Audit 6709

FY End
2023-06-30
Total Expended
$2.26M
Findings
18
Programs
13
Organization: South Lake Schools (MI)
Year: 2023 Accepted: 2023-12-14

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
4314 2023-002 Significant Deficiency - I
4315 2023-002 Significant Deficiency - I
4316 2023-002 Significant Deficiency - I
4317 2023-002 Significant Deficiency - I
4318 2023-002 Significant Deficiency - I
4319 2023-002 Significant Deficiency - I
4320 2023-002 Significant Deficiency - I
4321 2023-002 Significant Deficiency - I
4322 2023-002 Significant Deficiency - I
580756 2023-002 Significant Deficiency - I
580757 2023-002 Significant Deficiency - I
580758 2023-002 Significant Deficiency - I
580759 2023-002 Significant Deficiency - I
580760 2023-002 Significant Deficiency - I
580761 2023-002 Significant Deficiency - I
580762 2023-002 Significant Deficiency - I
580763 2023-002 Significant Deficiency - I
580764 2023-002 Significant Deficiency - I

Contacts

Name Title Type
S6J3EU7CN3Y5 Frank Thomas Auditee
5864351661 Kim Lindsay, Cpa, Cgma Auditor
No contacts on file

Notes to SEFA

Title: RECONCILIATION TO THE BASIC FINANCIAL STATEMENTS Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of South Lake Schools (the “District”) under programs of the federal government for the year ended June 30, 2023. 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, changes in net position or cash flows of the District. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting, which is described in Note 1 to the District's financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance or other applicable guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. Cash received is recorded on the cash basis; expenditures are recorded on the modified accrual basis of accounting. Revenues are recognized when the qualifying expenditures have been incurred and all grant requirements have been met. The Schedule has been arranged to provide information on both actual cash received and the revenue recognized. Accordingly, the effects of accruals of accounts receivable, unearned revenue and accounts payable items at both the beginning and end of the fiscal year have been reported. Expenditures are in agreement with amounts reported in the financial statements and the financial reports. The amounts reported on the Grant Auditor Report reconcile with this Schedule. De Minimis Rate Used: N Rate Explanation: For purposes of charging indirect costs to federal awards, the District has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance. SEE NOTES TO SEFA FOR TABLE

Finding Details

2023-002 – Suspension and Debarment Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Controls over Compliance (Procurement, Suspension and Debarment). Program. Child Nutrition Cluster; U.S. Department of Agriculture; Assistance Listing Numbers 10.553, 10.555 and 10.559; Passed through Michigan Department of Education (MDE); All project numbers. Criteria. Recipients of federal awards are required to follow their own internal purchasing policies, as well as complying with purchasing standards set forth in the Uniform Guidance. Part of that guidance requires an entity to check if a vendor is suspended or debarred before entering into a contract. Condition. The District did not do checks on Sam.gov for one of the three vendors over the limit for 2022-23. The other two selected were bid by MDE or the Macomb Intermediate School District. Cause. Despite the District having policies in place, this condition was the result of not applying these policies consistently throughout the year. Effect. The District is exposed to an increased risk that future noncompliance could occur and not be prevented or detected by the District's internal controls. Questioned Costs. No costs were required to be questioned as a result of this finding inasmuch as our testing did not reveal any unallowed costs, and the vendors in question were not actually suspended or debarred. Recommendation. We recommend that the District consistently apply their documented procurement policy and implement procedures to provide reasonable assurance that the District does not do business with vendors that are under federal exclusions. View of Responsible Officials. The District will develop a vendor approval process that includes verification through Sam.gov. Responsible Official. Frank Thomas, Director of Business and Human Resources, and Margaret Sawyer, Accountant Anticipated Completion Date. Immediately
