Finding 504656 (2024-005)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2024-11-05
Audit: 327250
Organization: Hesperia Community Schools (MI)

AI Summary

  • Core Issue: The District failed to document the vendor selection process and check for suspension or debarment for two out of three vendors tested.
  • Impacted Requirements: This noncompliance affects adherence to internal procurement policies and federal guidelines, risking payments to ineligible vendors.
  • Recommended Follow-Up: Establish clear policies to retain procurement documentation and ensure all vendors over $25,000 are checked against the suspension list at www.sam.gov.

Finding Text

2024-005 - Lack of Documentation for Vendor Selection Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Controls over Compliance (Procurement, and Suspension and Debarment). Program. Child Nutrition Cluster; U.S. Department of Agriculture; Assistance Listing Numbers 10.553, 10.555, 10.559 and 10.582; Passed through Michigan Department of Education (MDE); All project numbers. Criteria. A recipient of federal awards is required to follow their own internal procurement policies, and to determine that vendors being paid with federal funds are not suspended or debarred from doing business with the government. Suspension and debarment procedures are required whenever the amount disbursed to a single vendor in a given fiscal year is expected to be at least $25,000. Condition. Management was not able to provide us with documentation of the procurement process or evidence of checking for suspension and debarment for two of the three vendors selected for testing. Cause. The cause of this condition appears to be that Management was not fully versed in the requirements related to procurement, and suspension and debarment. Effect. As a result of this condition, the District was exposed to the risk that disbursements of federal awards could be made to vendors suspended or debarred by the federal government. The District also did not fully comply with the requirements of the Uniform Guidance. Questioned Costs. No costs are required to be questioned as a result of this finding as none of the vendors involved were actually suspended or debarred. Recommendation. We recommend that the District implement policies and procedures to assure that documentation is retained related to compliance with internal procurement policies. We further recommend that the District implement a procedure that requires all vendors, expected to be paid more than $25,000 , be checked for active exclusions at www.sam.gov. View of Responsible Officials. We concur with the audit assessment regarding this matter.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 504655 2024-005
    Significant Deficiency
  • 504657 2024-005
    Significant Deficiency
  • 504658 2024-005
    Significant Deficiency
  • 504659 2024-005
    Significant Deficiency
  • 504660 2024-005
    Significant Deficiency
  • 504661 2024-005
    Significant Deficiency
  • 504662 2024-005
    Significant Deficiency
  • 504663 2024-005
    Significant Deficiency
  • 1081097 2024-005
    Significant Deficiency
  • 1081098 2024-005
    Significant Deficiency
  • 1081099 2024-005
    Significant Deficiency
  • 1081100 2024-005
    Significant Deficiency
  • 1081101 2024-005
    Significant Deficiency
  • 1081102 2024-005
    Significant Deficiency
  • 1081103 2024-005
    Significant Deficiency
  • 1081104 2024-005
    Significant Deficiency
  • 1081105 2024-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $273,607
84.425 Education Stabilization Fund $259,063
10.553 School Breakfast Program $165,315
84.027 Special Education Grants to States $136,531
84.424 Student Support and Academic Enrichment Program $28,687
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $28,299
84.358 Rural Education $24,917
10.582 Fresh Fruit and Vegetable Program $13,602
10.185 Local Food for Schools Cooperative Agreement Program $11,443
10.665 Schools and Roads - Grants to States $9,438
10.579 Child Nutrition Discretionary Grants Limited Availability $6,345
10.559 Summer Food Service Program for Children $3,047
10.558 Child and Adult Care Food Program $1,287
10.555 National School Lunch Program $570