Audit 51331

FY End
2022-06-30
Total Expended
$1.40M
Findings
4
Programs
8
Year: 2022 Accepted: 2023-02-15

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
42649 2022-002 Material Weakness - I
42650 2022-002 Material Weakness - I
619091 2022-002 Material Weakness - I
619092 2022-002 Material Weakness - I

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $469,577 Yes 0
84.010 Title I Grants to Local Educational Agencies $152,682 - 0
10.553 School Breakfast Program $94,696 - 0
84.367 Improving Teacher Quality State Grants $44,655 - 0
10.555 National School Lunch Program $22,823 - 0
84.424 Student Support and Academic Enrichment Program $12,113 - 0
84.027 Special Education_grants to States $11,130 Yes 1
10.649 Pandemic Ebt Administrative Costs $614 - 0

Contacts

Name Title Type
L2B4BQLHAHZ6 Lori Houck Auditee
7406255984 Bethany Peak Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The School District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Centerburg Local School District (the School District) under programs of the federal government for the year ended June 30, 2021. The information on this Schedule is prepared in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the School District, it is not intended to and does not present the financial position or changes in net position of the School District.
Title: CHILD NUTRITION CLUSTER Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The School District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The School District commingles cash receipts from the U.S. Department of Agriculture with similar State grants. When reporting expenditures on this Schedule, the School District assumes it expends federal monies first
Title: FOOD DONATION PROGRAM Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The School District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The School District reports commodities consumed on the Schedule at the fair value. The School District allocated donated food commodities to the respective program that benefitted from the use of those donated food commodities.
Title: TRANSFERS BETWEEN PROGRAM YEARS Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The School District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Federal regulations require schools to obligate certain federal awards by June 30. However, with ODEs consent, schools can transfer unobligated amounts to the subsequent fiscal years program. The School District transferred the following amounts from 2021 to 2022 programs; see chart in notes