2023-002 – Suspension and Debarment Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Controls over Compliance (Procurement, Suspension and Debarment). Program. Child Nutrition Cluster; U.S. Department of Agriculture; Assistance Listing Numbers 10.553, 10.555 and 10.559; Passed through Michigan Department of Education (MDE); All project numbers. Criteria. Recipients of federal awards are required to follow their own internal purchasing policies, as well as complying with purchasing standards set forth in the Uniform Guidance. Part of that guidance requires an entity to check if a vendor is suspended or debarred before entering into a contract. Condition. The District did not do checks on Sam.gov for one of the three vendors over the limit for 2022-23. The other two selected were bid by MDE or the Macomb Intermediate School District. Cause. Despite the District having policies in place, this condition was the result of not applying these policies consistently throughout the year. Effect. The District is exposed to an increased risk that future noncompliance could occur and not be prevented or detected by the District's internal controls. Questioned Costs. No costs were required to be questioned as a result of this finding inasmuch as our testing did not reveal any unallowed costs, and the vendors in question were not actually suspended or debarred. Recommendation. We recommend that the District consistently apply their documented procurement policy and implement procedures to provide reasonable assurance that the District does not do business with vendors that are under federal exclusions. View of Responsible Officials. The District will develop a vendor approval process that includes verification through Sam.gov. Responsible Official. Frank Thomas, Director of Business and Human Resources, and Margaret Sawyer, Accountant Anticipated Completion Date. Immediately
2023-002 – Suspension and Debarment Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Controls over Compliance (Procurement, Suspension and Debarment). Program. Child Nutrition Cluster; U.S. Department of Agriculture; Assistance Listing Numbers 10.553, 10.555 and 10.559; Passed through Michigan Department of Education (MDE); All project numbers. Criteria. Recipients of federal awards are required to follow their own internal purchasing policies, as well as complying with purchasing standards set forth in the Uniform Guidance. Part of that guidance requires an entity to check if a vendor is suspended or debarred before entering into a contract. Condition. The District did not do checks on Sam.gov for one of the three vendors over the limit for 2022-23. The other two selected were bid by MDE or the Macomb Intermediate School District. Cause. Despite the District having policies in place, this condition was the result of not applying these policies consistently throughout the year. Effect. The District is exposed to an increased risk that future noncompliance could occur and not be prevented or detected by the District's internal controls. Questioned Costs. No costs were required to be questioned as a result of this finding inasmuch as our testing did not reveal any unallowed costs, and the vendors in question were not actually suspended or debarred. Recommendation. We recommend that the District consistently apply their documented procurement policy and implement procedures to provide reasonable assurance that the District does not do business with vendors that are under federal exclusions. View of Responsible Officials. The District will develop a vendor approval process that includes verification through Sam.gov. Responsible Official. Frank Thomas, Director of Business and Human Resources, and Margaret Sawyer, Accountant Anticipated Completion Date. Immediately
2023-002 – Suspension and Debarment Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Controls over Compliance (Procurement, Suspension and Debarment). Program. Child Nutrition Cluster; U.S. Department of Agriculture; Assistance Listing Numbers 10.553, 10.555 and 10.559; Passed through Michigan Department of Education (MDE); All project numbers. Criteria. Recipients of federal awards are required to follow their own internal purchasing policies, as well as complying with purchasing standards set forth in the Uniform Guidance. Part of that guidance requires an entity to check if a vendor is suspended or debarred before entering into a contract. Condition. The District did not do checks on Sam.gov for one of the three vendors over the limit for 2022-23. The other two selected were bid by MDE or the Macomb Intermediate School District. Cause. Despite the District having policies in place, this condition was the result of not applying these policies consistently throughout the year. Effect. The District is exposed to an increased risk that future noncompliance could occur and not be prevented or detected by the District's internal controls. Questioned Costs. No costs were required to be questioned as a result of this finding inasmuch as our testing did not reveal any unallowed costs, and the vendors in question were not actually suspended or debarred. Recommendation. We recommend that the District consistently apply their documented procurement policy and implement procedures to provide reasonable assurance that the District does not do business with vendors that are under federal exclusions. View of Responsible Officials. The District will develop a vendor approval process that includes verification through Sam.gov. Responsible Official. Frank Thomas, Director of Business and Human Resources, and Margaret Sawyer, Accountant Anticipated Completion Date. Immediately
