Audit 374451

Finding 2025-001, Significant deficiency Identification of federal program: US DEPARTMENT OF AGRICULTURE passed through the Indiana Department of Education Child Nutrition Cluster 10.553 & 10.555, US DEPARTMENT OF EDUCATION passed through the Indiana Department of Education Chater School Facilities Incentive Grant 84.282D Criteria: According to 2CFR 200.318(i) the recipient or subrecipient must maintain records sufficient to detail the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price. Condition: The School did not maintain records for food and construction vendors that met the acquisition thresholds for the year. Cause: The School’s procurement policies do not address the frequency of which vendors should be evaluated. In addition, the policies also do not address records retention. Potential effect: The procurement may not have been proper under the grant requirements. Questioned costs: None. Repeat Finding: Repeat of finding 2024-004. Context: A total sample of two (2) of thirteen (13) purchases related to a certain food provider were selected as a part of procurement and suspension and debarment compliance requirement testing for the Child Nutrition Cluster. Additionally, one (1) of two (2) construction projects begun during the fiscal year did not undergo a formal RFP nor were posted publicly to obtain multiple bids. Recommendation: We recommend that the School follow federal procurement guidelines for each of the different purchase thresholds for each vendor. We further recommend that the School retain any documentation created related to the procurement selection and vetting process. Views of Responsible Officials: See attached Corrective Action Plan.

Finding 2025-002, Significant deficiency Identification of federal program: US DEPARTMENT OF EDUCATION passed through the Indiana Department of Education Chater School Facilities Incentive Grant 84.282D Criteria: According to 2CFR 184.1(b), funds are not to be made available for an infrastructure project unless all of the iron, steel, manufactured products, and construction materials incorporated into the project are produced in the United States. Condition: The School’s construction vendor was unable to confirm that the stipulations of Build America Buy America Act (BABAA) were followed. Cause: The School’s did not obtain nor inquire on the vendor’s policy on sourcing materials used for infrastructure construction. Potential effect: The materials may not have been sourced properly under the grant requirements. Questioned costs: None. Context: A total sample of one (1) of two (2) construction projects begun during the fiscal year were unable to confirm that BABAA was followed. Recommendation: We recommend that the School inquire of vendors on their compliance with BABAA. Views of Responsible Officials: See attached Corrective Action Plan.

Finding 2025-003, Significant deficiency Identification of federal program: US DEPARTMENT OF AGRICULTURE passed through the Indiana Department of Education Child Nutrition Cluster 10.553 & 10.555, Criteria: According to 2CFR 200.431(c) The recipient or subrecipient must allocate fringe benefits to Federal awards and all other activities in a manner consistent with the pattern of benefits attributable to the individuals or group(s) of employees whose salaries and wages are chargeable to such Federal awards and other activities, and charged as direct or indirect costs following the recipient's or subrecipient's accounting practices. Condition: The School over-allocated health insurance benefits to the Child Nutrition Cluster Cause: The School was using an outdated allocation formula that did not reflect changes to personnel in the program. Effect: The School over-allocated health insurance benefits to the Child Nutrition Cluster. Questioned costs: $9,215 Context: Of the six employees in the program tested, one employee had health insurance benefits. The outdated allocation formula was used for all twelve months of the school year. Recommendation: We recommend that the School review fringe benefit allocations at the start of each school year, and then at least quarterly throughout the year to monitor for personnel changes that may impact allocations so that allocations may be adjusted timely. Views of Responsible Officials: See attached Corrective Action Plan.