2022 ? 001 Federal Agency: US Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Numbers: 10.553 & 10.555 Federal Award Identification Number and Year: S425V210045 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number: 212MN061N1199 Award Period: Fiscal Year Ended June 30, 2022 Type of Finding: - Material Weakness in Internal Control over Compliance - Material Noncompliance (Modified Opinion) Criteria or specific requirement: ?200.319 requires that all procurement transactions must be conducted in a manner providing full and open competition consistent with the standards of this section and the School should have controls in place to ensure compliance with procurement requirements of the Child Nutrition Cluster program. Additionally, ?200.318 states that the School 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. Condition: There was a lack of documentation and controls noted for two procurements, out of eight tested. For one of the procurements, the original signed quote was obtained, but no other documentation could be located. For the other contract, it started off as a small, verbal agreement several years ago and the related cleaning costs increased as the school grew over the years, with the only procurement documentation being signed annual agreements. Questioned costs: $56,110 for ALN 10.553 and 10.555 Context: Two of seven procurements tested were not supported by proper documentation detailing the complete history of the transaction or formal documentation of the controls in place over compliance to ensure the formal documentation of the reasoning for the procurement decision. Cause: The vendors had been used for several years and the amount of the related expenditures paid to the vendors increased with the School?s size and needs. Therefore, any formal documentation of the original procurement decision to use the vendor was no longer on file with the School. Effect: Lack of proper documentation of procedures and controls related to the procurement could result in improper contracts being paid with federal funds. The School could also possibly award a contract to a vendor that would charge more than other responsible bidders. Repeat Finding: No Recommendation: We recommend the School review its procedures to ensure it retains documentation sufficient to detail the history of all procurements in accordance with the Uniform Guidance. We also recommend the School review its procedures over procurement controls to ensure all controls are also sufficiently documented with records that 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. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 002 Federal Agency: US Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Numbers: 10.553 & 10.555 Federal Award Identification Number and Year: S425V210045 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number: 212MN061N1199 Award Period: Fiscal Year Ended June 30, 2022 Type of Finding: - Material Weakness in Internal Control over Compliance - Material Noncompliance (Modified Opinion) Criteria or specific requirement: The Uniform Guidance requires the School to have a written procurement policy per ?200.319. This policy should detail the method of procurement the School follows, including the School's micro-purchase threshold. Condition: The School has a written procurement policy, but it did not detail a micro-purchase threshold. Questioned costs: None Context: The School has a written procurement policy, but it did not detail its micro-purchase threshold. But it did note that it required bids for any contract over $25,000. Cause: The School was not aware that this requirement was missing from its current policy. Effect: The School is not in compliance with this policy requirement. This could result in the related procedures for procurements in amounts below their policy's requirement to obtain bids for contracts over $25,000 not being clear to School staff, which could result in improper contracts being paid with federal funds. The School could also possibly award a contract to a vendor that would charge more than other responsible bidders. Repeat Finding: No Recommendation: We recommend that the School review its procurement policy for compliance with the Uniform Guidance and add a micro-purchase threshold to its procurement policy. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 001 Federal Agency: US Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Numbers: 10.553 & 10.555 Federal Award Identification Number and Year: S425V210045 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number: 212MN061N1199 Award Period: Fiscal Year Ended June 30, 2022 Type of Finding: - Material Weakness in Internal Control over Compliance - Material Noncompliance (Modified Opinion) Criteria or specific requirement: ?200.319 requires that all procurement transactions must be conducted in a manner providing full and open competition consistent with the standards of this section and the School should have controls in place to ensure compliance with procurement requirements of the Child Nutrition Cluster program. Additionally, ?200.318 states that the School 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. Condition: There was a lack of documentation and controls noted for two procurements, out of eight tested. For one of the procurements, the original signed quote was obtained, but no other documentation could be located. For the other contract, it started off as a small, verbal agreement several years ago and the related cleaning costs increased as the school grew over the years, with the only procurement documentation being signed annual agreements. Questioned costs: $56,110 for ALN 10.553 and 10.555 Context: Two of seven procurements tested were not supported by proper documentation detailing the complete history of