Finding 957641 (2023-001)

Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Federal Agency: U.S. Department of Education Pass-Through Entity: Kansas Department of Education Federal Program: Special Education Cluster (IDEA) (ALN 84.027A/84.173A) Compliance Requirement: Suspension and Debarment Condition: For two of the two vendors tested, there was no evidence that the District considered suspension and debarment requirements prior to entering into a covered transaction. Questioned Costs: None Criteria: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. "Covered transactions" include those procurement contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR Section 180.220. All non-procurement transactions entered into by a recipient (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR Section 180.215. 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, as defined in 2 CFR Section 180.995 and agency-adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transactions. When entering into a covered transaction, determining if the entity or person is excluded or disqualified can be done by one of the following: (1) checking the Government- wide System for Award Management Exclusions (SAM) to determine if an entity is debarred or suspended, (2) collecting a certification from that entity, or (3) adding a clause or condition to the covered transaction. Cause: The District was aware of the requirement and did check the Government-wide System for Award Management but did not retain proof of the verification. Effect: The District may unintentionally enter into a covered transaction with a suspended or debarred party. Recommendation: We recommend that the District develop a more robust internal control that monitors the selection of vendors who are funded with federal grants.