Finding Text
Procurement, Suspension, and Debarment
Finding Type. Immaterial Noncompliance; Material Weakness in Internal Control over
Compliance
U.S. Department of Agriculture ‐
• Child Nutrition Cluster (ALN 10.553, 10.555, and 10.559); 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 Academy 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 Academy's procurement process, we noted that
one contract file tested had the required bid documentation. However, the Academy did not verify
that the vendor selected for testing was not suspended or debarred.
Cause. The Academy does not have the proper internal controls in place to ensure that all contracts
awarded have complied with MDE and federal requirements.
Effect. The Academy 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 Academy 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 Academy retain documentation of their verification in the bid file.