the transaction or formal documentation of the controls in place over compliance to ensure the formal documentation of the reasoning for the procurement decision. Cause: The vendors had been used for several years and the amount of the related expenditures paid to the vendors increased with the School?s size and needs. Therefore, any formal documentation of the original procurement decision to use the vendor was no longer on file with the School. Effect: Lack of proper documentation of procedures and controls related to the procurement could result in improper contracts being paid with federal funds. The School could also possibly award a contract to a vendor that would charge more than other responsible bidders. Repeat Finding: No Recommendation: We recommend the School review its procedures to ensure it retains documentation sufficient to detail the history of all procurements in accordance with the Uniform Guidance. We also recommend the School review its procedures over procurement controls to ensure all controls are also sufficiently documented with records that 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. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 002 Federal Agency: US Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Numbers: 10.553 & 10.555 Federal Award Identification Number and Year: S425V210045 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number: 212MN061N1199 Award Period: Fiscal Year Ended June 30, 2022 Type of Finding: - Material Weakness in Internal Control over Compliance - Material Noncompliance (Modified Opinion) Criteria or specific requirement: The Uniform Guidance requires the School to have a written procurement policy per ?200.319. This policy should detail the method of procurement the School follows, including the School's micro-purchase threshold. Condition: The School has a written procurement policy, but it did not detail a micro-purchase threshold. Questioned costs: None Context: The School has a written procurement policy, but it did not detail its micro-purchase threshold. But it did note that it required bids for any contract over $25,000. Cause: The School was not aware that this requirement was missing from its current policy. Effect: The School is not in compliance with this policy requirement. This could result in the related procedures for procurements in amounts below their policy's requirement to obtain bids for contracts over $25,000 not being clear to School staff, which could result in improper contracts being paid with federal funds. The School could also possibly award a contract to a vendor that would charge more than other responsible bidders. Repeat Finding: No Recommendation: We recommend that the School review its procurement policy for compliance with the Uniform Guidance and add a micro-purchase threshold to its procurement policy. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 001 Federal Agency: US Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Numbers: 10.553 & 10.555 Federal Award Identification Number and Year: S425V210045 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number: 212MN061N1199 Award Period: Fiscal Year Ended June 30, 2022 Type of Finding: - Material Weakness in Internal Control over Compliance - Material Noncompliance (Modified Opinion) Criteria or specific requirement: ?200.319 requires that all procurement transactions must be conducted in a manner providing full and open competition consistent with the standards of this section and the School should have controls in place to ensure compliance with procurement requirements of the Child Nutrition Cluster program. Additionally, ?200.318 states that the School 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. Condition: There was a lack of documentation and controls noted for two procurements, out of eight tested. For one of the procurements, the original signed quote was obtained, but no other documentation could be located. For the other contract, it started off as a small, verbal agreement several years ago and the related cleaning costs increased as the school grew over the years, with the only procurement documentation being signed annual agreements. Questioned costs: $56,110 for ALN 10.553 and 10.555 Context: Two of seven procurements tested were not supported by proper documentation detailing the complete history of the transaction or formal documentation of the controls in place over compliance to ensure the formal documentation of the reasoning for the procurement decision. Cause: The vendors had been used for several years and the amount of the related expenditures paid to the vendors increased with the School?s size and needs. Therefore, any formal documentation of the original procurement decision to use the vendor was no longer on file with the School. Effect: Lack of proper documentation of procedures and controls related to the procurement could result in improper contracts being paid with federal funds. The School could also possibly award a contract to a vendor that would charge more than other responsible bidders. Repeat Finding: No Recommendation: We recommend the School review its procedures to ensure it retains documentation sufficient to detail the history of all procurements in accordance with the Uniform Guidance. We also recommend the School review its procedures over procurement controls to ensure all controls are also sufficiently documented with records that 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. