Finding Text
2023-005 Procurement/Suspension and Debarment
Federal agency: U.S. Department of Agriculture
Federal program title: Child Nutrition Cluster
Assistance Listing Number: 10.553, 10.555, and 10.559
Federal award identification number and year: 212MN061N1199 - 2023
Pass-Through Agency: Minnesota Department of Education
Pass-Through Number(s): 1-0381-000
Award Period: July 1, 2022 - June 30, 2023
Type of Finding:
• Material Weakness in Internal Control over Compliance and Other Matters
Criteria or Specific
Requirement: Procurement standards require a policy in place to be followed to ensure entities are properly procuring goods and services and to ensure vendors and contractors are not suspended or debarred.
Condition: During procurement and suspension and debarment testing, it was noted that the District did not go out for bid at the expiration of their previous contract, therefore not following proper procurement standards.
Questioned Costs: Unknown.
Context: The District did not go out for bid at the expiration of their previous contract.
Cause: The District did not follow the process in place.
Effect: Lack of control to procure transactions resulted in the District to be out of compliance with federal procurement requirements and/or pay suspended or debarred vendors or contractors.
Repeat Finding: Yes, 2022-005.
Recommendation: We recommend the District complete the proposal process when contracts expire to ensure they are in compliance with procurement requirements.
Views of
Responsible
Officials: There is no disagreement with the audit finding.