Finding 509662 (2024-001)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2024-11-21
Audit: 329290
Organization: Austin Public Schools (MN)

AI Summary

  • Core Issue: The District has a significant deficiency in internal controls regarding vendor reviews for suspension and debarment compliance.
  • Impacted Requirements: The District failed to maintain documentation required by 2 CRF section 180.995, which could lead to improper vendor payments.
  • Recommended Follow-Up: Implement procedures to verify vendor status and train employees on compliance with the UGG policy.

Finding Text

Type of Finding: Significant deficiency in internal control over compliance Other Matters Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-0492-000 Award Period: July 1, 2023 – June 30, 2024 Criteria or Specific Requirement: Per 2 CRF section 180.995, the District should have controls in place to review vendors showing they are not excluded or debarred for participating in procurement transactions that use federal funds. Condition: During suspension and debarment testing, it was noted that the review process was not operating effectively. There was no support maintained for review of certification regarding debarment, suspension, and responsibility. Questioned Costs: None. Context: District was not maintaining documentation of verification as to whether a vendor was suspended or debarred. Cause: Oversight. Effect: Lack of proper documentation of controls over compliance with suspension and dabrment requirement could result in paying suspended or debarred vendors. This could ultimately result in questioned costs. After review of vendors, it was noted that no vendors used were on the suspension or debarment list. Recommendation: We recommend the District implement procedures and controls to ensure vendors are not suspended or debarred. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the finding. Management will train employees on the UGG policy.

Categories

Procurement, Suspension & Debarment Internal Control / Segregation of Duties

Other Findings in this Audit

  • 509659 2024-001
    Significant Deficiency
  • 509660 2024-001
    Significant Deficiency
  • 509661 2024-001
    Significant Deficiency
  • 509663 2024-001
    Significant Deficiency
  • 509664 2024-001
    Significant Deficiency
  • 1086101 2024-001
    Significant Deficiency
  • 1086102 2024-001
    Significant Deficiency
  • 1086103 2024-001
    Significant Deficiency
  • 1086104 2024-001
    Significant Deficiency
  • 1086105 2024-001
    Significant Deficiency
  • 1086106 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $1.25M
10.553 School Breakfast Program $823,826
84.048 Career and Technical Education -- Basic Grants to States $206,336
84.365 English Language Acquisition State Grants $180,062
10.559 Summer Food Service Program for Children $175,719
84.367 Improving Teacher Quality State Grants $153,072
84.424 Student Support and Academic Enrichment Program $71,529
10.555 National School Lunch Program $54,227
16.710 Public Safety Partnership and Community Policing Grants $38,702
84.181 Special Education-Grants for Infants and Families $38,643
84.002 Adult Education - Basic Grants to States $34,987
84.173 Special Education_preschool Grants $25,085
93.575 Child Care and Development Block Grant $19,165
84.027 Special Education_grants to States $13,137
10.185 Local Food for Schools Cooperative Agreement Program $10,000
21.027 Coronavirus State and Local Fiscal Recovery Funds $7,619
84.425 Education Stabilization Fund $500