Finding 1203022 (2025-004)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-03-30
Audit: 396272
Organization: Lake Michigan College (MI)

AI Summary

  • Core Issue: The College failed to verify that vendors were not suspended or debarred for contracts over $25,000, particularly for those under sole source justification.
  • Impacted Requirements: Compliance with federal regulations requiring vendor checks for suspension and debarment was not met.
  • Recommended Follow-Up: Implement a process to verify vendor status using SAM.gov and maintain documentation in procurement files to ensure compliance.

Finding Text

Assistance Listing, Federal Agency, and Program Name - 21.027 COVID 19 Coronavirus State and Local Fiscal Recovery Funds, Academic Catch up Program, ADN to BSN Completion Grant Program, Reconnect Age Expansion Grant Program Federal Award Identification Number and Year - SLFRP0127 and GG 186 240000003828 Pass through Entity - Michigan Community College Association and Michigan Department of Lifelong Education, Advancement, and Potential Finding Type - Material weakness Repeat Finding - No Criteria - When awarding contracts over $25,000, the College is required to review and maintain evidence that the vendors are neither suspended or debarred. Condition - The College did not perform suspension or debarment for vendors subject to the College's sole source justification procurement process. Questioned Costs - None If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - N/A Identification of How Questioned Costs Were Computed - None Context - Of the two purchases that were tested for suspension and debarment, there was not adequate documentation for the one vendor that was subject to the sole source procurement process to determine the College verified the vendor was not suspended or debarred. Cause and Effect - The College had not established a control to ensure that contracts and vendors subject to their sole source justification procurement process were reviewed for supsenion and debarment. Recommendation - The College should implement a process to review certificates or other support to verify that vendors are not suspended or debarred. Views of Responsible Officials and Planned Corrective Actions - The College will implement procedures to ensure suspension and debarment verification is consistently performed for vendors subject to sole source justification. Specifically, SAM.gov verification will be conducted and documented prior to approving a sole source request, during contract review, and before issuing a purchase order. A Procurement Checklist will be implemented to ensure this verification step is completed as part of the procurement process. Additionally, evidence of the SAM.gov search, such as a screenshot or saved record, will be retained in the procurement file to support compliance.

Corrective Action Plan

Finding Number: 2025-004 Condition: The College did not perform suspension or debarment for vendors subject to the College's sole source justification procurement process. Planned Corrective Action: The College will implement procedures to ensure suspension and debarment verification is consistently performed for vendors subject to sole source justification. Specifically, SAM.gov verification will be conducted and documented prior to approving a sole source request, during contract review, and before issuing a purchase order. A Procurement Checklist will be implemented to ensure this verification step is completed as part of the procurement process. Additionally, evidence of the SAM.gov search, such as a screenshot or saved record, will be retained in the procurement file to support compliance. Contact person responsible for corrective action: Nathan Main, Manager of Purchasing and Risk Management Anticipated Completion Date: 03/27/2026

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1203003 2025-001
    Material Weakness Repeat
  • 1203004 2025-001
    Material Weakness Repeat
  • 1203005 2025-001
    Material Weakness Repeat
  • 1203006 2025-001
    Material Weakness Repeat
  • 1203007 2025-002
    Material Weakness Repeat
  • 1203008 2025-002
    Material Weakness Repeat
  • 1203009 2025-002
    Material Weakness Repeat
  • 1203010 2025-002
    Material Weakness Repeat
  • 1203011 2025-002
    Material Weakness Repeat
  • 1203012 2025-002
    Material Weakness Repeat
  • 1203013 2025-002
    Material Weakness Repeat
  • 1203014 2025-003
    Material Weakness Repeat
  • 1203015 2025-003
    Material Weakness Repeat
  • 1203016 2025-003
    Material Weakness Repeat
  • 1203017 2025-003
    Material Weakness Repeat
  • 1203018 2025-003
    Material Weakness Repeat
  • 1203019 2025-003
    Material Weakness Repeat
  • 1203020 2025-004
    Material Weakness Repeat
  • 1203021 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $5.45M
84.268 FEDERAL DIRECT STUDENT LOANS $1.53M
84.116 FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION $405,730
21.027 COVID-19 - CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $401,551
84.066 TRIO EDUCATIONAL OPPORTUNITY CENTERS $334,687
84.042 TRIO STUDENT SUPPORT SERVICES $247,451
84.047 TRIO UPWARD BOUND $226,422
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $138,069
10.310 AGRICULTURE AND FOOD RESEARCH INITIATIVE (AFRI) $81,416
84.033 FEDERAL WORK-STUDY PROGRAM $63,617
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $9,246