Finding 503274 (2024-004)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2024-10-21

AI Summary

  • Core Issue: The District is not following its own procurement procedures for the Child Nutrition program and is failing to verify vendor eligibility for Federal assistance.
  • Impacted Requirements: Non-compliance with 2 CFR Section 200.318 and Section 200.213, which could lead to selecting ineligible vendors or overpaying for services.
  • Recommended Follow-Up: The District should review and adhere to procurement requirements and ensure vendor eligibility checks are completed before fund disbursement.

Finding Text

Significant Deficiencies 2024-004 Child Nutrition Cluster – Procurement Information on Federal Program: U.S. Department of Agriculture Child Nutrition Cluster (National School Breakfast Program, School Lunch Program, School Lunch Program Supply Chain- COVID 19 Assistance Listing numbers 10.553 and 10.555) 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 various vendors, we noted that the District is not following its procurement procedures for the Child Nutrition program purchases and is not verifying the eligibility of vendors to participate in Federal assistance programs on an annual basis. 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 performed 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 Costs: None Perspective Information: As part of required procurement testing, a review of vendors charged to the school lunch fund and therefore represented purchases with federal dollars was performed. Of the District’s vendors charged to the fund, none were suspended or debarred from participation in Federal assistance programs or activities. Repeat Finding: No Recommendation: We recommend that the District review the requirements of 2 CFR Section 200.213 and ensure that their procurement procedures are being followed and 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 will review the requirements of 2 CFR Section 200.213 and ensure that the procurement procedures are being followed and perform a review of the eligibility of potential vendors to participate in Federal assistance programs or activities prior to disbursing funds to the vendor. This was identified as part of the Administrative Review conducted in November 2023 by the NYS Education Department (Child Nutrition Program). The District has already started the process of working on corrective action.

Corrective Action Plan

The District will review the requirements of 2 CFR Section 200.213 and ensure that procurement procedures are being followed and perform a review of the eligibility of potential vendors to ensure they are eligible to participate in Federal assistance programs.

Categories

Procurement, Suspension & Debarment Eligibility School Nutrition Programs

Other Findings in this Audit

  • 503275 2024-004
    Significant Deficiency
  • 503276 2024-004
    Significant Deficiency
  • 503277 2024-004
    Significant Deficiency
  • 1079716 2024-004
    Significant Deficiency
  • 1079717 2024-004
    Significant Deficiency
  • 1079718 2024-004
    Significant Deficiency
  • 1079719 2024-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $143,985
10.553 School Breakfast Program $93,765
10.555 National School Lunch Program $53,454
84.027 Special Education Grants to States $45,984
84.425 Education Stabilization Fund $34,800
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $23,890
84.173 Special Education Preschool Grants $16,926
84.424 Student Support and Academic Enrichment Program $10,000