Finding Text
Reference Number: 2023-003 United States Department of Agriculture Federal ID# & Program Name: 10.553 & 10.555 Child Nutrition Cluster Description: Suspension and Debarment Verification Criteria: Internal controls require that management confirm and maintain evidence that the vendors suspension and debarment status prior to vendors being included on grant claims. Condition: For four vendors that were awarded more than $25,000, documentation supporting that confirmation of vendor status occurred, prior to grant claim submission, was not maintained. Cause: Inadequate controls to ensure verification and maintain evidence of vendors that are not suspended or debarred are properly maintained. Effect: Determining that adequate controls are place for testing the suspension and debarment status of vendors was unverifiable for all five vendors. Auditors’ Recommendation: The Organization should maintain evidence that vendors were verified prior to the submission of grant claims. Corrective Action Plan: See attachment for Organization’s corrective action plan.