Finding Text
U.S. Department of Agriculture
Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education
Child Nutrition Cluster:
School Breakfast Program, 10.553
National School Lunch Program, 10.555
Summer Food Service Program for Children, 10.559
Procurement, Suspension, and Debarment
Significant Deficiency in Internal Control over Compliance
Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards.
Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction.
Condition: In our testing of procurement, suspension, and debarment, it was identified that the search for suspension and debarment was performed subsequent to entering into covered transactions with three vendors.
Cause: The Organization has designated internal controls over this area; however, the controls were not performed timely.
Effect: Failure to document the search for suspension and debarment before entering into the covered transaction could result in noncompliance.
Questioned Costs: None reported.
Context/Sampling: 7 vendors out of 31 vendors total were selected for testing which made up $240,437 of $572,161 federal awards.
Repeat Finding from Prior Year: No
Recommendation: We recommend that management review vendors for suspension and debarment prior to entering into contracts to ensure vendors are not suspended or debarred.
Views of Responsible Officials: Management agrees with this finding.