Finding Text
Federal Agency: U.S. Department of Agriculture
Federal Program Name: Child Nutrition Cluster
Assistance Listing Number: 10.CNC
Pass-Through Agency: Wisconsin Department of Public Institution
Pass-Through Numbers: 2023-135901-SB-546; 2023-135901-NSL-547; 2023-135901-DPI-SK_NSL-561
Award Period: 07/01/2022 – 06/30/2023
Compliance Requirement Affected: Procurement and Suspension and Debarment
Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matter
Criteria or Specific Requirement: 2 CFR 200.320 Methods of Procurement outlines various purchasing methods thresholds and requirements including, but not limited to, guidance with regards to when a non-federal entity is required to obtain rate quotations and sealed bids. Additionally, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred.
Condition: The District did not have a procurement or suspension and debarment policy that met the requirements of the Uniform Guidance at the time the transactions took place.
Context: During our testing of procurement transactions of the program we noted that the District is not following federal procurement requirements, as it relates to conflict of interest. In addition, during our testing of suspension and debarment, we noted that the District is not following federal suspension and debarment requirements nor does the currently policy include procedures relating to suspension and debarment.
Cause: The District has not implemented procurement or suspension and debarment policies that meet the requirements of the Uniform Guidance.
Effect: Implementing and consistently following procurement policies that meet the requirements of Uniform Guidance are required and are designed to ensure fiscal responsibility, objective contractor performance and elimination of unfair completive advantage while spending federal funds. Additionally, not verifying that an entity is debarred or suspended could result in entering into covered transactions with debarred or suspended vendors.
Recommendation: We recommend the District review and update the procurement and suspension and debarment policies. We also recommend that the District ensure that approved policies that meet federal requirements are consistently followed.
Views of Responsible Officials and Planned Corrective Action: There is no disagreement with the finding. Management has reviewed and updated the procurement and suspension and debarment policy to be in compliance with Uniform Guidance.