Finding 1165621 (2025-002)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2025-12-19

AI Summary

  • Core Issue: The District failed to document the suspension and debarment review for procurement transactions exceeding $25,000.
  • Impacted Requirements: Compliance with procurement regulations under 2 CFR section 180.220, which prohibits contracting with suspended or debarred parties.
  • Recommended Follow-up: Revise policies to ensure documentation of suspension and debarment reviews is maintained for all relevant procurement transactions.

Finding Text

Suspension & Debarment Federal Agency: U.S. Department of Education Federal Program Name: Special Education Cluster (Special Education – Grants to States and Special Education – Preschool Grants) Assistance Listing Number: 84.027 and 84.173 Federal Award Identification Number and Year: H027A240064 and H173A240070 Pass- through Agency: Wisconsin Department of Public Instruction Pass-through Numbers: 2025 - 495607 - DPI - FLOW – 341 and 2025 - 495607 - DPI - PRESCH - 347 Award Period: July 1, 2024 – June 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Compliance Requirement: Procurement, Suspension & Debarment Criteria: Non-federal entities 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 entered into procurement transactions that exceeded the covered threshold and while the District did perform a review of suspension and debarment status using sam.gov, it did not document that the review was completed prior to entering the contract or approving the procurement transaction in accordance with 2 CFR section 180.220. Questioned Costs: None Context: The District did not document the date of the suspension and debarment review for the three transactions that exceeded the covered threshold during the year. Cause: The District did not have procedures in place to help ensure that the date of review was documented. Effect: Certain vendors could be used that are considered suspended or debarred by the federal government resulting in noncompliance. Repeat Finding: No Recommendation: We recommend the District revise its policies and procedures to ensure that documentation as to the date of the review of suspension and debarment status is maintained with the procurement history of each transaction that requires such a search. Views of Responsible Officials: There is no disagreement with the finding.

Corrective Action Plan

Suspension and Debarment Special Education Cluster (Special Education – Grants to States and Special Education – Preschool Grants) Assistance Listing No. 84.027 and 84.173 Recommendation: Auditors recommend the District revise its policies and procedures to ensure that documentation as to the date of the review of suspension and debarment status is maintained with the procurement history of each transaction that requires such a search. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District changed all the requisition/PO groups and any po that comes in for approval over the $25,000 threshold will go to the purchasing department first. The purchasing department will verify the vendor and attach the documentation to the purchase order. The purchase order can then go through the approval process. This process will eliminate any contracts/purchases to go through without being verified first. Name(s) of the contact person(s) responsible for corrective action: Michael Kurtz Planned completion date for corrective action plan: December 4, 2025

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1165620 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.027 SPECIAL EDUCATION GRANTS TO STATES $1.67M
93.778 MEDICAL ASSISTANCE PROGRAM $1.11M
10.555 NATIONAL SCHOOL LUNCH PROGRAM $377,797
84.425 EDUCATION STABILIZATION FUND $353,913
84.287 TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS $315,198
10.553 SCHOOL BREAKFAST PROGRAM $232,481
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $229,642
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $167,000
10.558 CHILD AND ADULT CARE FOOD PROGRAM $130,321
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $83,235
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $67,829
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $39,965
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $39,615
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $27,347
84.011 MIGRANT EDUCATION STATE GRANT PROGRAM $14,006