Audit 391406

Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters Criteria or Specific Requirement: Uniform Guidance requires non-Federal entities receiving Federal awards to establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include maintaining adequate documentation to demonstrate the execution of procurement and suspension and debarment procedures. Condition: During Auditor test work over procurement, we noted the District did not follow its established procedures for procurement sample items. These sample items were over the micro-purchase threshold and required procedures for the small purchase method. The District did not appropriately maintain documentation when entering into these procurements. It did not follow district policy for reviewing vendors for suspension and debarment. Context: The error was noted in 3 out of 5 small purchases and 3 out of 3 suspension and debarment transactions tested that the District did not obtain the proper approvals. Questioned Costs: None Cause: The condition is due to errors in policy implementation. Repeat Finding: No. Effect: Failure to appropriately complete procurement and suspension and debarment procedures can result in the use of nonqualified vendors. Recommendation: We recommend the District follows their established procurement policies and adds a suspension/debarment policy. Views of Responsible Officials: The District agrees with this finding.