Finding Text
2022 ? 003 ? Child Nutrition Cluster Procurement, Suspension and Debarment Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Federal Award Identification Number and Year: FY 21 and FY 22 Pass-Through Entity: Indiana Department of Education Pass-Through Entity Number: FY 2020-2021, FY 2021-2022 Award Period: July 1, 2020 through June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance, Material Noncompliance (Qualified Opinion). Criteria: ?The non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in 200.317 through 200.327.? Condition: During our testing, we noted for 2 out of the 6 contracts sampled that the School Corporation was unable to provide a contract between the vendor and the school resulting in questioned costs for the amount of the contract paid during the period. Questioned costs: Known - $616,301.95. Likely - $713,408.55 Context: Using a statistically valid sample, CLA selected 6 covered transactions for testing. 2 of the samples selected did not have a contract between the vendor and the school. Cause: Improper understanding and implementation of existing policies. Effect: Noncompliance with internal policies and material noncompliance with the federal award. Contracts could be entered into with suspended or debarred vendors leading to noncompliance. Repeat Finding: No. Recommendation: We recommend the Brownsburg Community School Corporation CLA recommends increased training for those individuals involved in procurement and contract approval process and enforcement of existing policies. View of Responsible Officials: There is no disagreement with the audit finding.