Finding 613874 (2022-001)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-03-26

AI Summary

  • Core Issue: The District failed to verify a vendor's suspension or debarment status for a transaction over $25,000.
  • Impacted Requirements: Compliance with 2 CFR Section 180.300 was not met, risking payments to ineligible vendors.
  • Recommended Follow-Up: Implement checks against the Excluded Parties List System or obtain certifications for any vendor exceeding $25,000 annually.

Finding Text

Criteria: According to 2 CFR Section 180.300, when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity is not suspended, debarred or otherwise excluded. Condition: The District had transactions in excess of $25,000 with one vendor that they did not check for suspension and debarment or have a signed certification. Questioned Costs: None. Context: Total payments to the vendor were $110,248 as of June 30, 2022. Effect: The District was at risk of making material payments to vendors who are not allowed to do business with the federal government. There was no noncompliance, but there was no internal control in place to prevent noncompliance. Cause: The District was not aware of this requirement. Recommendation: We recommend the District check the Excluded Parties List System or collect certifications from the entity for any vendor that the District expects to pay more than $25,000 for the year. Management's Response: We were not aware of this requirement, but we will ensure that we comply going forward.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 37426 2022-001
    Material Weakness
  • 37427 2022-002
    -
  • 37428 2022-003
    Significant Deficiency
  • 37429 2022-001
    Material Weakness
  • 37430 2022-002
    -
  • 37431 2022-003
    Significant Deficiency
  • 37432 2022-001
    Material Weakness
  • 37433 2022-002
    -
  • 37434 2022-003
    Significant Deficiency
  • 37435 2022-001
    Material Weakness
  • 37436 2022-002
    -
  • 37437 2022-003
    Significant Deficiency
  • 37438 2022-001
    Material Weakness
  • 37439 2022-002
    -
  • 37440 2022-003
    Significant Deficiency
  • 37441 2022-002
    -
  • 37442 2022-007
    Material Weakness
  • 37443 2022-002
    -
  • 37444 2022-007
    Material Weakness
  • 37445 2022-002
    -
  • 37446 2022-007
    Material Weakness
  • 37447 2022-002
    -
  • 37448 2022-007
    Material Weakness
  • 613868 2022-001
    Material Weakness
  • 613869 2022-002
    -
  • 613870 2022-003
    Significant Deficiency
  • 613871 2022-001
    Material Weakness
  • 613872 2022-002
    -
  • 613873 2022-003
    Significant Deficiency
  • 613875 2022-002
    -
  • 613876 2022-003
    Significant Deficiency
  • 613877 2022-001
    Material Weakness
  • 613878 2022-002
    -
  • 613879 2022-003
    Significant Deficiency
  • 613880 2022-001
    Material Weakness
  • 613881 2022-002
    -
  • 613882 2022-003
    Significant Deficiency
  • 613883 2022-002
    -
  • 613884 2022-007
    Material Weakness
  • 613885 2022-002
    -
  • 613886 2022-007
    Material Weakness
  • 613887 2022-002
    -
  • 613888 2022-007
    Material Weakness
  • 613889 2022-002
    -
  • 613890 2022-007
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $152,585
10.553 School Breakfast Program $97,265
84.358 Rural Education $27,861
10.555 National School Lunch Program $26,458
84.027 Special Education_grants to States $24,363
84.367 Improving Teacher Quality State Grants $18,280
93.778 Medical Assistance Program $6,955
84.425 Education Stabilization Fund $6,401
15.226 Payments in Lieu of Taxes $4,052
84.173 Special Education_preschool Grants $2,432
10.649 Pandemic Ebt Administrative Costs $614