Finding Text
Type of Finding: Significant deficiency in internal control over compliance
Other matters
Federal Agency: U.S. Department of Agriculture
Federal Program Title: Child Nutrition Cluster
Assistance Listing Number: 10.553, 10.555, and 10.556
Pass-Through Agency: Minnesota Department of Education
Pass-Through Number(s): 1-204-000
Award Period: July 1, 2023 – June 30, 2024
Criteria or Specific Requirement: Per 2 CRF section 180.995, the District should have controls in place to review vendors showing they are not excluded or debarred for participating in procurement transactions that use federal funds.
Condition: During suspension and debarment testing, it was noted that the review process was not operating effectively. There was no support for review of certification regarding debarment, suspension, and responsibility for 2 of 3 vendors tested.
Questioned Costs: None
Context: 2 of 3 vendors tested had no review to ensure they were not suspended or debarred
Cause: Oversight.
Effect: Lack of proper documentation of controls over compliance with suspension and debarment requirements could result in paying suspended or debarred vendors. This could ultimately result in questioned costs. After review of vendors, it was noted that no vendors used were on the suspension or debarment list.
Repeat Finding: This is not a repeat finding.
Recommendation: We recommend the District implement procedures and controls to ensure vendors are not suspended or debarred.
Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the finding. Management will train employees on the UGG policy.