Finding Text
Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 10.553/10.582/10.555/10.559, Child Nutrition Cluster Federal Award Identification Number and Year: 241970/ 251970/ 241960/ 241980/ 251980/ 251980 Pass-through Entity – Michigan Department of Education Finding Type – Material weakness in internal control over compliance Repeat Finding - No Criteria – A recipient of federal awards is required to follow their own internal procurement policies, and to determine that vendors being paid with federal funds are not suspended or debarred from doing business with the government. Suspension and debarment procedures are required whenever the amount disbursed to a single vendor in a given fiscal year is expected to be at least $25,000. Condition – Management was not able to provide evidence of checking for suspension and debarment of the food sponsor. Identification of How Questioned Costs Were Computed – N/A Questioned Costs – None Cause – Management was not fully versed in the requirements related to procurement, and suspension and debarment. Effect – As a result of this condition, the Academy was exposed to the risk that disbursements of federal awards could be made to vendors suspended or debarred by the federal government. The Academy also did not fully comply with the requirements of the Uniform Guidance. Recommendation – We recommend that the Academy implement policies and procedures to assure that documentation is retained related to compliance with internal procurement policies. We further recommend that the Academy implement a procedure that requires all vendors, expected to be paid more than $25,000, be checked for active exclusions at www.sam.gov. View of Responsible Officials and Corrective Action Plan – Management agrees with the finding. See corrective action plan.