Finding Text
2025-002 Suspension and Debarment Federal Agency: WI Department of Public Instruction Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.CNC Federal Award Identification Number and Year: N/A Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Number(s): 2025-424074-DPI-SP-SEVERE-546/ 2025-424074-DPI-SB-546/ 2025-424074-DPI-NSL-547 Award Period: 07/1/2024-6/30/2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Recipients and subrecipients are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. Condition: The District has policies and procedures in place to safeguard its assets and establish related controls over suspended or debarred vendors. However, documentation was not retained to ensure compliance with requirements of Uniform Guidance. Questioned Costs: None Context: As part of our audit we tested three vendors. On all three vendors it was noted that the District did not follow the established policies regarding suspension & debarment. Cause: While the District has polices related to suspension and debarment, it did not consistently follow its internal procedures or Uniform Guidance for documentation retention. Effect: Without sufficient documentation, the District cannot demonstrate that suspension and debarment transactions were conducted in accordance with Uniform Guidance. This increases the risk of noncompliance and potential transactions with suspended or debarred vendors. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the District ensures its policies are in effect by verifying vendors are not suspended or debarred and proper documentation is maintained of this verification. Views of Responsible Officials: There is no disagreement with this finding.