Finding Text
2023-004 Child Nutrition Suspension and Debarment
Federal Agency: U.S. Department of Agriculture
Federal Program Title: Child Nutrition Cluster
Assistance Listing Number: 10.553, 10.555
Federal Award Identification Number and Year: Unknown
Pass-Through Agency: Wisconsin Department of Public Instruction
Pass-Through Entity Identifying Number: 2023-371561-DPI-SB-546, 2023-371561-DPI-NSL-547
Award Period: 7/1/2022-6/30/23
Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matter
Criteria or Specific Requirement: CFR Section 200.214 requires non-federal entities to follow suspension and debarment regulations outlined in 2 CFR part 180. When a nonfederal entity enters into a covered transaction with an entity at a lower tier, the nonfederal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction.
Compliance Requirements: Suspension and Debarment.
Condition: The District's search for suspension and debarment was focused on common vendors that the District used often and consistently rather than all vendors that met the covered transaction requirements.
Questioned Costs: None.
Context: One out of the two vendors in our sample did not have any review completed by the District to ensure they were not suspended or debarred when initiating covered transactions in the current year.
Cause: The District was unclear on when exactly certain transactions and vendors needed to be verified.
Effect: District could contract with a vendor that has been suspended or debarred from receiving federal funds.
Repeat Finding: No.
Recommendation: We recommend the District review and update policies and procedures over review of certain transactions to ensure that all federal grants with covered transactions have vendors reviewed for suspension and debarment status.
Views of Responsible Officials: There is no disagreement with the audit finding.