2023-002 – Suspension and Debarment Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Controls over Compliance (Procurement, Suspension and Debarment). Program. Child Nutrition Cluster; U.S. Department of Agriculture; Assistance Listing Numbers 10.553, 10.555 and 10.559; Passed through Michigan Department of Education (MDE); All project numbers. Criteria. Recipients of federal awards are required to follow their own internal purchasing policies, as well as complying with purchasing standards set forth in the Uniform Guidance. Part of that guidance requires an entity to check if a vendor is suspended or debarred before entering into a contract. Condition. The District did not do checks on Sam.gov for one of the three vendors over the limit for 2022-23. The other two selected were bid by MDE or the Macomb Intermediate School District. Cause. Despite the District having policies in place, this condition was the result of not applying these policies consistently throughout the year. Effect. The District is exposed to an increased risk that future noncompliance could occur and not be prevented or detected by the District's internal controls. Questioned Costs. No costs were required to be questioned as a result of this finding inasmuch as our testing did not reveal any unallowed costs, and the vendors in question were not actually suspended or debarred. Recommendation. We recommend that the District consistently apply their documented procurement policy and implement procedures to provide reasonable assurance that the District does not do business with vendors that are under federal exclusions. View of Responsible Officials. The District will develop a vendor approval process that includes verification through Sam.gov. Responsible Official. Frank Thomas, Director of Business and Human Resources, and Margaret Sawyer, Accountant Anticipated Completion Date. Immediately
2023-002 – Suspension and Debarment Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Controls over Compliance (Procurement, Suspension and Debarment). Program. Child Nutrition Cluster; U.S. Department of Agriculture; Assistance Listing Numbers 10.553, 10.555 and 10.559; Passed through Michigan Department of Education (MDE); All project numbers. Criteria. Recipients of federal awards are required to follow their own internal purchasing policies, as well as complying with purchasing standards set forth in the Uniform Guidance. Part of that guidance requires an entity to check if a vendor is suspended or debarred before entering into a contract. Condition. The District did not do checks on Sam.gov for one of the three vendors over the limit for 2022-23. The other two selected were bid by MDE or the Macomb Intermediate School District. Cause. Despite the District having policies in place, this condition was the result of not applying these policies consistently throughout the year. Effect. The District is exposed to an increased risk that future noncompliance could occur and not be prevented or detected by the District's internal controls. Questioned Costs. No costs were required to be questioned as a result of this finding inasmuch as our testing did not reveal any unallowed costs, and the vendors in question were not actually suspended or debarred. Recommendation. We recommend that the District consistently apply their documented procurement policy and implement procedures to provide reasonable assurance that the District does not do business with vendors that are under federal exclusions. View of Responsible Officials. The District will develop a vendor approval process that includes verification through Sam.gov. Responsible Official. Frank Thomas, Director of Business and Human Resources, and Margaret Sawyer, Accountant Anticipated Completion Date. Immediately
2023-002 – Suspension and Debarment Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Controls over Compliance (Procurement, Suspension and Debarment). Program. Child Nutrition Cluster; U.S. Department of Agriculture; Assistance Listing Numbers 10.553, 10.555 and 10.559; Passed through Michigan Department of Education (MDE); All project numbers. Criteria. Recipients of federal awards are required to follow their own internal purchasing policies, as well as complying with purchasing standards set forth in the Uniform Guidance. Part of that guidance requires an entity to check if a vendor is suspended or debarred before entering into a contract. Condition. The District did not do checks on Sam.gov for one of the three vendors over the limit for 2022-23. The other two selected were bid by MDE or the Macomb Intermediate School District. Cause. Despite the District having policies in place, this condition was the result of not applying these policies consistently throughout the year. Effect. The District is exposed to an increased risk that future noncompliance could occur and not be prevented or detected by the District's internal controls. Questioned Costs. No costs were required to be questioned as a result of this finding inasmuch as our testing did not reveal any unallowed costs, and the vendors in question were not actually suspended or debarred. Recommendation. We recommend that the District consistently apply their documented procurement policy and implement procedures to provide reasonable assurance that the District does not do business with vendors that are under federal exclusions. View of Responsible Officials. The District will develop a vendor approval process that includes verification through Sam.gov. Responsible Official. Frank Thomas, Director of Business and Human Resources, and Margaret Sawyer, Accountant Anticipated Completion Date. Immediately