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 002 Federal Agency: US Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Numbers: 10.553 & 10.555 Federal Award Identification Number and Year: S425V210045 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number: 212MN061N1199 Award Period: Fiscal Year Ended June 30, 2022 Type of Finding: - Material Weakness in Internal Control over Compliance - Material Noncompliance (Modified Opinion) Criteria or specific requirement: The Uniform Guidance requires the School to have a written procurement policy per ?200.319. This policy should detail the method of procurement the School follows, including the School's micro-purchase threshold. Condition: The School has a written procurement policy, but it did not detail a micro-purchase threshold. Questioned costs: None Context: The School has a written procurement policy, but it did not detail its micro-purchase threshold. But it did note that it required bids for any contract over $25,000. Cause: The School was not aware that this requirement was missing from its current policy. Effect: The School is not in compliance with this policy requirement. This could result in the related procedures for procurements in amounts below their policy's requirement to obtain bids for contracts over $25,000 not being clear to School staff, which could result in improper contracts being paid with federal funds. The School could also possibly award a contract to a vendor that would charge more than other responsible bidders. Repeat Finding: No Recommendation: We recommend that the School review its procurement policy for compliance with the Uniform Guidance and add a micro-purchase threshold to its procurement policy. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 001 Federal Agency: US Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Numbers: 10.553 & 10.555 Federal Award Identification Number and Year: S425V210045 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number: 212MN061N1199 Award Period: Fiscal Year Ended June 30, 2022 Type of Finding: - Material Weakness in Internal Control over Compliance - Material Noncompliance (Modified Opinion) Criteria or specific requirement: ?200.319 requires that all procurement transactions must be conducted in a manner providing full and open competition consistent with the standards of this section and the School should have controls in place to ensure compliance with procurement requirements of the Child Nutrition Cluster program. Additionally, ?200.318 states that the School 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. Condition: There was a lack of documentation and controls noted for two procurements, out of eight tested. For one of the procurements, the original signed quote was obtained, but no other documentation could be located. For the other contract, it started off as a small, verbal agreement several years ago and the related cleaning costs increased as the school grew over the years, with the only procurement documentation being signed annual agreements. Questioned costs: $56,110 for ALN 10.553 and 10.555 Context: Two of seven procurements tested were not supported by proper documentation detailing the complete history of the transaction or formal documentation of the controls in place over compliance to ensure the formal documentation of the reasoning for the procurement decision. Cause: The vendors had been used for several years and the amount of the related expenditures paid to the vendors increased with the School?s size and needs. Therefore, any formal documentation of the original procurement decision to use the vendor was no longer on file with the School. Effect: Lack of proper documentation of procedures and controls related to the procurement could result in improper contracts being paid with federal funds. The School could also possibly award a contract to a vendor that would charge more than other responsible bidders. Repeat Finding: No Recommendation: We recommend the School review its procedures to ensure it retains documentation sufficient to detail the history of all procurements in accordance with the Uniform Guidance. We also recommend the School review its procedures over procurement controls to ensure all controls are also sufficiently documented with records that 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. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 002 Federal Agency: US Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Numbers: 10.553 & 10.555 Federal Award Identification Number and Year: S425V210045 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number: 212MN061N1199 Award Period: Fiscal Year Ended June 30, 2022 Type of Finding: - Material Weakness in Internal Control over Compliance - Material Noncompliance (Modified Opinion) Criteria or specific requirement: The Uniform Guidance requires the School to have a written procurement policy per ?200.319. This policy should detail the method of procurement the School follows, including the School's micro-purchase threshold. Condition: The School has a written procurement policy, but it did not detail a micro-purchase threshold. Questioned costs: None Context: The School has a written procurement policy, but it did not detail its micro-purchase threshold. But it did note that it required bids for any contract over $25,000. Cause: The School was not aware that this requirement was missing from its current policy. Effect: The School is not in compliance with this policy requirement. This could result in the related procedures for procurements in amounts below their policy's requirement to obtain bids for contracts over $25,000 not being clear to School staff, which could result in improper contracts being paid with federal funds. The School could also possibly award a contract to a vendor that would charge more than other responsible bidders. Repeat Finding: No Recommendation: We recommend that the School review its procurement policy for compliance with the Uniform Guidance and add a micro-purchase threshold to its procurement policy. