FAC Explorer

Audit 301555

FY End
2023-06-30
Total Expended
$1.09M
Findings
2
Programs
3
Organization: Beaver County Career & Technology Center (PA)
Year: 2023 Accepted: 2024-04-01
Auditor: Mark C Turnley CPA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
390824 2023-001 Material Weakness - I
967266 2023-001 Material Weakness - I

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $547,457 Yes 1
84.048 Career and Technical Education -- Basic Grants to States $325,027 - 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $46,073 - 0

Contacts

Name Title Type
LDCHAMBNNJL8 Laura Delvecchio Auditee
7247285800 Kim Turnley Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 – BASIS OF PRESENTATION Accounting Policies: BASIS OF ACCOUNTING Expenditures reported on the Schedule are presented using the accrual method of accounting. Under this method, grant revenue is recognized to the extent expenditures are incurred. Expenditures are recognized when the liability for the expenditure is incurred rather than when the disbursement is actually made. The federal expenditures are recognized, as applicable, under the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or limited to reimbursement. De Minimis Rate Used: N Rate Explanation: The Beaver County Career and Technology Center utilizes the indirect cost rate as prescribed under the terms of the grant agreement if applicable. The accompanying schedule of expenditures of federal awards (the ‘Schedule’) includes the federal grant activity administered by the Beaver County Career and Technology Center for the year ended June 30, 2023. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Grant Guidance – UGG). Because the Schedule presents only a selected portion of the operations of the Career and Technology Center, it is not intended to and does not present the financial position or changes in net position of the Beaver County Career and Technology Center.
Title: NOTE 3 - RELATIONSHIP TO FINANCIAL STATEMENTS Accounting Policies: BASIS OF ACCOUNTING Expenditures reported on the Schedule are presented using the accrual method of accounting. Under this method, grant revenue is recognized to the extent expenditures are incurred. Expenditures are recognized when the liability for the expenditure is incurred rather than when the disbursement is actually made. The federal expenditures are recognized, as applicable, under the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or limited to reimbursement. De Minimis Rate Used: N Rate Explanation: The Beaver County Career and Technology Center utilizes the indirect cost rate as prescribed under the terms of the grant agreement if applicable. Federal financial award revenues are included in the financial statements as 'federal source' revenues.
Title: NOTE 4 – RECEIVABLES AND UNEARNED REVENUE Accounting Policies: BASIS OF ACCOUNTING Expenditures reported on the Schedule are presented using the accrual method of accounting. Under this method, grant revenue is recognized to the extent expenditures are incurred. Expenditures are recognized when the liability for the expenditure is incurred rather than when the disbursement is actually made. The federal expenditures are recognized, as applicable, under the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or limited to reimbursement. De Minimis Rate Used: N Rate Explanation: The Beaver County Career and Technology Center utilizes the indirect cost rate as prescribed under the terms of the grant agreement if applicable. Federal grant receivables are included as part of 'due from other governments' in Exhibit A and Exhibit C as referenced in Note 3 to the Financial Statements. Unearned federal grant revenue, if any, is included as part of 'unearned revenue' in Exhibit A and Exhibit C.