Finding Details

Ohio Rev. Code ?? 3313.843 and 3313.845 allows traditional schools to contract with Educational Service Centers (ESCs) to provide services as outlined in the agreement between the two parties. Ohio Rev. Code ? 3313.843(C) requires these agreements to be filed with the Ohio Department of Education by the first day of July of the school year for which the agreement is in effect. 2 CFR ? 3474.1 gives regulatory effect to the Department of Education for 2 CFR ? 200.320 which outlines the methods of procurement to be followed by state subrecipient non-Federal entities when expending certain types Federal funds, including those received through Grant Agreements. Ohio Rev. Code ? 3313.843(J) clarifies that a school district may apply for approval from the ODE, and therefore be in compliance with federal law, to use a noncompetitive purchasing method to procure personnel-based services from an ESC if certain conditions are present. Pursuant to Ohio Revised Code 3313.843(J), ODE created a form that allows schools to request that ODE authorize a noncompetitive proposal for their ESC Services. Request for Approval For A Noncompetitive Proposal When Procuring Personnel-based Services From A High-Performing Educational Service Center Under Ohio Revised Code 3313.843(J), Ohio Department of Education. Furthermore, 2 CFR ? 3485 gives regulatory effect to the Department of Education for 2 CFR 180.305 states that Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred or whose principals are suspended or debarred, unless the Federal agency responsible for the transaction grants an exception under 2 CFR ? 180.135. 2 CFR ? 180.200 identifies that ?covered transactions? include nonprocurement or procurement transactions at the primary tier, between a Federal agency and a person; or at the lower tier, between a participant in a covered transaction and another person. Procurement contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) are covered transactions if the contracts are expected to equal or exceed $25,000 or meet certain other specified criteria outlined in 2 CFR ? 180.220. All nonprocurement transactions (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless listed in the exemptions in 2 CFR ? 180.215. When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity is not suspended or debarred or otherwise excluded. This verification may be accomplished by checking SAM exclusions (https://sam.gov ); collecting a certification from the entity, or adding a clause or condition to the covered transactions with that entity. School District Federal Procurement Policy #6325 indicates for noncompetitive purchases through an ESC, the Treasurer/CFO will submit an application and any required documentation to ODE on the designated form requesting approval for use of a noncompetitive purchasing method for personnel services. Purchases will not be made until the application is approved and notice of approval will be maintained by the Treasurer/CFO. Additionally, Policy #6325 indicates for the acquisition of services higher than $10,000 but under $50,000, such is considered a small purchase. Small purchase procedures require that price or rate quotations shall be obtained from an adequate number of qualified sources. Policy # 6325, also states for contracts over $25,000, the School District shall confirm that the vendor is not debarred or suspended by either checking the Federal government's System for Award Management, which maintains a list of such debarred or suspended vendors at www.sam.gov; collecting a certification from the vendor; or adding a clause or condition to the covered transaction with that vendor. In fiscal year 2022, the School District contracted with two vendors for Special Education services, the Knox County Educational Service Center (ESC) and Bloom Pediatric Therapy; of which the School District expended $177,668 and $11,130 respectively, which were paid from the Special Education Cluster grant and subject to Federal procurement laws. Under 2 CFR ?200.320, the School District should have competitively bid the services needed or obtained price quotes from qualified sources, as further defined in the School District?s procurement policy, unless validly exempt. The School District?s Federal Procurement Policy #6325 provided guidelines for services provided by the ESC to be considered noncompetitive providing upon approval from ODE. However, the School District did not file the ESC agreement with ODE or attempt to obtain any approval from ODE on the agreement until April 2022, the last three months of the fiscal year, despite the agreement was already in effect. Therefore, all payments to the ESC prior to April 1, 2022 were not in compliance with 2 CFR ? 200.320, Ohio Rev. Code ? 3313.843(J) and the District?s procurement policy #6325. Furthermore, the School District?s contract with Bloom Pediatric Therapy would have met the requirements of a small purchase and required the School District to gather, review and document quotations for services from an adequate number of qualified sources. The School District did not maintain any documentation evidencing quotes were obtained and considered as required by 2 CFR ? 200.320. The School District also did not have the proper internal controls in place to verify that all entities, with whom the School District had entered into covered transactions, had not been suspended or debarred. During testing of procurement for the Special Education IDEA program, we noted the School District expended more than $25,000 to the Knox County ESC and there was no evidence the School District checked the SAM exclusions, collected a certification from the ESC, or added a clause or condition to the covered transaction with the vendor. Due to the deficient internal control structure, the required verification was not completed for the only covered transaction in the Special Education IDEA program during fiscal year 2022. Failing to have the appropriate controls in place over procurement procedures may result in vendors who are suspended or debarred receiving federal funds or the School District paying excess costs for services. As a result, we have qualified our opinion over the School District?s Special Education Cluster (IDEA) federal program. Prior to contracting with vendors whom will be paid with federal funds, the School District should establish internal control procedures to help ensure the School District?s procurement policies and procedures are in compliance with 2 CFR ? 200.320 and should verify vendors are not suspended or debarred by checking the SAM exclusions, collecting a certification from the vendor, or adding a clause or condition to the covered transaction with the vendor.
Ohio Rev. Code ?? 3313.843 and 3313.845 allows traditional schools to contract with Educational Service Centers (ESCs) to provide services as outlined in the agreement between the two parties. Ohio Rev. Code ? 3313.843(C) requires these agreements to be filed with the Ohio Department of Education by the first day of July of the school year for which the agreement is in effect. 2 CFR ? 3474.1 gives regulatory effect to the Department of Education for 2 CFR ? 200.320 which outlines the methods of procurement to be followed by state subrecipient non-Federal entities when expending certain types Federal funds, including those received through Grant Agreements. Ohio Rev. Code ? 3313.843(J) clarifies that a school district may apply for approval from the ODE, and therefore be in compliance with federal law, to use a noncompetitive purchasing method to procure personnel-based services from an ESC if certain conditions are present. Pursuant to Ohio Revised Code 3313.843(J), ODE created a form that allows schools to request that ODE authorize a noncompetitive proposal for their ESC Services. Request for Approval For A Noncompetitive Proposal When Procuring Personnel-based Services From A High-Performing Educational Service Center Under Ohio Revised Code 3313.843(J), Ohio Department of Education. Furthermore, 2 CFR ? 3485 gives regulatory effect to the Department of Education for 2 CFR 180.305 states that Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred or whose principals are suspended or debarred, unless the Federal agency responsible for the transaction grants an exception under 2 CFR ? 180.135. 2 CFR ? 