions to parties that are suspended or debarred. Condition: The District did not obtain debarment certification or document their vendor search in the System for Award Management website for vendors contracted in excess of $25,000 related to the grant program. Upon further review, it was determined that the vendors were not suspended or debarred. Questioned Costs: None Context: The District did not document their verification that selected vendors were not suspended or debarred. Effect: Noncompliance with the federal award program's suspension and debarment compliance requirements could occur and not be detected and corrected timely. Cause: Written procedures are not in place to verify if vendors contracted in excess of $25,000 related to the Child Nutrition Cluster program are not suspended, debarred, or otherwise excluded from doing business. Recommendation: Procedures need to be implemented to ensure all vendors contracted with have not been suspended or debarred or otherwise excluded from doing business, prior to procuring their services. Management's response: The District did verify vendors on the System for Award Management website, but lack written documentation. In the future, ISBE Form 85-34 will be completed in all future bid packets.
Federal Program Name and Year: Child Nutrition Cluster - 2022 Project No.: 21 & 22-4210, 4220, 4225 AL No.: 10.553, 10.555, 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S. Department of Education Criteria or specific requirement (including statutory, regulatory, or other citation): The Code of Federal Regulations (CFR) Title 2, part 180.220 states that non-Federal entities are prohibited from contracting with or making sub-awards under covered transactions to parties that are suspended or debarred. Condition: The District did not obtain debarment certification or document their vendor search in the System for Award Management website for vendors contracted in excess of $25,000 related to the grant program. Upon further review, it was determined that the vendors were not suspended or debarred. Questioned Costs: None Context: The District did not document their verification that selected vendors were not suspended or debarred. Effect: Noncompliance with the federal award program's suspension and debarment compliance requirements could occur and not be detected and corrected timely. Cause: Written procedures are not in place to verify if vendors contracted in excess of $25,000 related to the Child Nutrition Cluster program are not suspended, debarred, or otherwise excluded from doing business. Recommendation: Procedures need to be implemented to ensure all vendors contracted with have not been suspended or debarred or otherwise excluded from doing business, prior to procuring their services. Management's response: The District did verify vendors on the System for Award Management website, but lack written documentation. In the future, ISBE Form 85-34 will be completed in all future bid packets.
Federal Program Name and Year: Child Nutrition Cluster - 2022 Project No.: 21 & 22-4210, 4220, 4225 AL No.: 10.553, 10.555, 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S. Department of Education Criteria or specific requirement (including statutory, regulatory, or other citation): The Code of Federal Regulations (CFR) Title 2, part 180.220 states that non-Federal entities are prohibited from contracting with or making sub-awards under covered transactions to parties that are suspended or debarred. Condition: The District did not obtain debarment certification or document their vendor search in the System for Award Management website for vendors contracted in excess of $25,000 related to the grant program. Upon further review, it was determined that the vendors were not suspended or debarred. Questioned Costs: None Context: The District did not document their verification that selected vendors were not suspended or debarred. Effect: Noncompliance with the federal award program's suspension and debarment compliance requirements could occur and not be detected and corrected timely. Cause: Written procedures are not in place to verify if vendors contracted in excess of $25,000 related to the Child Nutrition Cluster program are not suspended, debarred, or otherwise excluded from doing business. Recommendation: Procedures need to be implemented to ensure all vendors contracted with have not been suspended or debarred or otherwise excluded from doing business, prior to procuring their services. Management's response: The District did verify vendors on the System for Award Management website, but lack written documentation. In the future, ISBE Form 85-34 will be completed in all future bid packets.
Federal Program Name and Year: Child Nutrition Cluster - 2022 Project No.: 21 & 22-4210, 4220, 4225 AL No.: 10.553, 10.555, 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S. Department of Education Criteria or specific requirement (including statutory, regulatory, or other citation): The Code of Federal Regulations (CFR) Title 2, part 180.220 states that non-Federal entities are prohibited from contracting with or making sub-awards under covered transactions to parties that are suspended or debarred. Condition: The District did not obtain debarment certification or document their vendor search in the System for Award Management website for vendors contracted in excess of $25,000 related to the grant program. Upon further review, it was determined that the vendors were not suspended or debarred. Questioned Costs: None Context: The District did not document their verification that selected vendors were not suspended or debarred. Effect: Noncompliance with the federal award program's suspension and debarment compliance requirements could occur and not be detected and corrected timely. Cause: Written procedures are not in place to verify if vendors contracted in excess of $25,000 related to the Child Nutrition Cluster program are not suspended, debarred, or otherwise excluded from doing business. Recommendation: Procedures need to be implemented to ensure all vendors contracted with have not been suspended or debarred or otherwise excluded from doing business, prior to procuring their services. Management's response: The District did verify vendors on the System for Award Management website, but lack written documentation. In the future, ISBE Form 85-34 will be completed in all future bid packets.
Federal Program Name and Year: Child Nutrition Cluster - 2022 Project No.: 21 & 22-4210, 4220, 4225 AL No.: 10.553, 10.555, 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S. Department of Education Criteria or specific requirement (including statutory, regulatory, or other citation): The Code of Federal Regulations (CFR) Title 2, part 180.220 states that non-Federal entities are prohibited from contracting with or making sub-awards under covered transactions to parties that are suspended or debarred. Condition: The District did not obtain debarment certification or document their vendor search in the System for Award Management website for vendors contracted in excess of $25,000 related to the grant program. Upon further review, it was determined that the vendors were not suspended or debarred. Questioned Costs: None Context: The District did not document their verification that selected vendors were not suspended or debarred. Effect: Noncompliance with the federal award program's suspension and debarment compliance requirements could occur and not be detected and corrected timely. Cause: Written procedures are not in place to verify if vendors contracted in excess of $25,000 related to the Child Nutrition Cluster program are not suspended, debarred, or otherwise excluded from doing business. Recommendation: Procedures need to be implemented to ensure all vendors contracted with have not been suspended or debarred or otherwise excluded from doing business, prior to procuring their services. Management's response: The District did verify vendors on the System for Award Management website, but lack written documentation. In the future, ISBE Form 85-34 will be completed in all future bid packets.