2023-002 – Suspension and Debarment Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Controls over Compliance (Procurement, Suspension and Debarment). Program. Child Nutrition Cluster; U.S. Department of Agriculture; Assistance Listing Numbers 10.553, 10.555 and 10.559; Passed through Michigan Department of Education (MDE); All project numbers. Criteria. Recipients of federal awards are required to follow their own internal purchasing policies, as well as complying with purchasing standards set forth in the Uniform Guidance. Part of that guidance requires an entity to check if a vendor is suspended or debarred before entering into a contract. Condition. The District did not do checks on Sam.gov for one of the three vendors over the limit for 2022-23. The other two selected were bid by MDE or the Macomb Intermediate School District. Cause. Despite the District having policies in place, this condition was the result of not applying these policies consistently throughout the year. Effect. The District is exposed to an increased risk that future noncompliance could occur and not be prevented or detected by the District's internal controls. Questioned Costs. No costs were required to be questioned as a result of this finding inasmuch as our testing did not reveal any unallowed costs, and the vendors in question were not actually suspended or debarred. Recommendation. We recommend that the District consistently apply their documented procurement policy and implement procedures to provide reasonable assurance that the District does not do business with vendors that are under federal exclusions. View of Responsible Officials. The District will develop a vendor approval process that includes verification through Sam.gov. Responsible Official. Frank Thomas, Director of Business and Human Resources, and Margaret Sawyer, Accountant Anticipated Completion Date. Immediately
2023-002 – Suspension and Debarment Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Controls over Compliance (Procurement, Suspension and Debarment). Program. Child Nutrition Cluster; U.S. Department of Agriculture; Assistance Listing Numbers 10.553, 10.555 and 10.559; Passed through Michigan Department of Education (MDE); All project numbers. Criteria. Recipients of federal awards are required to follow their own internal purchasing policies, as well as complying with purchasing standards set forth in the Uniform Guidance. Part of that guidance requires an entity to check if a vendor is suspended or debarred before entering into a contract. Condition. The District did not do checks on Sam.gov for one of the three vendors over the limit for 2022-23. The other two selected were bid by MDE or the Macomb Intermediate School District. Cause. Despite the District having policies in place, this condition was the result of not applying these policies consistently throughout the year. Effect. The District is exposed to an increased risk that future noncompliance could occur and not be prevented or detected by the District's internal controls. Questioned Costs. No costs were required to be questioned as a result of this finding inasmuch as our testing did not reveal any unallowed costs, and the vendors in question were not actually suspended or debarred. Recommendation. We recommend that the District consistently apply their documented procurement policy and implement procedures to provide reasonable assurance that the District does not do business with vendors that are under federal exclusions. View of Responsible Officials. The District will develop a vendor approval process that includes verification through Sam.gov. Responsible Official. Frank Thomas, Director of Business and Human Resources, and Margaret Sawyer, Accountant Anticipated Completion Date. Immediately
2023-002 – Suspension and Debarment Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Controls over Compliance (Procurement, Suspension and Debarment). Program. Child Nutrition Cluster; U.S. Department of Agriculture; Assistance Listing Numbers 10.553, 10.555 and 10.559; Passed through Michigan Department of Education (MDE); All project numbers. Criteria. Recipients of federal awards are required to follow their own internal purchasing policies, as well as complying with purchasing standards set forth in the Uniform Guidance. Part of that guidance requires an entity to check if a vendor is suspended or debarred before entering into a contract. Condition. The District did not do checks on Sam.gov for one of the three vendors over the limit for 2022-23. The other two selected were bid by MDE or the Macomb Intermediate School District. Cause. Despite the District having policies in place, this condition was the result of not applying these policies consistently throughout the year. Effect. The District is exposed to an increased risk that future noncompliance could occur and not be prevented or detected by the District's internal controls. Questioned Costs. No costs were required to be questioned as a result of this finding inasmuch as our testing did not reveal any unallowed costs, and the vendors in question were not actually suspended or debarred. Recommendation. We recommend that the District consistently apply their documented procurement policy and implement procedures to provide reasonable assurance that the District does not do business with vendors that are under federal exclusions. View of Responsible Officials. The District will develop a vendor approval process that includes verification through Sam.gov. Responsible Official. Frank Thomas, Director of Business and Human Resources, and Margaret Sawyer, Accountant Anticipated Completion Date. Immediately
