Finding Text
Procurement, Suspension, and Debarment
Finding Type. Immaterial Noncompliance; Material Weakness in Internal Control over Compliance
U.S. Department of Agriculture ‐
• Education Stabilization Fund (ALN 84.425); Passed through MDE; All project numbers
Criteria. The Michigan Department of Education (MDE) requires that competitive bids be obtained for the procurement of supplies, material and equipment when the total amount of purchases from a single vendor is expected to reach $28,048. The School is also required to document whether a vendor is suspended or debarred from doing business with the Federal government.
Condition. During our audit procedures over the School's procurement process, we noted that one contract file tested had the required bid documentation. However, the School did not verify that the vendor selected for testing was not suspended or debarred.
Cause. The School does not have the proper internal controls in place to ensure that all contracts awarded have complied with MDE and federal requirements.
Effect. The School did not follow requirements to check whether a vendor is suspended or debarred.
Questioned Costs. No costs have been questioned as a result of this finding inasmuch as no disallowed costs were identified.
Recommendation. We recommend that the School verify that any vendors or contractors selected are verified as neither suspended or debarred per the SAM.gov website prior to awarding the bid, and, that the School retain documentation of their verification in the bid file.