Finding 1201494 (2025-002)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-03-30

AI Summary

  • Core Issue: The District failed to document vendor checks for suspension or debarment as required by federal regulations.
  • Impacted Requirements: Noncompliance with CFR Title 2, part 180.220, which mandates verification of vendor eligibility for contracts over $25,000.
  • Recommended Follow-Up: Implement written procedures to ensure all vendors are verified against suspension and debarment lists before contract approval.

Finding Text

Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Title 2, part 180.220 states that non-Federal entities are prohibited from contracting with or making sub-awards under covered transactions to parties that are suspended or debarred. Condition: The District did not obtain debarment certification or document their vendor search in the System for Award Management website for vendors contracted in excess of $25,000 related to the grant program. Upon further review, it was determined that the vendors were not suspended or debarred. Questioned Costs: This condition resulted in no identified questioned costs. Context: The District does not have internal controls in place to verify that vendors are not suspended or debarred. Effect: Noncompliance with the federal award program's suspension and debarment compliance requirements could occur and not be detected and corrected timely. Cause: Written procedures are not in place to verify if vendors contracted in excess of $25,000 related to the Child Nutrition Cluster program are not suspended, debarred, or otherwise excluded from doing business. Recommendation: Procedures need to be implemented to ensure all vendors contracted with have not been suspended or debarred or otherwise excluded from doing business, prior to procuring their services. Management's Response: The District did verify vendors on the System for Award Management website, but lack written documentation. In the future, ISBE Form 85-34 will be completed in all future bid packets.

Corrective Action Plan

Condition: The District did not obtain debarment certification or document their vendor search in the System for Award Management website for vendors contracted in excess of $25,000 related to the grant program. Upon further review, it was determined that the vendors were not suspended or debarred. Plan: Procedures need to be implemented to ensure all vendors contracted with have not been suspended or debarred or otherwise excluded from doing business, prior to procuring their services.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1201488 2025-002
    Material Weakness Repeat
  • 1201489 2025-002
    Material Weakness Repeat
  • 1201490 2025-002
    Material Weakness Repeat
  • 1201491 2025-002
    Material Weakness Repeat
  • 1201492 2025-002
    Material Weakness Repeat
  • 1201493 2025-002
    Material Weakness Repeat
  • 1201495 2025-003
    Material Weakness Repeat
  • 1201496 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 EDUCATION STABILIZATION FUND $136,300
10.553 SCHOOL BREAKFAST PROGRAM $75,961
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $62,047
84.358 RURAL EDUCATION $38,384
84.027 SPECIAL EDUCATION GRANTS TO STATES $24,618
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $23,867
93.778 MEDICAL ASSISTANCE PROGRAM $18,026
10.555 NATIONAL SCHOOL LUNCH PROGRAM $11,782
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $5,772