Finding 508037 (2023-001)

Significant Deficiency Repeat Finding
Requirement
I
Questioned Costs
$1
Year
2023
Accepted
2024-11-15
Audit: 328582
Organization: Town of Clinton (MA)

AI Summary

  • Core Issue: The Town failed to conduct a proper competitive procurement process for school lunch food products, violating federal regulations.
  • Impacted Requirements: Non-compliance with 2 CFR sections 200.319 and 200.214 regarding competition and vendor eligibility.
  • Recommended Follow-up: The Town should establish procedures to ensure competitive procurements and verify vendor suspension and debarment for all relevant purchases.

Finding Text

2023-001 U.S. Department of Agriculture Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Child Nutrition Cluster – ALN 10.553, 10.555 & 10.559 Significant Deficiency in Internal Controls Over Compliance and Compliance Finding Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Per 2 CFR section 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: A competitive procurement process, which includes suspension and debarment certifications, was not properly performed by the Town for the purchase of school lunch food products. Cause: The Town utilized vendors that were previously contracted in prior years without performing a current procurement and suspension and debarment verification. Effect: The Town is not in compliance with Federal procurement or suspension and debarment requirements. Questioned Costs: $453,359 Repeat Finding from Prior Year: Yes; Finding 2022-001 Recommendation: The Town should implement procedures to perform competitive procurements, which include suspension and debarment certification, for all applicable purchases of goods and services. Views of Responsible Official: Management agrees with the finding.

Corrective Action Plan

2023-001: Significant Deficiency in Internal Controls and Compliance Finding -Child Nutrition Cluster ALN (10.553, 10.555,10.559): A competitive procurement process, which includes suspension and debarment certifications, was not properly performed by the Town for the purchase of school lunch food product. (Questioned Costs: $453,359) The Town of Clinton/School Department will maintain proper procurement procedures in compliance with Local, State and Federal laws and regulations. State procurement laws (MGL Chapter 30B for Goods and Services and MGL Chapter 149 Construction) are followed however the district is aware of the federal requirements. When there are exemptions from state procurement laws, or when federal regulations are stricter the district will use the strictest rules, under 2 CFR 200.318-327. These procedures have been updated in the Financial Procedures Manual (pages 231-240, under Section II Procurement System). The Town of Clinton/School Department has expanded membership with French River Education Center – Purchasing Cooperative to include several school lunch food products. The Town of Clinton/School Department will utilize two methods to determine if a potential vendor has been suspended or disbarred. Prior to approving a requisition for a contracted service in excess of $25,000 funded by a Federal grant, district will verify Sam.gov and will require the vendor to sign a Vendor Compliance Certification.

Categories

Questioned Costs Procurement, Suspension & Debarment

Other Findings in this Audit

  • 508038 2023-001
    Significant Deficiency Repeat
  • 508039 2023-001
    Significant Deficiency Repeat
  • 508040 2023-001
    Significant Deficiency Repeat
  • 508041 2023-002
    Significant Deficiency
  • 508042 2023-002
    Significant Deficiency
  • 508043 2023-002
    Significant Deficiency
  • 508044 2023-002
    Significant Deficiency
  • 508045 2023-003
    - Repeat
  • 508046 2023-003
    - Repeat
  • 508047 2023-003
    - Repeat
  • 508048 2023-003
    - Repeat
  • 508049 2023-003
    - Repeat
  • 1084479 2023-001
    Significant Deficiency Repeat
  • 1084480 2023-001
    Significant Deficiency Repeat
  • 1084481 2023-001
    Significant Deficiency Repeat
  • 1084482 2023-001
    Significant Deficiency Repeat
  • 1084483 2023-002
    Significant Deficiency
  • 1084484 2023-002
    Significant Deficiency
  • 1084485 2023-002
    Significant Deficiency
  • 1084486 2023-002
    Significant Deficiency
  • 1084487 2023-003
    - Repeat
  • 1084488 2023-003
    - Repeat
  • 1084489 2023-003
    - Repeat
  • 1084490 2023-003
    - Repeat
  • 1084491 2023-003
    - Repeat

Programs in Audit

ALN Program Name Expenditures
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $150,280
84.010 Title I Grants to Local Educational Agencies $146,641
10.553 School Breakfast Program $145,974
84.027 Special Education Grants to States $95,034
21.027 Coronavirus State and Local Fiscal Recovery Funds $75,572
10.555 National School Lunch Program $57,265
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $13,305
97.047 Bric: Building Resilient Infrastructure and Communities $12,850
84.048 Career and Technical Education -- Basic Grants to States $12,324
84.173 Special Education Preschool Grants $10,617
10.559 Summer Food Service Program for Children $7,759
84.425 Education Stabilization Fund $5,640
84.365 English Language Acquisition State Grants $5,472
45.310 Grants to States $4,200
84.424 Student Support and Academic Enrichment Program $2,251