Finding Text
Finding Type. Immaterial Noncompliance / Significant Deficiency in Internal Control over Compliance (Procurement, Suspension and Debarment).
Federal Programs. Child Nutrition Cluster; U.S. Department of Agriculture; ALN 10.553, 10.555, and 10.559.
Criteria. A recipient of federal awards is required to determine that vendors being paid with federal funds are not suspended or debarred from doing business with the District. Such procedures are required whenever the amount disbursed to a single vendor in a given year is expected to be at least $25,000.
Condition. The District indicated that they not have been completing suspension and debarment checks on District vendors.
Cause. This condition was caused by management oversight in knowing the federal compliance requirements of the grant, and maintaining appropriate supporting documentation to evidence compliance.
Effect. As a result of this condition, the District was exposed to the risk that disbursements of federal awards would be made to vendors suspended or debarred by the federal government and subject to disallowance by the grantor.
Questioned Costs. No costs have been questioned as a result of this finding.
Recommendation. We recommend that the District verify that any of their vendors with $25,000 spent with federal funds were not suspended or debarred, and that documentation of these procedures be retained.
View of Responsible Officials. The District agrees with the finding and has prepared a corrective action plan.