SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE AND REPORTABLE INCIDENCE OF NONCOMPLIANCE ? U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER ? ALN 10.553, 10.555, AND 10.559 2022-001 Internal Control Over Compliance and Noncompliance With Federal Procurement Requirements Criteria ? 2 CFR ? 200.320 requires Independent School District No. 885 (the District) to establish and maintain effective internal control over compliance with requirements applicable to federal program expenditures, including procurement requirements applicable to child nutrition cluster federal programs. Condition ? During our audit, we noted that the District did not have sufficient controls in place within its child nutrition cluster federal program to ensure compliance with federal procurement requirements related to methods of procurement. Questioned Costs ? $104,423. Context ? For 1 of 25 vendors tested, the District had not awarded a contract based on sealed bids or quotations as required by the Uniform Guidance procurement standards. This was not a statistically valid sample. Repeat Finding ? This is a current year finding. Cause ? This was an oversight by district personnel. The vendor in question is a supplier to the District?s primary food vendor, for which the District did complete an appropriate quote process. However, purchases in excess of the quote threshold were made directly from the supplier, for which no approved quote process had been completed. Effect ? Noncompliance with the procurement requirements could result in the District expending federal funds inappropriately or utilizing vendors that are not eligible to be parties to such transactions, which could be viewed as a violation of the award agreement. Recommendation ? We recommend that the District review its internal control procedures relating to procurement for all federal programs. Internal controls should be in place to ensure compliance with federal procurement procedures, including awarding contracts based on sealed bids or quotations for the purchase of goods or services exceeding applicable federal dollar thresholds. View of Responsible Official and Planned Corrective Actions ? The District agrees with the finding. The District intends to review its procedures relating to procurement for its federal programs and will ensure that bids and/or quotations are obtained when required. The District has separately issued a Corrective Action Plan related to this finding.
SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE AND REPORTABLE INCIDENCE OF NONCOMPLIANCE ? U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER ? ALN 10.553, 10.555, AND 10.559 2022-001 Internal Control Over Compliance and Noncompliance With Federal Procurement Requirements Criteria ? 2 CFR ? 200.320 requires Independent School District No. 885 (the District) to establish and maintain effective internal control over compliance with requirements applicable to federal program expenditures, including procurement requirements applicable to child nutrition cluster federal programs. Condition ? During our audit, we noted that the District did not have sufficient controls in place within its child nutrition cluster federal program to ensure compliance with federal procurement requirements related to methods of procurement. Questioned Costs ? $104,423. Context ? For 1 of 25 vendors tested, the District had not awarded a contract based on sealed bids or quotations as required by the Uniform Guidance procurement standards. This was not a statistically valid sample. Repeat Finding ? This is a current year finding. Cause ? This was an oversight by district personnel. The vendor in question is a supplier to the District?s primary food vendor, for which the District did complete an appropriate quote process. However, purchases in excess of the quote threshold were made directly from the supplier, for which no approved quote process had been completed. Effect ? Noncompliance with the procurement requirements could result in the District expending federal funds inappropriately or utilizing vendors that are not eligible to be parties to such transactions, which could be viewed as a violation of the award agreement. Recommendation ? We recommend that the District review its internal control procedures relating to procurement for all federal programs. Internal controls should be in place to ensure compliance with federal procurement procedures, including awarding contracts based on sealed bids or quotations for the purchase of goods or services exceeding applicable federal dollar thresholds. View of Responsible Official and Planned Corrective Actions ? The District agrees with the finding. The District intends to review its procedures relating to procurement for its federal programs and will ensure that bids and/or quotations are obtained when required. The District has separately issued a Corrective Action Plan related to this finding.
SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE AND REPORTABLE INCIDENCE OF NONCOMPLIANCE ? U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER ? ALN 10.553, 10.555, AND 10.559 2022-001 Internal Control Over Compliance and Noncompliance With Federal Procurement Requirements Criteria ? 2 CFR ? 200.320 requires Independent School District No. 885 (the District) to establish and maintain effective internal control over compliance with requirements applicable to federal program expenditures, including procurement requirements applicable to child nutrition cluster federal programs. Condition ? During our audit, we noted that the District did not have sufficient controls in place within its child nutrition cluster federal program to ensure compliance with federal procurement requirements related to methods of procurement. Questioned Costs ? $104,423. Context ? For 1 of 25 vendors tested, the District had not awarded a contract based on sealed bids or quotations as required by the Uniform Guidance procurement standards. This was not a statistically valid sample. Repeat Finding ? This is a current year finding. Cause ? This was an oversight by district personnel. The vendor in question is a supplier to the District?s primary food vendor, for which the District did complete an appropriate quote process. However, purchases in excess of the quote threshold were made directly from the supplier, for which no approved quote process had been completed. Effect ? Noncompliance with the procurement requirements could result in the District expending federal funds inappropriately or utilizing vendors that are not eligible to be parties to such transactions, which could be viewed as a violation of the award agreement. Recommendation ? We recommend that the District review its internal control procedures relating to procurement for all federal programs. Internal controls should be in place to ensure compliance with federal procurement procedures, including awarding contracts based on sealed bids or quotations for the purchase of goods or services exceeding applicable federal dollar thresholds. View of Responsible Official and Planned Corrective Actions ? The District agrees with the finding. The District intends to review its procedures relating to procurement for its federal programs and will ensure that bids and/or quotations are obtained when required. The District has separately issued a Corrective Action Plan related to this finding.
SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE AND REPORTABLE INCIDENCE OF NONCOMPLIANCE ? U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER ? ALN 10.553, 10.555, AND 10.559 2022-001 Internal Control Over Compliance and Noncompliance With Federal Procurement Requirements Criteria ? 2 CFR ? 200.320 requires Independent School District No. 885 (the District) to establish and maintain effective internal control over compliance with requirements applicable to federal program expenditures, including procurement requirements applicable to child nutrition cluster federal programs. Condition ? During our audit, we noted that the District did not have sufficient controls in place within its child nutrition cluster federal program to ensure compliance with federal procurement requirements related to methods of procurement. Questioned Costs ? $104,423. Context ? For 1 of 25 vendors tested, the District had not awarded a contract based on sealed bids or quotations as required by the Uniform Guidance procurement standards. This was not a statistically valid sample. Repeat Finding ? This is a current year finding. Cause ? This was an oversight by district personnel. The vendor in question is a supplier to the District?s primary food vendor, for which the District did complete an appropriate quote process. However, purchases in excess of the quote threshold were made directly from the supplier, for which no approved quote process had been completed. Effect ? Noncompliance with the procurement requirements could result in the District expending federal funds inappropriately or utilizing vendors that are not eligible to be parties to such transactions, which could be viewed as a violation of the award agreement. Recommendation ? We recommend that the District review its internal control procedures relating to procurement for all federal programs. Internal controls should be in place to ensure compliance with federal procurement procedures, including awarding contracts based on sealed bids or quotations for the purchase of goods or services exceeding applicable federal dollar thresholds. View of Responsible Official and Planned Corrective Actions ? The District agrees with the finding. The District intends to review its procedures relating to procurement for its federal programs and will ensure that bids and/or quotations are obtained when required. The District has separately issued a Corrective Action Plan related to this finding.
SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE AND REPORTABLE INCIDENCE OF NONCOMPLIANCE ? U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER ? ALN 10.553, 10.555, AND 10.559 2022-001 Internal Control Over Compliance and Noncompliance With Federal Procurement Requirements Criteria ? 2 CFR ? 200.320 requires Independent School District No. 885 (the District) to establish and maintain effective internal control over compliance with requirements applicable to federal program expenditures, including procurement requirements applicable to child nutrition cluster federal programs. Condition ? During our audit, we noted that the District did not have sufficient controls in place within its child nutrition cluster federal program to ensure compliance with federal procurement requirements related to methods of procurement. Questioned Costs ? $104,423. Context ? For 1 of 25 vendors tested, the District had not awarded a contract based on sealed bids or quotations as required by the Uniform Guidance procurement standards. This was not a statistically valid sample. Repeat Finding ? This is a current year finding. Cause ? This was an oversight by district personnel. The vendor in question is a supplier to the District?s primary food vendor, for which the District did complete an appropriate quote process. However, purchases in excess of the quote threshold were made directly from the supplier, for which no approved quote process had been completed. Effect ? Noncompliance with the procurement requirements could result in the District expending federal funds inappropriately or utilizing vendors that are not eligible to be parties to such transactions, which could be viewed as a violation of the award agreement. Recommendation ? We recommend that the District review its internal control procedures relating to procurement for all federal programs. Internal controls should be in place to ensure compliance with federal procurement procedures, including awarding contracts based on sealed bids or quotations for the purchase of goods or services exceeding applicable federal dollar thresholds. View of Responsible Official and Planned Corrective Actions ? The District agrees with the finding. The District intends to review its procedures relating to procurement for its federal programs and will ensure that bids and/or quotations are obtained when required. The District has separately issued a Corrective Action Plan related to this finding.
SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE AND REPORTABLE INCIDENCE OF NONCOMPLIANCE ? U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER ? ALN 10.553, 10.555, AND 10.559 2022-001 Internal Control Over Compliance and Noncompliance With Federal Procurement Requirements Criteria ? 2 CFR ? 200.320 requires Independent School District No. 885 (the District) to establish and maintain effective internal control over compliance with requirements applicable to federal program expenditures, including procurement requirements applicable to child nutrition cluster federal programs. Condition ? During our audit, we noted that the District did not have sufficient controls in place within its child nutrition cluster federal program to ensure compliance with federal procurement requirements related to methods of procurement. Questioned Costs ? $104,423. Context ? For 1 of 25 vendors tested, the District had not awarded a contract based on sealed bids or quotations as required by the Uniform Guidance procurement standards. This was not a statistically valid sample. Repeat Finding ? This is a current year finding. Cause ? This was an oversight by district personnel. The vendor in question is a supplier to the District?s primary food vendor, for which the District did complete an appropriate quote process. However, purchases in excess of the quote threshold were made directly from the supplier, for which no approved quote process had been completed. Effect ? Noncompliance with the procurement requirements could result in the District expending federal funds inappropriately or utilizing vendors that are not eligible to be parties to such transactions, which could be viewed as a violation of the award agreement. Recommendation ? We recommend that the District review its internal control procedures relating to procurement for all federal programs. Internal controls should be in place to ensure compliance with federal procurement procedures, including awarding contracts based on sealed bids or quotations for the purchase of goods or services exceeding applicable federal dollar thresholds. View of Responsible Official and Planned Corrective Actions ? The District agrees with the finding. The District intends to review its procedures relating to procurement for its federal programs and will ensure that bids and/or quotations are obtained when required. The District has separately issued a Corrective Action Plan related to this finding.
SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE AND REPORTABLE INCIDENCE OF NONCOMPLIANCE ? U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER ? ALN 10.553, 10.555, AND 10.559 2022-001 Internal Control Over Compliance and Noncompliance With Federal Procurement Requirements Criteria ? 2 CFR ? 200.320 requires Independent School District No. 885 (the District) to establish and maintain effective internal control over compliance with requirements applicable to federal program expenditures, including procurement requirements applicable to child nutrition cluster federal programs. Condition ? During our audit, we noted that the District did not have sufficient controls in place within its child nutrition cluster federal program to ensure compliance with federal procurement requirements related to methods of procurement. Questioned Costs ? $104,423. Context ? For 1 of 25 vendors tested, the District had not awarded a contract based on sealed bids or quotations as required by the Uniform Guidance procurement standards. This was not a statistically valid sample. Repeat Finding ? This is a current year finding. Cause ? This was an oversight by district personnel. The vendor in question is a supplier to the District?s primary food vendor, for which the District did complete an appropriate quote process. However, purchases in excess of the quote threshold were made directly from the supplier, for which no approved quote process had been completed. Effect ? Noncompliance with the procurement requirements could result in the District expending federal funds inappropriately or utilizing vendors that are not eligible to be parties to such transactions, which could be viewed as a violation of the award agreement. Recommendation ? We recommend that the District review its internal control procedures relating to procurement for all federal programs. Internal controls should be in place to ensure compliance with federal procurement procedures, including awarding contracts based on sealed bids or quotations for the purchase of goods or services exceeding applicable federal dollar thresholds. View of Responsible Official and Planned Corrective Actions ? The District agrees with the finding. The District intends to review its procedures relating to procurement for its federal programs and will ensure that bids and/or quotations are obtained when required. The District has separately issued a Corrective Action Plan related to this finding.
SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE AND REPORTABLE INCIDENCE OF NONCOMPLIANCE ? U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER ? ALN 10.553, 10.555, AND 10.559 2022-001 Internal Control Over Compliance and Noncompliance With Federal Procurement Requirements Criteria ? 2 CFR ? 200.320 requires Independent School District No. 885 (the District) to establish and maintain effective internal control over compliance with requirements applicable to federal program expenditures, including procurement requirements applicable to child nutrition cluster federal programs. Condition ? During our audit, we noted that the District did not have sufficient controls in place within its child nutrition cluster federal program to ensure compliance with federal procurement requirements related to methods of procurement. Questioned Costs ? $104,423. Context ? For 1 of 25 vendors tested, the District had not awarded a contract based on sealed bids or quotations as required by the Uniform Guidance procurement standards. This was not a statistically valid sample. Repeat Finding ? This is a current year finding. Cause ? This was an oversight by district personnel. The vendor in question is a supplier to the District?s primary food vendor, for which the District did complete an appropriate quote process. However, purchases in excess of the quote threshold were made directly from the supplier, for which no approved quote process had been completed. Effect ? Noncompliance with the procurement requirements could result in the District expending federal funds inappropriately or utilizing vendors that are not eligible to be parties to such transactions, which could be viewed as a violation of the award agreement. Recommendation ? We recommend that the District review its internal control procedures relating to procurement for all federal programs. Internal controls should be in place to ensure compliance with federal procurement procedures, including awarding contracts based on sealed bids or quotations for the purchase of goods or services exceeding applicable federal dollar thresholds. View of Responsible Official and Planned Corrective Actions ? The District agrees with the finding. The District intends to review its procedures relating to procurement for its federal programs and will ensure that bids and/or quotations are obtained when required. The District has separately issued a Corrective Action Plan related to this finding.