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 001 Federal Agency: US Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Numbers: 10.553 & 10.555 Federal Award Identification Number and Year: S425V210045 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number: 212MN061N1199 Award Period: Fiscal Year Ended June 30, 2022 Type of Finding: - Material Weakness in Internal Control over Compliance - Material Noncompliance (Modified Opinion) Criteria or specific requirement: ?200.319 requires that all procurement transactions must be conducted in a manner providing full and open competition consistent with the standards of this section and the School should have controls in place to ensure compliance with procurement requirements of the Child Nutrition Cluster program. Additionally, ?200.318 states that the School 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. Condition: There was a lack of documentation and controls noted for two procurements, out of eight tested. For one of the procurements, the original signed quote was obtained, but no other documentation could be located. For the other contract, it started off as a small, verbal agreement several years ago and the related cleaning costs increased as the school grew over the years, with the only procurement documentation being signed annual agreements. Questioned costs: $56,110 for ALN 10.553 and 10.555 Context: Two of seven procurements tested were not supported by proper documentation detailing the complete history of the transaction or formal documentation of the controls in place over compliance to ensure the formal documentation of the reasoning for the procurement decision. Cause: The vendors had been used for several years and the amount of the related expenditures paid to the vendors increased with the School?s size and needs. Therefore, any formal documentation of the original procurement decision to use the vendor was no longer on file with the School. Effect: Lack of proper documentation of procedures and controls related to the procurement could result in improper contracts being paid with federal funds. The School could also possibly award a contract to a vendor that would charge more than other responsible bidders. Repeat Finding: No Recommendation: We recommend the School review its procedures to ensure it retains documentation sufficient to detail the history of all procurements in accordance with the Uniform Guidance. We also recommend the School review its procedures over procurement controls to ensure all controls are also sufficiently documented with records that 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. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 002 Federal Agency: US Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Numbers: 10.553 & 10.555 Federal Award Identification Number and Year: S425V210045 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number: 212MN061N1199 Award Period: Fiscal Year Ended June 30, 2022 Type of Finding: - Material Weakness in Internal Control over Compliance - Material Noncompliance (Modified Opinion) Criteria or specific requirement: The Uniform Guidance requires the School to have a written procurement policy per ?200.319. This policy should detail the method of procurement the School follows, including the School's micro-purchase threshold. Condition: The School has a written procurement policy, but it did not detail a micro-purchase threshold. Questioned costs: None Context: The School has a written procurement policy, but it did not detail its micro-purchase threshold. But it did note that it required bids for any contract over $25,000. Cause: The School was not aware that this requirement was missing from its current policy. Effect: The School is not in compliance with this policy requirement. This could result in the related procedures for procurements in amounts below their policy's requirement to obtain bids for contracts over $25,000 not being clear to School staff, which could result in improper contracts being paid with federal funds. The School could also possibly award a contract to a vendor that would charge more than other responsible bidders. Repeat Finding: No Recommendation: We recommend that the School review its procurement policy for compliance with the Uniform Guidance and add a micro-purchase threshold to its procurement policy. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 001 Federal Agency: US Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Numbers: 10.553 & 10.555 Federal Award Identification Number and Year: S425V210045 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number: 212MN061N1199 Award Period: Fiscal Year Ended June 30, 2022 Type of Finding: - Material Weakness in Internal Control over Compliance - Material Noncompliance (Modified Opinion) Criteria or specific requirement: ?200.319 requires that all procurement transactions must be conducted in a manner providing full and open competition consistent with the standards of this section and the School should have controls in place to ensure compliance with procurement requirements of the Child Nutrition Cluster program. Additionally, ?200.318 states that the School 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. Condition: There was a lack of documentation and controls noted for two procurements, out of eight tested. For one of the procurements, the original signed quote was obtained, but no other documentation could be located. For the other contract, it started off as a small, verbal agreement several years ago and the related cleaning costs increased as the school grew over the years, with the only procurement documentation being signed annual agreements. Questioned costs: $56,110 for ALN 10.553 and 10.555 Context: Two of seven procurements tested were not supported by proper documentation detailing the complete history of the transaction