Finding 2728 (2023-003)

Significant Deficiency Repeat Finding
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2023-11-30

AI Summary

  • Core Issue: The District is not verifying vendor eligibility for Federal assistance programs, violating 2 CFR Section 200.213.
  • Impacted Requirements: Non-compliance with procurement procedures outlined in 2 CFR Section 200.318 and 200.213 could lead to selecting ineligible vendors.
  • Recommended Follow-up: The District should review eligibility requirements and ensure vendor checks are performed before fund disbursement, with immediate action planned by management.

Finding Text

Child Nutrition Cluster - Procurement Information on Federal Program: U.S Department of Agriculture Child Nutrition Cluster (National School Lunch Program, School Breakfast Program, and COVD-19 Summer School Food Service Program CFDA No. 10.555, and 10.559) passed through the New York State Education Department. Criteria: CFR Section 200.318 stipulates that a non-Federal entity must use its own documented procurement procedures which reflect applicable state, local, and tribal laws, and regulations, provided that the procurements conform to applicable Federal law and the standards identified in Part 200 Subpart D. Additionally, 2 CFR Section 200.213 stipulates that no awards, subawards, or contracts be awarded to parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Statement of Condition: During our discussions with management and testing of the major program, we noted that the District is not verifying the eligibility of vendors to participate in Federal assistance programs. Statement of Cause: The District did not review compliance requirements related to procurement outlined in 2 CFR Section 200.318 and Section 200.213. Statement of Effect: The District is not in compliance with 2 CFR Section 200.213. The District is not performing required procedures, as a result, vendors that are not eligible for participation in Federal assistance programs or activities could be selected or the District could be overpaying for goods and services. Questioned Cost: None. Repeat Finding: Yes Recommendation: We recommend that the District review the requirements of 2 CFR Section 200.213 and ensure that a review of the eligibility of potential vendors to participate in Federal assistance programs or activities is performed prior to disbursing funds to the vendor. Views of the Responsible Officials and Planned Corrective Actions: The District is in a contract with Capital Region BOCES for the management of the school nutrition department. There were staff changes during the year and the new hire was unaware of the requirements. Cathy Meher, District Treasurer will meet with both the new Director and his supervisor at BOCES to relay the audit finding and develop a plan moving forward. This will happen immediately. Perspective Information: As part of testing of compliance over procurement, a selection of vendors charged to the major program was selected for testing of compliance. Of the District’s vendors charged to the program, none were suspended or debarred from participation in Federal assistance programs or activities.

Categories

School Nutrition Programs Procurement, Suspension & Debarment Eligibility Subrecipient Monitoring

Other Findings in this Audit

  • 2726 2023-003
    Significant Deficiency Repeat
  • 2727 2023-003
    Significant Deficiency Repeat
  • 2729 2023-003
    Significant Deficiency Repeat
  • 2730 2023-003
    Significant Deficiency Repeat
  • 579168 2023-003
    Significant Deficiency Repeat
  • 579169 2023-003
    Significant Deficiency Repeat
  • 579170 2023-003
    Significant Deficiency Repeat
  • 579171 2023-003
    Significant Deficiency Repeat
  • 579172 2023-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $1.72M
10.553 School Breakfast Program $455,070
84.367 Improving Teacher Quality State Grants $165,504
10.555 National School Lunch Program $82,290
84.358 Rural Education $65,708
84.424 Student Support and Academic Enrichment Program $43,670
10.559 Summer Food Service Program for Children $38,064
84.027 Special Education_grants to States $24,541
84.425 Education Stabilization Fund $10,620
10.649 Pandemic Ebt Administrative Costs $4,396
84.173 Special Education_preschool Grants $11