Finding Text
2024-006 Federal Agencies: U.S. Department of Agriculture Federal Program Names: The Child Nutrition Cluster: National School Lunch Program Summer Food Service Program Child and Adult Care Food Program Assistance Listing Numbers: 10.555 10.559 10.558 Pass-Through Agency: Commonwealth of Pennsylvania, Department of Education Pass-Through Number: 359-46-477-8 Award Period: July 1, 2023 through June 30, 2024 Type of Finding: • Material Weakness in Internal Control over Compliance Criteria: According to 2 CFR § 200.213, non-federal entities must ensure that they do not enter into contracts or subcontracts with parties that are suspended or debarred from participating in federal programs. This requires verification of the status of potential contractors or subcontractors by checking the federal government's System for Award Management (SAM). Additionally, 2 CFR § 180 provides guidelines for agencies to follow in implementing the governmentwide debarment and suspension system. Condition: As part of our procurement testing in accordance with Uniform Guidance requirements, we requested that management provide the most recent suspension and debarment assessments for the vendors selected for review. Our analysis indicated that management did not perform these assessments by reviewing the federal government's suspended or debarred vendor list on SAM.gov. Rather, management relied on vendor certifications obtained through the Commonwealth of Pennsylvania, Department of Education, to determine vendor eligibility with respect to suspension or debarment from federally funded programs. Additionally, we observed that the current procurement policy for the CBS Food Program does not outline a formal procedure for evaluating vendors' suspension and debarment status as required by Uniform Guidance. The results of our testing concluded that although the CBS Food Program does not currently have an established suspension and debarment policy, the sampled vendors were vetted and approved by the Commonwealth of Pennsylvania, Department of Agriculture to participate in these federal award programs. This observation highlights an impact on the CBS Food Program’s internal controls regarding compliance with suspension and debarment requirements. Questioned Costs: None Cause: The CBS Food Program’s procurement policy does not include a formal process for evaluating vendors regarding suspension and debarment, and management did not conduct the necessary suspension and debarment assessments. Effect: The lack of a formal process for evaluating vendors regarding suspension and debarment raises significant compliance concerns. Management's failure to conduct the necessary suspension and debarment assessments by reviewing the federal government's suspended or debarred list on SAM.gov indicates that there are no established procedures in place to verify that vendors are not suspended or debarred from participating in federal programs. This non-compliance could lead to questioned costs and necessitate further investigation to ensure adherence to federal regulations and proper procurement protocols. Recommendation: We recommend that management establish and implement a formal process for evaluating vendors regarding suspension and debarment. This process should include regular reviews of the federal government's suspended or debarred list on SAM.gov to ensure that vendors are not suspended or debarred from participating in federal programs. Additionally, management should ensure that all procurement policies and procedures are updated to reflect this requirement. Views of Responsible Officers and Corrective Action Plan: Please refer to Community Benefit Solutions dba CBS Food Program’s Corrective Action Plan.