FINDING 2023-002
Finding Subject: Child Nutrition Cluster - Procurement and Suspension and
Debarment
Summary of Finding:
Prior to entering into subawards and covered transactions with program funds, recipients
are required to verify that such contractors and subrecipients are not suspended,
debarred...
FINDING 2023-002
Finding Subject: Child Nutrition Cluster - Procurement and Suspension and
Debarment
Summary of Finding:
Prior to entering into subawards and covered transactions with program funds, recipients
are required to verify that such contractors and subrecipients are not suspended,
debarred, or otherwise excluded. "Covered transactions" include, but are not limited to
contracts for goods and services awarded under a non-procurement transaction (i.e.,
grant agreement) that are expected to equal or exceed $25,000. The verification is to be
done by checking the SAM exclusions, collecting a certification from that person, or
adding a clause or condition to the covered transaction with that person.
Upon inquiry of the School Corporation, in order to review the procedures in place for
verifying that an entity with which it plans to enter into a covered transaction is not
suspended, debarred, or otherwise excluded, the School Corporation disclosed there
were not adequate procedures in place to ensure this. While the suspension and
debarment report is run on a yearly basis in June, this was not adequate to ensure that
this verification was performed prior to a covered transaction being entered into. One
covered transaction that equaled or exceeded $25,000, paid from Child Nutrition Cluster
funds, was identified. The one transaction, totaling $43,599.31, was selected for testing.
The School Corporation did not verify the vendor's suspension and debarment status prior
to payment.
INDIANA STATE BOARD OF ACCOUNTS
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Contact Person Responsible for Corrective Action: Lana M. Miller
Contact Phone Number and Email Address: Phone Number-812-689-6282
Email- lmiller@sripley.k12.in.us
Views of Responsible Officials: We concur with the finding
Description of Corrective Action Plan: We will amend our current process of running
Suspension and Debarment inquiries from annually in June each year to every six
months and prior to check issuance when over $25,000 from federal funds.
Anticipated Completion Date: Immediately, February 2024