2023-002 – Suspension and Debarment Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Controls over Compliance (Procurement, Suspension and Debarment). Program. Child Nutrition Cluster; U.S. Department of Agriculture; Assistance Listing Numbers 10.553, 10.555 and 10.559; Passed through Michigan Department of Education (MDE); All project numbers. Criteria. Recipients of federal awards are required to follow their own internal purchasing policies, as well as complying with purchasing standards set forth in the Uniform Guidance. Part of that guidance requires an entity to check if a vendor is suspended or debarred before entering into a contract. Condition. The District did not do checks on Sam.gov for one of the three vendors over the limit for 2022-23. The other two selected were bid by MDE or the Macomb Intermediate School District. Cause. Despite the District having policies in place, this condition was the result of not applying these policies consistently throughout the year. Effect. The District is exposed to an increased risk that future noncompliance could occur and not be prevented or detected by the District's internal controls. Questioned Costs. No costs were required to be questioned as a result of this finding inasmuch as our testing did not reveal any unallowed costs, and the vendors in question were not actually suspended or debarred. Recommendation. We recommend that the District consistently apply their documented procurement policy and implement procedures to provide reasonable assurance that the District does not do business with vendors that are under federal exclusions. View of Responsible Officials. The District will develop a vendor approval process that includes verification through Sam.gov. Responsible Official. Frank Thomas, Director of Business and Human Resources, and Margaret Sawyer, Accountant Anticipated Completion Date. Immediately
2023-002 – Suspension and Debarment Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Controls over Compliance (Procurement, Suspension and Debarment). Program. Child Nutrition Cluster; U.S. Department of Agriculture; Assistance Listing Numbers 10.553, 10.555 and 10.559; Passed through Michigan Department of Education (MDE); All project numbers. Criteria. Recipients of federal awards are required to follow their own internal purchasing policies, as well as complying with purchasing standards set forth in the Uniform Guidance. Part of that guidance requires an entity to check if a vendor is suspended or debarred before entering into a contract. Condition. The District did not do checks on Sam.gov for one of the three vendors over the limit for 2022-23. The other two selected were bid by MDE or the Macomb Intermediate School District. Cause. Despite the District having policies in place, this condition was the result of not applying these policies consistently throughout the year. Effect. The District is exposed to an increased risk that future noncompliance could occur and not be prevented or detected by the District's internal controls. Questioned Costs. No costs were required to be questioned as a result of this finding inasmuch as our testing did not reveal any unallowed costs, and the vendors in question were not actually suspended or debarred. Recommendation. We recommend that the District consistently apply their documented procurement policy and implement procedures to provide reasonable assurance that the District does not do business with vendors that are under federal exclusions. View of Responsible Officials. The District will develop a vendor approval process that includes verification through Sam.gov. Responsible Official. Frank Thomas, Director of Business and Human Resources, and Margaret Sawyer, Accountant Anticipated Completion Date. Immediately
2023-002 – Suspension and Debarment Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Controls over Compliance (Procurement, Suspension and Debarment). Program. Child Nutrition Cluster; U.S. Department of Agriculture; Assistance Listing Numbers 10.553, 10.555 and 10.559; Passed through Michigan Department of Education (MDE); All project numbers. Criteria. Recipients of federal awards are required to follow their own internal purchasing policies, as well as complying with purchasing standards set forth in the Uniform Guidance. Part of that guidance requires an entity to check if a vendor is suspended or debarred before entering into a contract. Condition. The District did not do checks on Sam.gov for one of the three vendors over the limit for 2022-23. The other two selected were bid by MDE or the Macomb Intermediate School District. Cause. Despite the District having