Finding Text
2023-001 U.S. Department of Agriculture
Passed-through the Commonwealth of Massachusetts’ Department of
Elementary and Secondary Education
Child Nutrition Cluster – ALN 10.553, 10.555 & 10.559
Significant Deficiency in Internal Controls Over Compliance and Compliance Finding
Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Per 2 CFR section 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred.
Condition: A competitive procurement process, which includes suspension and debarment certifications, was not properly performed by the Town for the purchase of school lunch food products.
Cause: The Town utilized vendors that were previously contracted in prior years without performing a current procurement and suspension and debarment verification.
Effect: The Town is not in compliance with Federal procurement or suspension and debarment requirements.
Questioned Costs: $453,359
Repeat Finding from Prior Year: Yes; Finding 2022-001
Recommendation: The Town should implement procedures to perform competitive procurements, which include suspension and debarment certification, for all applicable purchases of goods and services.
Views of Responsible Official: Management agrees with the finding.