Finding Text
Finding 2024-003: Significant Deficiency - Internal Control and Compliance Over Procurement
Program: Child Nutrition Cluster
Assistance Listing Number: 10.553/10.555
Pass-Through Agency: Wisconsin Department of Public Instruction
Criteria: Guidance provided in 2 CFR part 200.318 requires non-federal entities to establish and follow their own documented procurement procedures that conform to applicable federal law and standards. A system of internal controls should be in place to ensure procurement policies are being adhered to. There are also requirements to verify the vendors are not suspended or debarred.
Condition/Context: There was no documented approval of one of the two procurements tested. The food service director handled the procurement of kitchen equipment and no documentation of review by a different appropriate individual was noted. Additionally, it is unclear whether suspension or debarment of the vendor was considered. The sample was not a statistically valid sample.
Cause: District policy for procurement was not enforced.
Effect: This could potentially lead to higher costs for the food service program or selection of vendors who are not eligible to be paid with federal funds.
Questioned Costs: None noted.
Recommendation: Program personnel should become familiar with the procurement, suspension and debarment rules for federal programs and the District's policies and implement process changes as soon as possible.
Views of Responsible Officials: Management agrees with finding 2024-003 and will make efforts to implement recommended procedures.