Finding 385002 (2023-003)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-03-26

AI Summary

  • Core Issue: The School Board failed to document vendor reviews for contracts over $25,000, risking non-compliance with federal suspension and debarment requirements.
  • Impacted Requirements: Compliance with 2 CFR sections 180.220 and 180.995, which mandate verification of vendor eligibility to receive federal funds.
  • Recommended Follow-Up: Implement monitoring procedures for vendor eligibility checks and maintain supporting documentation to ensure compliance moving forward.

Finding Text

Reference # and title: 2023-003 Internal Control over Procurement, Suspension and Debarment Federal program and specific federal award identification: AL Number Award Year FEDERAL GRANTER/ PASS THROUGH GRANTOR/PROGRAM NAME United States Department of Agriculture; passed through Louisiana Department of Education Child Nutrition Cluster: School Breakfast Program AL #10.553 2023 National School Lunch Program AL #10.555 2023 Criteria or specific requirement: According to 2 CFR sections 180.220 and 180.995, the School Board is required to review any vendors they are contracting with for goods and services that are expected to equal or exceed $25,000 to ensure that the vendor is not suspended or debarred from federal funds. This verification can be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA), (2) collecting a certification from the vendor or (3) adding a clause or condition to the contract with the vendor. Condition found: In testing a sample of two vendors to determine if the School Board either obtained a suspension and debarment certification or reviewed the excluded parties listing, it was noted that the School Board could not provide supporting documentation for one of the vendors. However, when the auditor reviewed for the vendor, it was noted that vendor was not suspended or debarred from receiving federal funds. Context: This finding appears to be systemic. Possible asserted effect (cause effect): Cause: The auditor was unable to determine the cause. Effect: The School Board did not meet all compliance requirements related to related to procurement, suspension and debarment. Recommendations to prevent future occurrences: The School Board should establish monitoring procedures over vendors that are expected to equal or exceed $25,000 for the fiscal year to ensure the vendor is not suspended nor debarred. The supporting documentation for their review should also be maintained. Origination date and prior year reference (if applicable): This finding originated fiscal year ended June 30, 2023. View of responsible official: It was determined that the CNP Supervisor did not maintain the necessary documentation to verify the eligibility status of all vendors related to the suspension and debarment verification process as required. The CNP Bookkeeper resigned in October 2023 and the Supervisor retired in December 2023. The Lincoln Parish School Board hired a new CNP Supervisor in November 2023, and a new CNP secretary/bookkeeper in December 2023

Categories

Procurement, Suspension & Debarment School Nutrition Programs

Other Findings in this Audit

  • 384995 2023-002
    Material Weakness
  • 384996 2023-002
    Material Weakness
  • 384997 2023-002
    Material Weakness
  • 384998 2023-002
    Material Weakness
  • 384999 2023-003
    Significant Deficiency
  • 385000 2023-003
    Significant Deficiency
  • 385001 2023-003
    Significant Deficiency
  • 961437 2023-002
    Material Weakness
  • 961438 2023-002
    Material Weakness
  • 961439 2023-002
    Material Weakness
  • 961440 2023-002
    Material Weakness
  • 961441 2023-003
    Significant Deficiency
  • 961442 2023-003
    Significant Deficiency
  • 961443 2023-003
    Significant Deficiency
  • 961444 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $3.81M
10.555 National School Lunch Program $1.80M
10.553 School Breakfast Program $717,111
84.425 Education Stabilization Fund $352,638
84.027 Special Education_grants to States $289,602
84.367 English Language Acquisition State Grants $141,192
84.367 Improving Teacher Quality State Grants $126,079
93.434 Every Student Succeeds Act/preschool Development Grants $105,995
66.039 National Clean Diesel Emissions Reduction Program $100,000
84.358 Rural Education $96,597
93.575 Child Care and Development Block Grant $82,857
84.048 Career and Technical Education -- Basic Grants to States $76,089
32.009 Emergency Connectivity Fund Program $73,500
84.173 Special Education_preschool Grants $26,240
10.558 Child and Adult Care Food Program $25,940
84.371 Striving Readers $21,400
84.365 English Language Acquisition State Grants $12,903
84.424 Student Support and Academic Enrichment Program $10,000
10.579 Child Nutrition Discretionary Grants Limited Availability $8,920
10.649 Pandemic Ebt Administrative Costs $3,256
84.011 Migrant Education_state Grant Program $1,202
84.365 Student Support and Academic Enrichment Program $833