Finding 1164874 (2025-001)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2025-12-15
Audit: 374728
Organization: Plainwell Commiunity Schools (MI)

AI Summary

  • Core Issue: The District failed to check if vendors were suspended or debarred and did not obtain required quotes for certain purchases.
  • Impacted Requirements: Compliance with federal procurement rules, specifically for vendors receiving over $25,000 in federal funds.
  • Recommended Follow-Up: Ensure vendor checks are completed and documented, and obtain quotes from qualified sources as per purchasing policies.

Finding Text

Procurement, Suspension and Debarment Finding Type. Immaterial Noncompliance / Significant Deficiency in Internal Control over Compliance (Procurement, Suspension and Debarment). Federal Programs. Child Nutrition Cluster; U.S. Department of Agriculture; ALN 10.553, 10.555, and 10.559; All award numbers. Criteria. A recipient of federal awards is required to determine that vendors being paid with federal funds are not suspended or debarred from doing business with the District. Such procedures are required whenever the amount disbursed to a single vendor in a given year is expected to be at least $25,000. A recipient of federal awards is also required to obtain quotes or bids from an adequate number of qualified sources as determined by the District's purchasing policies/procedures for federal awards. Condition. The District indicated that they have not been completing suspension and debarment checks on District vendors. The District also indicated that they did not obtain quotes for a purchase over the micropurchase threshold but less than the small purchase threshold. Cause. This condition was caused by a lack of management oversight in knowing the federal compliance requirements of the grant, and maintaining appropriate supporting documentation to evidence compliance. Effect. As a result of this condition, the District was exposed to the risk that disbursements of federal awards would be made to vendors suspended or debarred by the federal government and subject to disallowance by the grantor. The District was exposed to the risk that disbursements of federal awards were not subject to full and open competition. Questioned Costs. No costs have been questioned as a result of this finding. Recommendation. We recommend that the District verify that any of their vendors with $25,000 spent with federal funds were not suspended or debarred, and that documentation of these procedures be retained. We also recommend that the District obtain quotes or bids from an adequate number of qualified sources as determined by the District's purchasing policies/procedures for federal awards. View of Responsible Officials. The District agrees with the finding and has prepared a corrective action plan.

Corrective Action Plan

Corrective Action Plan Pursuant to federal regulations, Uniform Administrative Requirements Section 200.511, the following is the finding as noted in the Plainwell Community Schools Single Audit report for the year ended June 30, 2025, and corrective actions to be completed. 2025-001 – Procurement, Suspension and Debarment Auditor Description of Condition and Effect. The District indicated that they not have been completing suspension and debarment checks on District vendors. The District also indicated that they did obtain of quotes for a purchase over the micropurchase threshold but less than the small purchase threshold. As a result of this condition, the District was exposed to the risk that disbursements of federal awards would be made to vendors suspended or debarred by the federal government and subject to disallowance by the grantor. The District was exposed to the risk that disbursements of federal awards were not subject to full and open competition. Auditor Recommendation. We recommend that the District verify that any of their vendors with $25,000 spent with federal funds were not suspended or debarred, and that documentation of these procedures be retained. We also recommend that the District obtain quotes or bids from an adequate number of qualified sources as determined by the District's purchasing policies/procedures for federal awards. Corrective Action. The District will review vendors with over $25,000 spent in federal funds to ensure that they are not suspended or debarred and retain documented support for the procedures performed. The District will also obtain quotes or bids from an adequate number of qualified sources as determined by the District's purchasing policies/procedures for federal awards. Responsible Person. Melissa Gelbaugh, Finance Director Anticipated Completion Date. June 30, 2026

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1164868 2025-001
    Material Weakness Repeat
  • 1164869 2025-001
    Material Weakness Repeat
  • 1164870 2025-001
    Material Weakness Repeat
  • 1164871 2025-001
    Material Weakness Repeat
  • 1164872 2025-001
    Material Weakness Repeat
  • 1164873 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $323,044
10.553 SCHOOL BREAKFAST PROGRAM $231,002
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $170,780
10.555 NATIONAL SCHOOL LUNCH PROGRAM $120,944
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $59,432
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $40,122
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $38,358
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $20,017
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $19,788
93.778 MEDICAL ASSISTANCE PROGRAM $13,324