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