Finding 1163468 (2025-003)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2025-12-04

AI Summary

  • Core Issue: The District is not verifying vendor eligibility for Federal assistance programs annually, violating 2 CFR Section 200.214 and 2 CFR Part 180.
  • Impacted Requirements: Non-compliance with federal procurement regulations could lead to selecting ineligible vendors for federal programs.
  • Recommended Follow-Up: Ensure annual vendor eligibility reviews are conducted before fund disbursement, with staff trained on compliance requirements by September 30, 2025.

Finding Text

Child Nutrition Cluster - Procurement. Information on Federal Program: U.S. Department of Agriculture Child Nutrition Cluster (National School Breakfast Program, School Lunch Program, Supply Chain, non-cash assistance, Summer Food Service Program Assistance Listing numbers 10.553, 10.555 and 10.559) passed through the New York State Education Department. Criteria: 2 CFR Section 200.214 refers to executive orders 12549 and 12689 as well as 2CFR Part 180, which stipulates that no awards, subawards, or contracts be awarded to parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal Assistance programs or activities. Statement of Condition: During our discussions with management, we noted that the District is not verifying the eligibility of vendors to participate in Federal assistance programs on an annual basis. Statement of Cause: The District did not review compliance requirements related to procurement outlined in 2 CFR Section 200.214 and 2 CFR part 180. Statement of Effect: The District is not in compliance with 2 CFR Section 200.214 and 2 CFR Part 180. The District is not performing required procedures, as a result, vendors that are not eligible for participation in Federal assistance programs or activities could be selected. Questioned Costs: None Perspective Information: As a result of inquiry, the District was able to obtain information through the bidding process that the vendor had been reviewed for suspension and debarment, they also ensured the District’s vendors charged to the fund, were not suspended or debarred from participation in Federal assistance programs or activities. Repeat Finding: No Recommendation: We recommend that the District review the requirements of 2 CFR Section 200.214 and 2 CFR Part 180 and ensure that a review of the eligibility of potential vendors to participate in Federal assistance programs or activities is performed prior to disbursing funds to the vendor. This should be verified on an annual basis. Views of Responsible Officials and Planned Corrective Actions: The District acknowledges the finding and agrees with the recommendation. To address this issue the Business Office will verify all vendors used in federally funded programs at least once annually and prior to disbursing funds. Michele Hogan and April Young will be responsible with an anticipated completion date of September 30, 2025. Staff will review both 2 CFR Section 200.214 and 2 CFR Part 180 for understanding and compliance. Michele Hogan and John Lybert will be responsible with an anticipated completion date of September 30, 2025.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Action: The District acknowledges the finding and agrees with the recommendation. To address this issue, the following corrective actions will be implemented: The Business Office will verify all vendors used in federally funded programs at least once annually and prior to disbursing funds o Persons responsible: Michele Hogan and April Young o Anticipated Completion Date: This process will be completed by June 12th, 2026 ● Staff will review both 2 CFR Section 200.214 and 2 CFR Part 180 for understanding and compliance o Persons responsible: Michele Hogan and John Lybert o Anticipated Completion Date: This will be completed by September 30, 2025

Categories

Procurement, Suspension & Debarment School Nutrition Programs

Other Findings in this Audit

  • 1163464 2025-003
    Material Weakness Repeat
  • 1163465 2025-003
    Material Weakness Repeat
  • 1163466 2025-003
    Material Weakness Repeat
  • 1163467 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.027 SPECIAL EDUCATION GRANTS TO STATES $263,290
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $169,294
84.425 EDUCATION STABILIZATION FUND $101,281
10.553 SCHOOL BREAKFAST PROGRAM $95,247
10.579 CHILD NUTRITION DISCRETIONARY GRANTS LIMITED AVAILABILITY $69,744
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $24,611
10.555 NATIONAL SCHOOL LUNCH PROGRAM $17,896
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $11,890
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $10,507
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $8,244
10.185 LOCAL FOOD FOR SCHOOLS COOPERATIVE AGREEMENT PROGRAM $6,388