Audit 382469

Finding Number: 2025‐001 Repeat Finding: No Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10.555, 10.559, 10.582 Federal Agency: U.S. Department of Agriculture Federal Award Numbers: 7AZ300AZ3, 6AZ300400, 7AZ310AZ1 Pass‐Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Procurement and Suspension and Debarment Criteria Non‐federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR §200.318 through 200.326. Subrecipients must use their own documented procurement procedures, which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR part 200.A Condition The District did not follow Federal, State, and Board policies and regulations governing procurement. Cause The District’s review procedures over each transaction did not operate as designed. Effect The District was not in compliance with Federal, State, and Board policies and regulations governing procurement. Context The District procured supplies from a vendor that totaled $50,663. However, the District could not provide documentation showing that the District procured the supplies in accordance with Federal, State, and Board policies and regulations; specifically, that price or rate quotations were obtained from an adequate number of qualified sources. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should ensure that it maintains procurement documentation to document that expenditures are completed in compliance with Federal, State, and Board procurement policies and regulations. Views of Responsible Officials See Corrective Action Plan.