Audit 381396

Assistance Listing Number 10.555 National School Lunch Program/National School Lunch Program-Non-Cash Assistance (Commodities)/Supply Chain Assistance-COVID-19 10.553 National School Breakfast Program 10.559 National Summer Food Service Program Year Ended – June 30, 2025 Federal Agency – U.S. Department of Agriculture Criteria – The Uniform Grant Guidance requires that New York State school districts follow formal procurement methods. Condition – One vendor paid with grant funds was paid in excess of established thresholds and was not competitively bid in accordance with the District’s procurement policy. Cause – The District compared approved state contract pricing and requested quotes from vendors that it had existing relationships with. The vendor’s quote was less than the approved state contract pricing, so the District moved forward with the purchase. Effect – The District will not be considered a low-risk auditee for single audit purposes. In addition, the District is not in compliance with its procurement policy. Questioned Costs – There were no questioned costs noted related to this finding. Context – This finding was identified during testing of purchases made with grant funds, follow up inquiries of management, and review of the related policies noted above. Recommendation – We recommend the District ensure that proper bidding procedures are followed when purchases or projects exceed the applicable threshold of $20,000/$35,000. District’s Response – In the case reviewed, the District obtained State contract pricing but also requested quotes from vendors with whom we had established relationships with. In this case, the established vendor provided a lower cost option to the District and this resulted in a saving of public dollars. Moving forward, the District will utilize State contract pricing or will publicly bid all costs above the policy threshold. It should be noted that this may result in a higher cost to the district for goods and services.