FAC Explorer

Finding 21830 (2022-004)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2022-11-14
Audit: 19110
Organization: Independent School District No. 2342 Wca Public Schools (MN)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: One out of two vendors tested was not checked for suspension and debarment, violating compliance requirements.
  • Impacted Requirements: The District must have controls to verify that vendors are not excluded from federal procurement, as mandated by Title 2 U.S. Code of Federal Regulations ?200.319.
  • Recommended Follow-Up: Implement procedures to ensure all vendors are reviewed for suspension and debarment before procurement transactions.

Finding Text

Finding: 2022-004 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 Federal Award Identification Number and Year: 212MN061N1199- 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-2342-000 Award Period: June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance Condition: During suspension and debarment testing, it was noted that one out of two vendors selected for testing were not reviewed for suspension and debarment. Criteria or Specific Requirement: The District should have controls in place to review vendors to ensure they are not excluded or debarred from participating in procurement transactions that use federal funds. Context: Title 2 U.S. Code of Federal Regulations ?200.319 states that the entity must review all vendors to ensure they are not included on the suspension and debarment listing. 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. During testing, it was noted that there were no issues with the actual vendors used by the District. Cause: There is currently no process or procedure in place to review vendors for suspension and debarment that are not under contract. 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 audit finding

Corrective Action Plan

Finding: 2022-004 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 Federal Award Identification Number and Year: 212MN061N1199- 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-2342-000 Award Period: June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance Recommendation: We recommend that District implement procedures and controls to ensure vendors are not suspended or debarred. Views of Responsible Officials: There is no disagreement with the audit finding. Action Taken in Response to Finding: The District will implement procedures to ensure before a transaction is entered into with a vendor, they have a review in place to ensure the vendor is not included on the suspension and debarment listing. Name of the Contact Person Responsible for Corrective Action Plan: Paul Brownlow, Superintendent Planned Completion Date for Corrective Action Plan: June 30, 2023

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 21831 2022-004
    Significant Deficiency
  • 21832 2022-004
    Significant Deficiency
  • 21833 2022-004
    Significant Deficiency
  • 21834 2022-004
    Significant Deficiency
  • 21835 2022-004
    Significant Deficiency
  • 21836 2022-004
    Significant Deficiency
  • 598272 2022-004
    Significant Deficiency
  • 598273 2022-004
    Significant Deficiency
  • 598274 2022-004
    Significant Deficiency
  • 598275 2022-004
    Significant Deficiency
  • 598276 2022-004
    Significant Deficiency
  • 598277 2022-004
    Significant Deficiency
  • 598278 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $142,226
84.425 Education Stabilization Fund $65,693
10.553 School Breakfast Program $61,983
84.367 Improving Teacher Quality State Grants $22,650
10.555 National School Lunch Program $17,852
84.424 Student Support and Academic Enrichment Program $9,861
10.556 Special Milk Program for Children $472