policies in place, this condition was the result of not applying these policies consistently throughout the year. Effect. The District is exposed to an increased risk that future noncompliance could occur and not be prevented or detected by the District's internal controls. Questioned Costs. No costs were required to be questioned as a result of this finding inasmuch as our testing did not reveal any unallowed costs, and the vendors in question were not actually suspended or debarred. Recommendation. We recommend that the District consistently apply their documented procurement policy and implement procedures to provide reasonable assurance that the District does not do business with vendors that are under federal exclusions. View of Responsible Officials. The District will develop a vendor approval process that includes verification through Sam.gov. Responsible Official. Frank Thomas, Director of Business and Human Resources, and Margaret Sawyer, Accountant Anticipated Completion Date. Immediately
2023-002 – Suspension and Debarment Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Controls over Compliance (Procurement, Suspension and Debarment). Program. Child Nutrition Cluster; U.S. Department of Agriculture; Assistance Listing Numbers 10.553, 10.555 and 10.559; Passed through Michigan Department of Education (MDE); All project numbers. Criteria. Recipients of federal awards are required to follow their own internal purchasing policies, as well as complying with purchasing standards set forth in the Uniform Guidance. Part of that guidance requires an entity to check if a vendor is suspended or debarred before entering into a contract. Condition. The District did not do checks on Sam.gov for one of the three vendors over the limit for 2022-23. The other two selected were bid by MDE or the Macomb Intermediate School District. Cause. Despite the District having policies in place, this condition was the result of not applying these policies consistently throughout the year. Effect. The District is exposed to an increased risk that future noncompliance could occur and not be prevented or detected by the District's internal controls. Questioned Costs. No costs were required to be questioned as a result of this finding inasmuch as our testing did not reveal any unallowed costs, and the vendors in question were not actually suspended or debarred. Recommendation. We recommend that the District consistently apply their documented procurement policy and implement procedures to provide reasonable assurance that the District does not do business with vendors that are under federal exclusions. View of Responsible Officials. The District will develop a vendor approval process that includes verification through Sam.gov. Responsible Official. Frank Thomas, Director of Business and Human Resources, and Margaret Sawyer, Accountant Anticipated Completion Date. Immediately
2023-002 – Suspension and Debarment Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Controls over Compliance (Procurement, Suspension and Debarment). Program. Child Nutrition Cluster; U.S. Department of Agriculture; Assistance Listing Numbers 10.553, 10.555 and 10.559; Passed through Michigan Department of Education (MDE); All project numbers. Criteria. Recipients of federal awards are required to follow their own internal purchasing policies, as well as complying with purchasing standards set forth in the Uniform Guidance. Part of that guidance requires an entity to check if a vendor is suspended or debarred before entering into a contract. Condition. The District did not do checks on Sam.gov for one of the three vendors over the limit for 2022-23. The other two selected were bid by MDE or the Macomb Intermediate School District. Cause. Despite the District having policies in place, this condition was the result of not applying these policies consistently throughout the year. Effect. The District is exposed to an increased risk that future noncompliance could occur and not be prevented or detected by the District's internal controls. Questioned Costs. No costs were required to be questioned as a result of this finding inasmuch as our testing did not reveal any unallowed costs, and the vendors in question were not actually suspended or debarred. Recommendation. We recommend that the District consistently apply their documented procurement policy and implement procedures to provide reasonable assurance that the District does not do business with vendors that are under federal exclusions. View of Responsible Officials. The District will develop a vendor approval process that includes verification through Sam.gov. Responsible Official. Frank Thomas, Director of Business and Human Resources, and Margaret Sawyer, Accountant Anticipated Completion Date. Immediately
