FINDING 2024-002
Subject: Child Nutrition Cluster - Internal Controls
Federal Agency: Department of Agriculture
Federal Program: School Breakfast Program, National School Lunch Program
Assistance Listing Number: 10.553, 10.555
Federal Award Numbers and Years (or Other Identifying Numbers): FY 22-23,...
FINDING 2024-002
Subject: Child Nutrition Cluster - Internal Controls
Federal Agency: Department of Agriculture
Federal Program: School Breakfast Program, National School Lunch Program
Assistance Listing Number: 10.553, 10.555
Federal Award Numbers and Years (or Other Identifying Numbers): FY 22-23, FY 23-24
FINDING 2024-002 (Continued)
Pass-Through Entity: Indiana Department of Education
Compliance Requirement: Procurement and Suspension and Debarment
Audit Finding: Material Weakness
Condition: An effective internal control system was not in place at the School Corporation to ensure
compliance with requirements related to the Child Nutrition Cluster and Procurement and Suspension and
Debarment compliance requirements.
Context:
Procurement
The School Corporation participates in the Food2School Child Nutrition Cooperative which procures vendors for
food purchases and other supplies on behalf of its members. During the audit period, the School Corporation
purchased supplies and equipment from vendors not procured by the Cooperative. One vendor with aggregate
annual purchases of $118,390 and $68,859 for fiscal year 2023 and fiscal year 2024, respectively, exceeded
the small purchase threshold ($50,000 - $150,000) and was not subject to the School Corporation’s procurement
policy to solicit multiple quotes and to document the method and rationale for procurement.
Suspension and Debarment
For three vendors tested which were not procured by the Cooperative and had aggregate annual disbursements
exceeding the federal suspension and debarment threshold of $25,000, the School Corporation did not perform
suspension and debarment checks to confirm the vendors were not suspended or debarred before entering into
the contract or disbursing federal funds.
Views of Responsible Official: We concur with the finding.
Description of Corrective Action Plan: Management will implement a procurement checklist that is reviewed
after the purchasing process has been completed to ensure compliance with purchasing requirements for federal
awards. Sam.gov will be checked for each vendor with aggregate purchases above $25,000.
Responsible Party and Timeline for Completion: Shane Hacker, Assistant Superintendent of Operations;
Corey Ebert, Director of Finance; Jordan Ryan, Director of Nutrition Services
Anticipated Completion Date: February 1, 2025.