Finding Details

Finding 2023-001
CONDITION: The Beaver County Career and Technical School contracted with a third-party vendor – Huckstein Mechanical for upgrades to the HVAC system at the Center. The contract was procured through a cooperative purchasing group. The Center 1) was unable to provide documentation from the cooperative purchasing group to verify that the HVAC system upgrade contract was competitively procured, such as a bid evaluation and public solicitation and 2) did not obtain the adequate number of price or rate quotations. CRITERIA: As specified in 2 CFR 200. 318(i) of the Uniform Guidance, the Center must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. In addition, small purchase procedures per 2 CFR 200.320(a)(2)(i) for acquisitions between the micro-purchase threshold (currently $10,000) and the simplified acquisition threshold (current $250,000), price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate. Per 24 PS 8.807.1, there should be three quotes that are either written or well documented. CAUSE: Center personnel directly responsible for the oversight and execution of the HVAC upgrade contract interpreted that the requirements specified by 2 CFR 200.318(i) and 2 CFR 200.320(a)(2)(i), would be met through the cooperative purchasing, however the Center appears to not have received and maintained all of the specific history of procurement documents internally, as referenced under the criteria section, to support this compliance. In addition, the Center did not maintain documentation to substantiate that an adequate number of price quotations were solicited. EFFECT: The Beaver County Career and Technical Center did not comply with the requirements of 2 CFR 200.318(i) and 2 CFR 200.320(a)(2)(i) of the Uniform Guidance, regarding maintaining records sufficient to detail the history of procurement for the HVAC upgrade project. In addition, the Center did not comply with 24 PS 8.807.1 regarding maintaining documentation to substantiate that an adequate number of price quotations for the HVAC upgrade project. QUESTIONED COST: $547,457 RECOMMENDATION: I am recommending that the management of the Center review and update as necessary its procurement policies to ensure retention of the appropriate procurement documentation, in all instances, including such instances whereby the Center is using a contract vehicle from a cooperative purchase network so as to comply with all applicable sections of the Uniform Guidance, specifically Section 2 CFR 200.318(i) and 2 CFR.320(a)(2)(i) of the Uniform Guidance. In addition, it is recommended that the Center document its attempts to obtain an adequate number of price or rate quotations as specified by 24 PS 8.807.1 over the $10,000 expenditure threshold. VIEWS OF RESPONSIBLE OFFICIALS: Management of the Center has reviewed the above noted finding and recommendation and have developed a corresponding ‘Corrective Action Plan’ to address this matter (See Corrective Action Plan).
Finding 2023-001
CONDITION: The Beaver County Career and Technical School contracted with a third-party vendor – Huckstein Mechanical for upgrades to the HVAC system at the Center. The contract was procured through a cooperative purchasing group. The Center 1) was unable to provide documentation from the cooperative purchasing group to verify that the HVAC system upgrade contract was competitively procured, such as a bid evaluation and public solicitation and 2) did not obtain the adequate number of price or rate quotations. CRITERIA: As specified in 2 CFR 200. 318(i) of the Uniform Guidance, the Center must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. In addition, small purchase procedures per 2 CFR 200.320(a)(2)(i) for acquisitions between the micro-purchase threshold (currently $10,000) and the simplified acquisition threshold (current $250,000), price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate. Per 24 PS 8.807.1, there should be three quotes that are either written or well documented. CAUSE: Center personnel directly responsible for the oversight and execution of the HVAC upgrade contract interpreted that the requirements specified by 2 CFR 200.318(i) and 2 CFR 200.320(a)(2)(i), would be met through the cooperative purchasing, however the Center appears to not have received and maintained all of the specific history of procurement documents internally, as referenced under the criteria section, to support this compliance. In addition, the Center did not maintain documentation to substantiate that an adequate number of price quotations were solicited. EFFECT: The Beaver County Career and Technical Center did not comply with the requirements of 2 CFR 200.318(i) and 2 CFR 200.320(a)(2)(i) of the Uniform Guidance, regarding maintaining records sufficient to detail the history of procurement for the HVAC upgrade project. In addition, the Center did not comply with 24 PS 8.807.1 regarding maintaining documentation to substantiate that an adequate number of price quotations for the HVAC upgrade project. QUESTIONED COST: $547,457 RECOMMENDATION: I am recommending that the management of the Center review and update as necessary its procurement policies to ensure retention of the appropriate procurement documentation, in all instances, including such instances whereby the Center is using a contract vehicle from a cooperative purchase network so as to comply with all applicable sections of the Uniform Guidance, specifically Section 2 CFR 200.318(i) and 2 CFR.320(a)(2)(i) of the Uniform Guidance. In addition, it is recommended that the Center document its attempts to obtain an adequate number of price or rate quotations as specified by 24 PS 8.807.1 over the $10,000 expenditure threshold. VIEWS OF RESPONSIBLE OFFICIALS: Management of the Center has reviewed the above noted finding and recommendation and have developed a corresponding ‘Corrective Action Plan’ to address this matter (See Corrective Action Plan).