2023-002 – Suspension and Debarment Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Controls over Compliance (Procurement, Suspension and Debarment). Program. Child Nutrition Cluster; U.S. Department of Agriculture; Assistance Listing Numbers 10.553, 10.555 and 10.559; Passed through Michigan Department of Education (MDE); All project numbers. Criteria. Recipients of federal awards are required to follow their own internal purchasing policies, as well as complying with purchasing standards set forth in the Uniform Guidance. Part of that guidance requires an entity to check if a vendor is suspended or debarred before entering into a contract. Condition. The District did not do checks on Sam.gov for one of the three vendors over the limit for 2022-23. The other two selected were bid by MDE or the Macomb Intermediate School District. Cause. Despite the District having policies in place, this condition was the result of not applying these policies consistently throughout the year. Effect. The District is exposed to an increased risk that future noncompliance could occur and not be prevented or detected by the District's internal controls. Questioned Costs. No costs were required to be questioned as a result of this finding inasmuch as our testing did not reveal any unallowed costs, and the vendors in question were not actually suspended or debarred. Recommendation. We recommend that the District consistently apply their documented procurement policy and implement procedures to provide reasonable assurance that the District does not do business with vendors that are under federal exclusions. View of Responsible Officials. The District will develop a vendor approval process that includes verification through Sam.gov. Responsible Official. Frank Thomas, Director of Business and Human Resources, and Margaret Sawyer, Accountant Anticipated Completion Date. Immediately
2023-002 – Suspension and Debarment Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Controls over Compliance (Procurement, Suspension and Debarment). Program. Child Nutrition Cluster; U.S. Department of Agriculture; Assistance Listing Numbers 10.553, 10.555 and 10.559; Passed through Michigan Department of Education (MDE); All project numbers. Criteria. Recipients of federal awards are required to follow their own internal purchasing policies, as well as complying with purchasing standards set forth in the Uniform Guidance. Part of that guidance requires an entity to check if a vendor is suspended or debarred before entering into a contract. Condition. The District did not do checks on Sam.gov for one of the three vendors over the limit for 2022-23. The other two selected were bid by MDE or the Macomb Intermediate School District. Cause. Despite the District having policies in place, this condition was the result of not applying these policies consistently throughout the year. Effect. The District is exposed to an increased risk that future noncompliance could occur and not be prevented or detected by the District's internal controls. Questioned Costs. No costs were required to be questioned as a result of this finding inasmuch as our testing did not reveal any unallowed costs, and the vendors in question were not actually suspended or debarred. Recommendation. We recommend that the District consistently apply their documented procurement policy and implement procedures to provide reasonable assurance that the District does not do business with vendors that are under federal exclusions. View of Responsible Officials. The District will develop a vendor approval process that includes verification through Sam.gov. Responsible Official. Frank Thomas, Director of Business and Human Resources, and Margaret Sawyer, Accountant Anticipated Completion Date. Immediately
2023-002 – Suspension and Debarment Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Controls over Compliance (Procurement, Suspension and Debarment). Program. Child Nutrition Cluster; U.S. Department of Agriculture; Assistance Listing Numbers 10.553, 10.555 and 10.559; Passed through Michigan Department of Education (MDE); All project numbers. Criteria. Recipients of federal awards are required to follow their own internal purchasing policies, as well as complying with purchasing standards set forth in the Uniform Guidance. Part of that guidance requires an entity to check if a vendor is suspended or debarred before entering into a contract. Condition. The District did not do checks on Sam.gov for one of the three vendors over the limit for 2022-23. The other two selected were bid by MDE or the Macomb Intermediate School District. Cause. Despite the District having policies in place, this condition was the result of not applying these policies consistently throughout the year. Effect. The District is exposed to an increased risk that future noncompliance could occur and not be prevented or detected by the District's internal controls. Questioned Costs. No costs were required to be questioned as a result of this finding inasmuch as our testing did not reveal any unallowed costs, and the vendors in question were not actually suspended or debarred. Recommendation. We recommend that the District consistently apply their documented procurement policy and implement procedures to provide reasonable assurance that the District does not do business with vendors that are under federal exclusions. View of Responsible Officials. The District will develop a vendor approval process that includes verification through Sam.gov. Responsible Official. Frank Thomas, Director of Business and Human Resources, and Margaret Sawyer, Accountant Anticipated Completion Date. Immediately