Finding Text
2025-002: Suspension and Debarment Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559 Federal Award Identification Number and Year: 252IL058N1099-2024, 252IL058N1199-2024, 252IL058N1099-2025, 252IL058N1199-2025 Pass-Through Agency: Illinois State Board of Education Pass-Through Number(s): 25-4210-00, 25-4220-00, 24-4210-00, 24-4220-00, 24-4225-00 Award Period: July 1, 2024 – June 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Non-federal entities are required by Uniform Guidance to establish and maintain effective internal control over compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: During our audit, we identified that the District did not establish adequate internal control over compliance with federal suspension and debarment requirements as mandated by Uniform Guidance. Questioned Costs: None Context: We noted that suspension and debarment verification procedures were not performed prior to entering into a new covered transaction for 1 of 2 vendors tested. Cause: The District does not have an internal control policy in place that requires suspension and debarment verification procedures to be consistently performed prior to entering into a new covered transaction. Effect: Lack of internal control over compliance could result in noncompliance with federal suspension and debarment requirements, potentially leading to penalties or loss of federal funding. Repeat Finding: No Recommendation: For all covered transactions charged to federal programs, the District should ensure that suspension and debarment verification procedures are performed prior to entering into the covered transaction.