Finding 1190899 (2025-002)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-03-27

AI Summary

  • Core Issue: The district lacks proper documentation for vendor checks against suspension and debarment lists, which is a significant deficiency in compliance controls.
  • Impacted Requirements: The district must adhere to 2 CRF section 180.995, ensuring that vendors are not excluded from federal funding transactions.
  • Recommended Follow-Up: Implement procedures to document vendor checks and train staff on compliance with the UGG policy to prevent future issues.

Finding Text

SUSPENSION AND DEBARMENT Type of Finding: Significant deficiency in internal control over compliance Other matters Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-0256-000 Award Period: July 1, 2024 – June 30, 2025 Criteria or Specific Requirement: Per 2 CRF section 180.995, the District should have controls in place to review vendors showing they are not excluded or debarred for participating in procurement transactions that use federal funds. Condition: During suspension and debarment testing, it was noted that the district was not retaining documentation of Sam.Gov searches. Questioned Costs: None. Context: During suspension and debarment testing, it was noted that the district was not retaining documentation of Sam.Gov searches. Cause: Oversight. Effect: Lack of proper documentation of controls over compliance with suspension and debarment requirements could result in paying suspended or debarred vendors. This could ultimately result in questioned costs. After review of vendors, it was noted that no vendors used were on the suspension or debarment list. Repeat Finding: Yes. 2024-001. Recommendation: We recommend the District implement procedures and controls to ensure vendors are not suspended or debarred. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the finding. Management will train employees on the UGG policy.

Corrective Action Plan

Child Nutrition Cluster – Assistance Listing No. 10.553, 10.555 and 10.559 Recommendation: We recommend the District implement procedures and controls to ensure vendors are not suspended or debarred. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Districted should retain documentation of their search of Sam.Gov for suspended or debarred vendors. Name of the contact person responsible for corrective action: Chris Muhvich, Director, Finance & Operations Planned completion date for corrective action plan: June 30, 2026

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1190894 2025-002
    Material Weakness Repeat
  • 1190895 2025-002
    Material Weakness Repeat
  • 1190896 2025-002
    Material Weakness Repeat
  • 1190897 2025-002
    Material Weakness Repeat
  • 1190898 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $460,702
10.553 SCHOOL BREAKFAST PROGRAM $224,696
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $119,619
84.027 SPECIAL EDUCATION GRANTS TO STATES $107,655
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $92,419
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $79,343
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $36,831
84.060 INDIAN EDUCATION GRANTS TO LOCAL EDUCATIONAL AGENCIES $30,187
84.181 SPECIAL EDUCATION-GRANTS FOR INFANTS AND FAMILIES $19,321
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $8,949
10.558 CHILD AND ADULT CARE FOOD PROGRAM $4,321
10.555 NATIONAL SCHOOL LUNCH PROGRAM $2,496
84.126 REHABILITATION SERVICES VOCATIONAL REHABILITATION GRANTS TO STATES $440
84.425 EDUCATION STABILIZATION FUND $66