Finding Text
2024-004 – Suspension and Debarment
Federal agency: U.S. Department of Agriculture
Federal program title: Child Nutrition Cluster
Assistance Listing Number: 10.553, 10.555, 10.556, 10.559, and 10.582
Pass-Through Agency: Minnesota Department of Education
Pass-Through Number(s): 1-0777-000
Award Period: July 1, 2023 - June 30, 2024
Type of Finding: Material Weakness in Internal Control over Compliance
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 District did not verify that the vendors/contractors were not suspended or debarred until after awarding the contract.
Questioned Costs: Not applicable.
Context: 2 of 2 vendors tested had no review before the awarding the contract 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: Not a repeat finding.
Recommendation: We recommend the District review suspension and debarment before entering into contracts with vendors.
Views of Responsible Official: There is no disagreement with the finding.