Finding Text
Federal program – Child Nutrition Cluster – Assistance Listing Numbers 10.553 (School Breakfast Program), 10.555 (National School Lunch Program), and 10.559 (Summer Food Service Program for Children) – U.S. Department of Agriculture Program Year 2024–2025 Criteria or specific requirement – Suspension and debarment – 2 CFR §200.214 Condition – During our audit, documentation supporting verification of the suspension and debarment status was not able to be provided for a vendor with which a new covered transaction was entered. However, the vendor is not currently registered as being suspended or debarred. Cause – District procedures are designed to verify suspension and debarment status only upon initial vendor setup and do not require verification upon execution of each new covered transaction with an existing vendor. Effect or potential effect – This condition increases the risk that covered transactions could be entered into with vendors that may become suspended or debarred after initial vendor setup, which could result in noncompliance with federal requirements if not addressed. Questioned Costs – N/A Context – Out of a population of five vendors with which a covered transaction was entered into during the period, one was selected for testing. Documentation supporting the verification of the suspension and debarment status for this vendor was not able to be provided. Our sample was not, and was not intended to be, statistically valid. Identification as a repeat finding, if applicable – N/A Recommendation – We recommend the District update its policies and procedures to require suspension and debarment verification for all covered transactions, including those involving existing vendors, either prior to contract execution or award or on an annual basis. The District should also ensure such reviews are documented and retained in accordance with federal record retention requirements. Views of responsible officials and planned corrective action – Management agrees with this finding.