Finding Text
Program: Child and Adult Care Food Program
Assistance Listing Number: 10.558
Federal Agency: U.S. Department of Agriculture
Pass-Through Grantor: New York State Department of Health
Award Identification: 03256 Year 2022
Criteria: Internal Controls Over Suspension and Debarment– The organization should have procedures in place to ensure that providers are not suspended or debarred or otherwise excluded from participating in the federal program as required by 2 CFR Section 180 Subpart C.
Condition: During the course of our audit procedures performed on suspension and debarment, it was noted that evidence of verification that providers are not suspended or debarred could not be produced.
Questioned costs: None.
Context: Management was unable to provide documentation to support verification that providers are not suspended or debarred for any of the 43 providers during 2022.
Effect: We were unable to verify internal controls over suspension and debarment were in place and functioning effectively.
Cause: The Settlement did not have internal controls in place related to verification of suspension and debarment.
Repeat finding: This is not a repeat finding.
Recommendation: We recommend that the organization strengthen internal controls surrounding the verification that providers are not suspended or debarred by implementing a policy of formal documentation of steps followed to obtain such verification.
Views of responsible officials and planned corrective actions: The Settlement agrees with the finding.
The organization will incorporate debarment checks on providers both at enrollment into the program and annually beginning in June 2024. Debarment checks will be included in the policies and procedures (updated every January) and discussed with providers. Staff will be trained, and management will oversee the process.