Finding 638577 (2022-001)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-03-27
Audit: 57076
Organization: Town of Chelmsford (MA)

AI Summary

  • Core Issue: The Town failed to document vendor verification against suspension or debarment from federal assistance programs.
  • Impacted Requirements: Compliance with 2 CFR Part 200.214, which mandates verification of vendor eligibility for federal funding.
  • Recommended Follow-Up: Implement annual documentation procedures to ensure all vendors are verified as not suspended or debarred.

Finding Text

2022-001 Federal Agency: U.S. Department of Agriculture Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: Massachusetts Department of Elementary & Secondary Education Pass-Through Number(s): 09-056 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance Compliance Requirement: Suspension and Debarment Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Title 2 Part 200.214 states that nonfederal entities are subject to the nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. These regulations restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Nonfederal entities must verify that contracts with certain parties are not debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition and Context: For all vendors in our statistically valid sample, the Town did not document its verification that vendors are not suspended or debarred from participation in Federal assistance programs or activities. The vendors were not suspended or debarred. Questioned Costs: None. Cause: Procedures were not in place to document the verification that all vendors were not suspended or debarred from participation in Federal assistance programs or activities. Effect: While this did not occur in the instances identified in this finding, lack of verification of vendors? debarment or suspension status could cause federal grant funds to be expended with vendors that are excluded from participation in Federal assistance programs or activities. Repeat Finding: No. Recommendation: We recommend to annually (at a minimum) document the verification that all vendors are not suspended or debarred from participation in Federal assistance programs or activities. Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 62135 2022-001
    Significant Deficiency
  • 62136 2022-001
    Significant Deficiency
  • 62137 2022-001
    Significant Deficiency
  • 638578 2022-001
    Significant Deficiency
  • 638579 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.027 Special Education_grants to States $1.37M
84.425 Education Stabilization Fund $715,907
21.027 Coronavirus State and Local Fiscal Recovery Funds $646,208
10.553 School Breakfast Program $624,856
21.019 Coronavirus Relief Fund $358,433
84.010 Title I Grants to Local Educational Agencies $264,321
84.173 Special Education_preschool Grants $199,865
10.555 National School Lunch Program $138,339
84.367 Improving Teacher Quality State Grants $77,297
97.044 Assistance to Firefighters Grant $46,357
84.365 English Language Acquisition State Grants $28,846
97.042 Emergency Management Performance Grants $9,489