Finding Text
2022-002 Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Numbers: 10.555 and 10.559 Passed Through the Arizona Department of Education Pass Through Number: 7AZ300AZ3 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: Suspension/Debarment - Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Verification that vendors with expenditures expected to equal or exceed $25,000 are not suspended or debarred should be performed prior to entering into the transaction. Condition/Context: The District did not document the verification that vendors with expenditures expected to equal or exceed $25,000 were not suspended or debarred prior to entering into the transaction. Questioned Costs: None. Cause: Management oversight and weakness in internal control. Effect: Noncompliance with suspension/debarment requirements and internal control weakness. However, the three vendors with expenditures greater than $25,000 during the year were not suspended or debarred. Repeat Finding: No. Recommendation: In order to comply with federal regulations and strengthen internal controls over compliance, the District should establish procedures for ensuring the verification that vendors are not suspended or debarred is performed prior to entering into the transaction. Views of Responsible Officials and Planned Corrective Actions: The District concurs with this recommendation and will ensure that suspension/debarment verifications are done prior to entering into transactions and that this verification is properly documented. Contact Person: Angela Terry, Executive Director of Business Services