Federal Program Name and Year: Child Nutrition Cluster - 2022 Project No.: 21 & 22-4210, 4220, 4225 AL No.: 10.553, 10.555, 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S. Department of Education Criteria or specific requirement (including statutory, regulatory, or other citation): The Code of Federal Regulations (CFR) Title 2, part 180.220 states that non-Federal entities are prohibited from contracting with or making sub-awards under covered transactions to parties that are suspended or debarred. Condition: The District did not obtain debarment certification or document their vendor search in the System for Award Management website for vendors contracted in excess of $25,000 related to the grant program. Upon further review, it was determined that the vendors were not suspended or debarred. Questioned Costs: None Context: The District did not document their verification that selected vendors were not suspended or debarred. Effect: Noncompliance with the federal award program's suspension and debarment compliance requirements could occur and not be detected and corrected timely. Cause: Written procedures are not in place to verify if vendors contracted in excess of $25,000 related to the Child Nutrition Cluster program are not suspended, debarred, or otherwise excluded from doing business. Recommendation: Procedures need to be implemented to ensure all vendors contracted with have not been suspended or debarred or otherwise excluded from doing business, prior to procuring their services. Management's response: The District did verify vendors on the System for Award Management website, but lack written documentation. In the future, ISBE Form 85-34 will be completed in all future bid packets.
Federal Program Name and Year: Child Nutrition Cluster - 2022 Project No.: 21 & 22-4210, 4220, 4225 AL No.: 10.553, 10.555, 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S. Department of Education Criteria or specific requirement (including statutory, regulatory, or other citation): The Code of Federal Regulations (CFR) Title 2, part 180.220 states that non-Federal entities are prohibited from contracting with or making sub-awards under covered transactions to parties that are suspended or debarred. Condition: The District did not obtain debarment certification or document their vendor search in the System for Award Management website for vendors contracted in excess of $25,000 related to the grant program. Upon further review, it was determined that the vendors were not suspended or debarred. Questioned Costs: None Context: The District did not document their verification that selected vendors were not suspended or debarred. Effect: Noncompliance with the federal award program's suspension and debarment compliance requirements could occur and not be detected and corrected timely. Cause: Written procedures are not in place to verify if vendors contracted in excess of $25,000 related to the Child Nutrition Cluster program are not suspended, debarred, or otherwise excluded from doing business. Recommendation: Procedures need to be implemented to ensure all vendors contracted with have not been suspended or debarred or otherwise excluded from doing business, prior to procuring their services. Management's response: The District did verify vendors on the System for Award Management website, but lack written documentation. In the future, ISBE Form 85-34 will be completed in all future bid packets.
Federal Program Name and Year: Child Nutrition Cluster - 2022 Project No.: 21 & 22-4210, 4220, 4225 AL No.: 10.553, 10.555, 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S. Department of Education Criteria or specific requirement (including statutory, regulatory, or other citation): The Code of Federal Regulations (CFR) Title 2, part 180.220 states that non-Federal entities are prohibited from contracting with or making sub-awards under covered transactions to parties that are suspended or debarred. Condition: The District did not obtain debarment certification or document their vendor search in the System for Award Management website for vendors contracted in excess of $25,000 related to the grant program. Upon further review, it was determined that the vendors were not suspended or debarred. Questioned Costs: None Context: The District did not document their verification that selected vendors were not suspended or debarred. Effect: Noncompliance with the federal award program's suspension and debarment compliance requirements could occur and not be detected and corrected timely. Cause: Written procedures are not in place to verify if vendors contracted in excess of $25,000 related to the Child Nutrition Cluster program are not suspended, debarred, or otherwise excluded from doing business. Recommendation: Procedures need to be implemented to ensure all vendors contracted with have not been suspended or debarred or otherwise excluded from doing business, prior to procuring their services. Management's response: The District did verify vendors on the System for Award Management website, but lack written documentation. In the future, ISBE Form 85-34 will be completed in all future bid packets.
Federal Program Name and Year: Child Nutrition Cluster - 2022 Project No.: 21 & 22-4210, 4220, 4225 AL No.: 10.553, 10.555, 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S. Department of Education Criteria or specific requirement (including statutory, regulatory, or other citation): The Code of Federal Regulations (CFR) Title 2, part 180.220 states that non-Federal entities are prohibited from contracting with or making sub-awards under covered transactions to parties that are suspended or debarred. Condition: The District did not obtain debarment certification or document their vendor search in the System for Award Management website for vendors contracted in excess of $25,000 related to the grant program. Upon further review, it was determined that the vendors were not suspended or debarred. Questioned Costs: None Context: The District did not document their verification that selected vendors were not suspended or debarred. Effect: Noncompliance with the federal award program's suspension and debarment compliance requirements could occur and not be detected and corrected timely. Cause: Written procedures are not in place to verify if vendors contracted in excess of $25,000 related to the Child Nutrition Cluster program are not suspended, debarred, or otherwise excluded from doing business. Recommendation: Procedures need to be implemented to ensure all vendors contracted with have not been suspended or debarred or otherwise excluded from doing business, prior to procuring their services. Management's response: The District did verify vendors on the System for Award Management website, but lack written documentation. In the future, ISBE Form 85-34 will be completed in all future bid packets.