Finding 1182102 (2025-001)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-03-23

AI Summary

  • Core Issue: The District is not documenting vendor checks against the federal suspension and debarment list, which weakens internal controls.
  • Impacted Requirements: This violates 2 CFR 200.303 and OMB Compliance Supplement requirements for maintaining effective internal controls.
  • Recommended Follow-up: Update District policies to mandate documentation of all internal control procedures, ensuring compliance and accountability.

Finding Text

Criteria or Specifc Requirement: Per 2 CFR 200.303 - Internal Controls and the OMB Compliance Supplement: Special Education Cluster (IDEA), Procurement and Suspension and Debarment - the District is required to create, implement, and document an effective system of internal controls to certify that vendors utilized by the District are neither suspended nor debarred by the federal government. Condition: District personnel perform a search for all new vendors on SAM.gov's exclusion list to ensure that the vendor is neither suspended nor debarred from contracting with federal agencies; however, District personnel do not retain documentation that this search was performed. Questioned Costs: This condition resulted in no identified questioned costs. Context: District personnel are not documenting the procedures performed to ensure that vendors are neither suspended nor debarred by the federal governemnt. Effect: Is is possible for District personnel to not perform internal control procedures, as there is no way for management to determine if the procedure had been performed. Cause: The District's policies do not require that this procedure be documented. Recommendation: The District's policies should require that documentation is retained for all internal control procedures performed, including a search to verify that vendors are neither suspended nor debarred by the federal government. Management's Response: Management does not disagree with this response. Documentation will be maintained for this internal control in the future.

Corrective Action Plan

Condition - District personnel perform a search for all new vendors on SAM.gov's exclusion list to ensure that the vendor is neither suspended nor debarred from contracting with federal agencies; however, District personnel do not retain documentation that this search was performed. Plan - District personnel will take a screenshot of the search screen after performing the search. This screenshot will be maintained with the vendor's file. This search will be reperformed each year for vendors known to be utilized for federal grant programs. Anticpiated Date of Completion - February 2026; Name of Contact - Mike McKenzie, Chief Financial Officer; Management Response - The plan, as described above, has been communicated with the personnel responsible for performing this procedure and will be implemented immediately.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1182098 2025-001
    Material Weakness Repeat
  • 1182099 2025-001
    Material Weakness Repeat
  • 1182100 2025-001
    Material Weakness Repeat
  • 1182101 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $329,604
84.425 EDUCATION STABILIZATION FUND $286,707
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $181,503
10.555 NATIONAL SCHOOL LUNCH PROGRAM $112,769
93.778 MEDICAL ASSISTANCE PROGRAM $97,609
84.027 SPECIAL EDUCATION GRANTS TO STATES $38,700
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $27,712
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $14,243
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $816