Finding 50900 (2022-001)

-
Requirement
J
Questioned Costs
-
Year
2022
Accepted
2023-10-01

AI Summary

  • Core Issue: Documentation for verifying vendor suspension and debarment status was missing for five vendors over $25,000.
  • Impacted Requirements: Internal controls failed to ensure that vendor status was confirmed before grant claims were submitted.
  • Recommended Follow-up: Implement a system to maintain evidence of vendor verification prior to grant claim submissions.

Finding Text

Reference Number: 2022-001 United States Department of Agriculture Federal ID# & Program Name: 10.553 & 10.555 Child Nutrition Cluster Description: Suspension and Debarment Verification Criteria: Internal controls require that management confirm vendors suspension and debarment status prior to vendors being included on grant claims. Condition: For five vendors that were awarded more than $25,000, documentation supporting that confirmation of vendor status occurred, prior to grant claim submission, was not maintained. Cause: Inadequate controls to ensure verification of vendors that are not suspended or debarred are properly maintained. Effect: Determining that adequate controls are place for testing the suspension and debarment status of vendors was unverifiable for all five vendors. Auditors? Recommendation: The Organization should maintain evidence that vendors were verified prior to the submission of grant claims. Corrective Action Plan: See attachment for Organization?s corrective action plan.

Corrective Action Plan

THE ORGANIZATION WILL MAINTAIN AND DOWNLOAD THE EXCLUSIONS EXTRACT DATA PACKAGE FROM SAM.GOV WEBSITE VERIFYING THAT VENDORS PAID OVER $25,000 ON A FEDERAL GRANT WERE NOT INCLUDED IN THE PACKAGE. WE WERE NOT ABLE TO COMPLETE THE CORRECTIVE ACTION PRIOR TO JUNE 30, 2023, AS THIS FINDING WAS JUST BROUGHT TO OUR ATTENTION. ANTICIPATED CORRECTIVE ACTION PLAN COMPLETION DATE: JUNE 30, 2024. FOR ADDITIONAL INFORMATION REGARDING THIS FINDING PLEASE CONTACT ROSANA MATEO.

Categories

Procurement, Suspension & Debarment School Nutrition Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
32.009 Emergency Connectivity Fund Program $572,320
10.553 School Breakfast Program $332,725
10.558 Child and Adult Care Food Program $57,078
10.555 National School Lunch Program $41,651