or formal documentation of the controls in place over compliance to ensure the formal documentation of the reasoning for the procurement decision. Cause: The vendors had been used for several years and the amount of the related expenditures paid to the vendors increased with the School?s size and needs. Therefore, any formal documentation of the original procurement decision to use the vendor was no longer on file with the School. Effect: Lack of proper documentation of procedures and controls related to the procurement could result in improper contracts being paid with federal funds. The School could also possibly award a contract to a vendor that would charge more than other responsible bidders. Repeat Finding: No Recommendation: We recommend the School review its procedures to ensure it retains documentation sufficient to detail the history of all procurements in accordance with the Uniform Guidance. We also recommend the School review its procedures over procurement controls to ensure all controls are also sufficiently documented with records that 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. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 002 Federal Agency: US Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Numbers: 10.553 & 10.555 Federal Award Identification Number and Year: S425V210045 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number: 212MN061N1199 Award Period: Fiscal Year Ended June 30, 2022 Type of Finding: - Material Weakness in Internal Control over Compliance - Material Noncompliance (Modified Opinion) Criteria or specific requirement: The Uniform Guidance requires the School to have a written procurement policy per ?200.319. This policy should detail the method of procurement the School follows, including the School's micro-purchase threshold. Condition: The School has a written procurement policy, but it did not detail a micro-purchase threshold. Questioned costs: None Context: The School has a written procurement policy, but it did not detail its micro-purchase threshold. But it did note that it required bids for any contract over $25,000. Cause: The School was not aware that this requirement was missing from its current policy. Effect: The School is not in compliance with this policy requirement. This could result in the related procedures for procurements in amounts below their policy's requirement to obtain bids for contracts over $25,000 not being clear to School staff, which could result in improper contracts being paid with federal funds. The School could also possibly award a contract to a vendor that would charge more than other responsible bidders. Repeat Finding: No Recommendation: We recommend that the School review its procurement policy for compliance with the Uniform Guidance and add a micro-purchase threshold to its procurement policy. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 001 Federal Agency: US Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Numbers: 10.553 & 10.555 Federal Award Identification Number and Year: S425V210045 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number: 212MN061N1199 Award Period: Fiscal Year Ended June 30, 2022 Type of Finding: - Material Weakness in Internal Control over Compliance - Material Noncompliance (Modified Opinion) Criteria or specific requirement: ?200.319 requires that all procurement transactions must be conducted in a manner providing full and open competition consistent with the standards of this section and the School should have controls in place to ensure compliance with procurement requirements of the Child Nutrition Cluster program. Additionally, ?200.318 states that the School 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. Condition: There was a lack of documentation and controls noted for two procurements, out of eight tested. For one of the procurements, the original signed quote was obtained, but no other documentation could be located. For the other contract, it started off as a small, verbal agreement several years ago and the related cleaning costs increased as the school grew over the years, with the only procurement documentation being signed annual agreements. Questioned costs: $56,110 for ALN 10.553 and 10.555 Context: Two of seven procurements tested were not supported by proper documentation detailing the complete history of the transaction or formal documentation of the controls in place over compliance to ensure the formal documentation of the reasoning for the procurement decision. Cause: The vendors had been used for several years and the amount of the related expenditures paid to the vendors increased with the School?s size and needs. Therefore, any formal documentation of the original procurement decision to use the vendor was no longer on file with the School. Effect: Lack of proper documentation of procedures and controls related to the procurement could result in improper contracts being paid with federal funds. The School could also possibly award a contract to a vendor that would charge more than other responsible bidders. Repeat Finding: No Recommendation: We recommend the School review its procedures to ensure it retains documentation sufficient to detail the history of all procurements in accordance with the Uniform Guidance. We also recommend the School review its procedures over procurement controls to ensure all controls are also sufficiently documented with records that 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. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 002 Federal Agency: US Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Numbers: 10.553 & 10.555 Federal Award Identification Number and Year: S425V210045 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number: 212MN061N1199 Award Period: Fiscal Year Ended June 30, 2022 Type of Finding: - Material Weakness in Internal Control over Compliance - Material Noncompliance (Modified Opinion) Criteria or specific requirement: The Uniform Guidance requires the School to have a written procurement policy per ?200.319. This policy should detail the method of procurement the School follows, including the School's micro-purchase threshold. Condition: The School has a written procurement policy, but it did not detail a micro-purchase threshold. Questioned costs: None Context: The School has a written procurement policy, but it did not detail its micro-purchase threshold. But it did note that it required bids for any contract over $25,000. Cause: The School was not aware that this requirement was missing from its current policy. Effect: The School is not in compliance with this policy requirement. This could result in the related procedures for procurements in amounts below their policy's requirement to obtain bids for contracts over $25,000 not being clear to School staff, which could result in improper contracts being paid with federal funds. The School could also possibly award a contract to a vendor that would charge more than other responsible bidders. Repeat Finding: No Recommendation: We recommend that the School review its procurement policy for compliance with the Uniform Guidance and add a micro-purchase threshold to its procurement policy. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 001 Federal Agency: US Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Numbers: 10.553 & 10.555 Federal Award Identification Number and Year: S425V210045 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number: 212MN061N1199 Award Period: Fiscal Year Ended June 30, 2022 Type of Finding: - Material Weakness in Internal Control over Compliance - Material Noncompliance (Modified Opinion) Criteria or specific requirement: ?200.319 requires that all procurement transactions must be conducted in a manner providing full and open competition consistent with the standards of this section and the School should have controls in place to ensure compliance with procurement requirements of the Child Nutrition Cluster program. Additionally, ?200.318 states that the School 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. Condition: There was a lack of documentation and controls noted for two procurements, out of eight tested. For one of the procurements, the original signed quote was obtained, but no other documentation could be located. For the other contract, it started off as a small, verbal agreement several years ago and the related cleaning costs increased as the school grew over the years, with the only procurement documentation being signed annual agreements. Questioned costs: $56,110 for ALN 10.553 and 10.555 Context: Two of seven procurements tested were not supported by proper documentation detailing the complete history of the transaction or formal documentation of the controls in place over compliance to ensure the formal documentation of the reasoning for the procurement decision. Cause: The vendors had been used for several years and the amount of the related expenditures paid to the vendors increased with the School?s size and needs. Therefore, any formal documentation of the original procurement decision to use the vendor was no longer on file with the School. Effect: Lack of proper documentation of procedures and controls related to the procurement could result in improper contracts being paid with federal funds. The School could also possibly award a contract to a vendor that would charge more than other responsible bidders. Repeat Finding: No Recommendation: We recommend the School review its procedures to ensure it retains documentation sufficient to detail the history of all procurements in accordance with the Uniform Guidance. We also recommend the School review its procedures over procurement controls to ensure all controls are also sufficiently documented with records that 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. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 002 Federal Agency: US Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Numbers: 10.553 & 10.555 Federal Award Identification Number and Year: S425V210045 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number: 212MN061N1199 Award Period: Fiscal Year Ended June 30, 2022 Type of Finding: - Material Weakness in Internal Control over Compliance - Material Noncompliance (Modified Opinion) Criteria or specific requirement: The Uniform Guidance requires the School to have a written procurement policy per ?200.319. This policy should detail the method of procurement the School follows, including the School's micro-purchase threshold. Condition: The School has a written procurement policy, but it did not detail a micro-purchase threshold. Questioned costs: None Context: The School has a written procurement policy, but it did not detail its micro-purchase threshold. But it did note that it required bids for any contract over $25,000. Cause: The School was not aware that this requirement was missing from its current policy. Effect: The School is not in compliance with this policy requirement. This could result in the related procedures for procurements in amounts below their policy's requirement to obtain bids for contracts over $25,000 not being clear to School staff, which could result in improper contracts being paid with federal funds. The School could also possibly award a contract to a vendor that would charge more than other responsible bidders. Repeat Finding: No Recommendation: We recommend that the School review its procurement policy for compliance with the Uniform Guidance and add a micro-purchase threshold to its procurement policy. Views of responsible officials: There is no disagreement with the audit finding.