Finding Text
Federal Program: U.S. Department of Agriculture passed through Missouri Department of Elementary and Secondary Education: Child Nutrition Cluster - School Breakfast Program (10.553) and National School Lunch Program (10.555); U.S. Department of Education passed through Missouri Department of Elementary and Secondary Education: Special Education Cluster ? Special Education ? Grants to States (84.027) and Special Education ? Preschool Grants (84.173). Criteria: When a sub-recipient of federal awards uses federal money to acquire goods and services expected to cost more than $25,000, the sub-recipient must determine if the vendor is suspended, debarred, or otherwise excluded from doing business with the federal government. Condition: The district purchased goods from four vendors totaling greater than $25,000 that required the District to determine the vendor?s status with the federal government. Six vendors were verified for the child nutrition cluster, however this was not done until June 1, or the eleventh month of the fiscal year. One vendor was required to be verified from the special education cluster but this verification was not done. The vendors were, in fact, not excluded parties. The District needs to strengthen their internal controls in place to make sure all vendors are verified before the disbursements are made. Cause: One person was responsible for checking vendor status. The task was overlooked until near the end of the year for the child nutrition cluster and it was overlooked that there was an applicable vendor for the special education cluster. Effect: Even though the District did comply with the requirements not to purchase goods with excluded parties, failing to check the excluded parties list increases the risk that the District will make payments to ineligible vendors and potentially claim inappropriate reimbursement. Questioned Costs: None. Context: Payments to eligible vendors of the child nutrition cluster totaled $1,585,889. Payments to the eligible vendor of the special education cluster totaled $122,600. Repeat Finding: Yes. Recommendation: We recommend the District verify a vendor?s status by checking the System for Award Management (SAM) maintained by the General Services Administration before making purchases expected to exceed $25,000 and paid with federal grants. Views of Responsible Officials: The District will verify all vendors? status using the System for Award Management (SAM) maintained by the General Services Administration before making purchases expected to exceed $25,000.