Finding Text
2022-004 Procurement/Suspension and Debarment Federal agency: U.S. Department of Agriculture Federal program title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-0550-000 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Material weakness in internal control over compliance and compliance Criteria: Per 2 CRF section 180.995, the District should have a policy in place to be followed to ensure they are properly procuring goods and services and 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 procurement testing, it was noted that proper procurement procedures were not operating effectively for 1 of 3 vendors testing. Additionally, during suspension and debarment testing, it was noted that the review process for suspension and debarment was not operating effectively. There was no support for review of certification regarding debarment, suspension, and responsibility for 2 of 3 vendors tested. Questioned Costs: Not applicable. Context: One of 3 vendors tested did not follow proper procurement procedures and 2 of 3 vendors tested had no review to ensure they were not suspended or debarred. Sample was a statistically valid sample. Cause: The District did not follow the process in place. Possible Effect: Lack of proper documentation of controls over compliance with procurement and 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: Not applicable. Recommendation: We recommend the District implement procedures and controls to ensure proper procurement procedures are being followed and vendors are not suspended or debarred. Views of Responsible Official: There is no disagreement with the finding.