Finding 19833 (2022-002)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2022-11-28

AI Summary

  • Core Issue: The District failed to effectively review vendors for suspension or debarment, risking compliance with federal procurement rules.
  • Impacted Requirements: The finding relates to 2 CRF section 180.995, which mandates checks on vendor eligibility for federal fund transactions.
  • Recommended Follow-Up: Implement robust procedures to ensure all vendors are verified against suspension and debarment lists before procurement.

Finding Text

Finding: 2022-002 Suspension and Debarment Type of Finding: ? Significant deficiency in internal control over compliance 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): 1-2899-000 Award Period: July 1, 2021 - June 30, 2022 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 review process was not operating effectively. There was no support for review of certification regarding debarment, suspension, and responsibility for 1 of 2 vendors tested. Questioned Costs: None. Context: 1 of 2 vendors tested had no review to ensure they were not suspended or debarred. 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: No Recommendation: We recommend the District implement procedures and controls to ensure vendors are not suspended or debarred. Views of Responsible Officials: There is no disagreement with the finding.

Corrective Action Plan

SEE ATTACHED

Categories

Procurement, Suspension & Debarment Internal Control / Segregation of Duties

Other Findings in this Audit

  • 19834 2022-002
    Significant Deficiency
  • 19835 2022-002
    Significant Deficiency
  • 19836 2022-002
    Significant Deficiency
  • 19837 2022-002
    Significant Deficiency
  • 19838 2022-002
    Significant Deficiency
  • 596275 2022-002
    Significant Deficiency
  • 596276 2022-002
    Significant Deficiency
  • 596277 2022-002
    Significant Deficiency
  • 596278 2022-002
    Significant Deficiency
  • 596279 2022-002
    Significant Deficiency
  • 596280 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $616,167
84.010 Title I Grants to Local Educational Agencies $160,957
84.425 Education Stabilization Fund $153,258
10.553 School Breakfast Program $138,760
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $80,445
84.011 Migrant Education_state Grant Program $48,385
84.367 Improving Teacher Quality State Grants $35,199
84.027 Special Education_grants to States $32,772
84.048 Career and Technical Education -- Basic Grants to States $18,318
84.424 Student Support and Academic Enrichment Program $14,951
84.173 Special Education_preschool Grants $12,400
10.559 Summer Food Service Program for Children $8,837
10.556 Special Milk Program for Children $942