Finding 48715 (2022-001)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-01-12
Audit: 49464
Organization: Carmel Unified School District (CA)

AI Summary

  • Core Issue: The District lacks adequate internal controls to verify that vendors are not suspended or debarred, which is a compliance requirement.
  • Impacted Requirements: Compliance with 2 CFR Part 200 regarding suspension and debarment of vendors.
  • Recommended Follow-Up: Implement procedures to ensure a thorough review process for vendor status to prevent future compliance issues.

Finding Text

Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.555 Pass-Through Agency: California Department of Education Award Period: July 1, 2021 through June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of suspension and debarment. The District should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted the District did not have adequate internal controls designed to ensure vendors were not suspended or debarred for 2 out of the 5 vendors tested. Questioned costs: None as none of the vendors selected were suspended or debarred. Context: There were a total of 7 vendors with contracts equaling or exceeding $25,000. Cause: The District was unaware that vendors were not being reviewed to ensure they were not suspended or debarred. This was a result of turnover in the department. Effect: The auditor noted no instances of vendors identified as suspended or debarred; however, the lack of internal controls over these compliance requirements resulted in noncompliance. Repeat Finding: No. Recommendation: We recommend the District design procedures and controls to ensure an adequate review process is in place to determine vendors are not suspended or debarred.

Corrective Action Plan

Views of responsible officials and planned corrective actions: The District will implement procedures in the 22-23 fiscal year to correct this compliance issue. District staff will follow procedures to verify that the District is not using vendors who are either suspended or debarred by the federal government, using the SAM.gov website. The following language has been communicated to CUSD staff and added to the District?s Business Users Guidelines Document. To process a requisition using Federal Monies (resource codes 3000-5999), staff shall perform the following procedures: Non-federal entities are subject to the non-procurement debarment and suspension regulations. These regulations restrict awards, sub-awards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities (2 CFR 200.213). To check if a vendor is disbarred or suspended: a. Go to the website at www.sam.gov (you do not need to register). b. Verify the status of the vendor by performing the following: ? Click on the search records icon on the top left. ? Use the "quick search" box and enter the vendor's name (leave remaining classifications blank) c. Click search at the bottom of the web page. d. Print a copy of the search results including if results were not found. e. If the vendor is not debarred, note on the requisition and / or contract if applicable, that the vendor has been checked in the SAM system and is not debarred. Include a copy of the printed page with the requisition. f. If a vendor search produces no results, print the page and attach as supporting documentation to the requisition. Note on the requisition and / or contract is applicable that the vendor has been checked in the SAM system. ? The District is prohibited from doing business with a vendor or individual that is debarred or suspended.

Categories

Procurement, Suspension & Debarment Allowable Costs / Cost Principles School Nutrition Programs Significant Deficiency

Other Findings in this Audit

  • 50837 2022-001
    Significant Deficiency
  • 50838 2022-001
    Significant Deficiency
  • 625157 2022-001
    Significant Deficiency
  • 627279 2022-001
    Significant Deficiency
  • 627280 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.555 Seamless Summer Feeding Option (ssfo) $1.48M
84.425 Covid-19 Elementary and Secondary School Emergency Relief III (esser Iii) Fund $1.30M
84.027 Special Education - Idea Basic Local Assistance Entitlement $384,550
84.010 Title I - Basic Grants $375,505
84.425 Covid-19 Expanded Learning Opportunities (elo) Grant: Esser III State Reserve, Learning Loss $252,274
84.425 Covid-19 Expanded Learning Opportunities (elo) Grant Esser II State Reserve $224,496
93.323 Covid-19 Elc Covid Testing $153,948
84.425 Covid-19 Expanded Learning Opportunities (elo) Grant: Esser III State Reserve, Emergency Needs $146,345
84.367 Title II - Supporting Effective Instruction $63,490
84.425 Covid-19 Expanded Learning Opportunities (elo) Grant Geer II $51,524
10.555 Commodities $51,428
84.425 Covid-19 Elementary and Secondary School Emergency Relief II (esser Ii) Fund $49,784
93.575 Covid-19 Child Development: Coronavirus Response and Relief Supplemental Appropriations (crrsa) One-Time Stipend $13,781
84.048 Vocational Programs $13,496
84.027 Special Education - Idea Basic Local Assistance Private Schools $12,611
10.555 Meal Supplement $7,757
84.424 Title IV - Student Support and Academic Enrichment $5,263
84.173 Grants to States (idea, Part B) - Preschool Grants $2,863
84.173 Preschool Staff Development $40
84.425 Covid-19 Elementary and Secondary School Emergency Relief (esser) Fund $14