180.200 identifies that ?covered transactions? include nonprocurement or procurement transactions at the primary tier, between a Federal agency and a person; or at the lower tier, between a participant in a covered transaction and another person. Procurement contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) are covered transactions if the contracts are expected to equal or exceed $25,000 or meet certain other specified criteria outlined in 2 CFR ? 180.220. All nonprocurement transactions (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless listed in the exemptions in 2 CFR ? 180.215. When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity is not suspended or debarred or otherwise excluded. This verification may be accomplished by checking SAM exclusions (https://sam.gov ); collecting a certification from the entity, or adding a clause or condition to the covered transactions with that entity. School District Federal Procurement Policy #6325 indicates for noncompetitive purchases through an ESC, the Treasurer/CFO will submit an application and any required documentation to ODE on the designated form requesting approval for use of a noncompetitive purchasing method for personnel services. Purchases will not be made until the application is approved and notice of approval will be maintained by the Treasurer/CFO. Additionally, Policy #6325 indicates for the acquisition of services higher than $10,000 but under $50,000, such is considered a small purchase. Small purchase procedures require that price or rate quotations shall be obtained from an adequate number of qualified sources. Policy # 6325, also states for contracts over $25,000, the School District shall confirm that the vendor is not debarred or suspended by either checking the Federal government's System for Award Management, which maintains a list of such debarred or suspended vendors at www.sam.gov; collecting a certification from the vendor; or adding a clause or condition to the covered transaction with that vendor. In fiscal year 2022, the School District contracted with two vendors for Special Education services, the Knox County Educational Service Center (ESC) and Bloom Pediatric Therapy; of which the School District expended $177,668 and $11,130 respectively, which were paid from the Special Education Cluster grant and subject to Federal procurement laws. Under 2 CFR ?200.320, the School District should have competitively bid the services needed or obtained price quotes from qualified sources, as further defined in the School District?s procurement policy, unless validly exempt. The School District?s Federal Procurement Policy #6325 provided guidelines for services provided by the ESC to be considered noncompetitive providing upon approval from ODE. However, the School District did not file the ESC agreement with ODE or attempt to obtain any approval from ODE on the agreement until April 2022, the last three months of the fiscal year, despite the agreement was already in effect. Therefore, all payments to the ESC prior to April 1, 2022 were not in compliance with 2 CFR ? 200.320, Ohio Rev. Code ? 3313.843(J) and the District?s procurement policy #6325. Furthermore, the School District?s contract with Bloom Pediatric Therapy would have met the requirements of a small purchase and required the School District to gather, review and document quotations for services from an adequate number of qualified sources. The School District did not maintain any documentation evidencing quotes were obtained and considered as required by 2 CFR ? 200.320. The School District also did not have the proper internal controls in place to verify that all entities, with whom the School District had entered into covered transactions, had not been suspended or debarred. During testing of procurement for the Special Education IDEA program, we noted the School District expended more than $25,000 to the Knox County ESC and there was no evidence the School District checked the SAM exclusions, collected a certification from the ESC, or added a clause or condition to the covered transaction with the vendor. Due to the deficient internal control structure, the required verification was not completed for the only covered transaction in the Special Education IDEA program during fiscal year 2022. Failing to have the appropriate controls in place over procurement procedures may result in vendors who are suspended or debarred receiving federal funds or the School District paying excess costs for services. As a result, we have qualified our opinion over the School District?s Special Education Cluster (IDEA) federal program. Prior to contracting with vendors whom will be paid with federal funds, the School District should establish internal control procedures to help ensure the School District?s procurement policies and procedures are in compliance with 2 CFR ? 200.320 and should verify vendors are not suspended or debarred by checking the SAM exclusions, collecting a certification from the vendor, or adding a clause or condition to the covered transaction with the vendor.
Ohio Rev. Code ?? 3313.843 and 3313.845 allows traditional schools to contract with Educational Service Centers (ESCs) to provide services as outlined in the agreement between the two parties. Ohio Rev. Code ? 3313.843(C) requires these agreements to be filed with the Ohio Department of Education by the first day of July of the school year for which the agreement is in effect. 2 CFR ? 3474.1 gives regulatory effect to the Department of Education for 2 CFR ? 200.320 which outlines the methods of procurement to be followed by state subrecipient non-Federal entities when expending certain types Federal funds, including those received through Grant Agreements. Ohio Rev. Code ? 3313.843(J) clarifies that a school district may apply for approval from the ODE, and therefore be in compliance with federal law, to use a noncompetitive purchasing method to procure personnel-based services from an ESC if certain conditions are present. Pursuant to Ohio Revised Code 3313.843(J), ODE created a form that allows schools to request that ODE authorize a noncompetitive proposal for their ESC Services. Request for Approval For A Noncompetitive Proposal When Procuring Personnel-based Services From A High-Performing Educational Service Center Under Ohio Revised Code 3313.843(J), Ohio Department of Education. Furthermore, 2 CFR ? 3485 gives regulatory effect to the Department of Education for 2 CFR 180.305 states that Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred or whose principals are suspended or debarred, unless the Federal agency responsible for the transaction grants an exception under 2 CFR ? 180.135. 2 CFR ? 180.200 identifies that ?covered transactions? include nonprocurement or procurement transactions at the primary tier, between a Federal agency and a person; or at the lower tier, between a participant in a covered transaction and another person. Procurement contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) are covered transactions if the contracts are expected to equal or exceed $25,000 or meet certain other specified criteria outlined in 2 CFR ? 180.220. All nonprocurement transactions (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless listed in the exemptions in 2 CFR ? 180.215. When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity is not suspended or debarred or otherwise excluded. This verification may be accomplished by checking SAM exclusions (https://sam.gov ); collecting a certification from the entity, or adding a clause or condition to the covered transactions with that entity. School District Federal Procurement Policy #6325 indicates for noncompetitive purchases through an ESC, the Treasurer/CFO will submit an application and any required documentation to ODE on the designated form requesting approval for use of a noncompetitive purchasing method for personnel services. Purchases will not be made until the application is approved and notice of approval will be maintained by the Treasurer/CFO. Additionally, Policy #6325 indicates for the acquisition of services higher than $10,000 but under $50,000, such is considered a small purchase. Small purchase procedures require that price or rate quotations shall be obtained from an adequate number of qualified sources. Policy # 6325, also states for contracts over $25,000, the School District shall confirm that the vendor is not debarred or suspended by either checking the Federal government's System for Award Management, which maintains a list of such debarred or suspended vendors at www.sam.gov; collecting a certification from the vendor; or adding a clause or condition to the covered transaction with that vendor. In fiscal year 2022, the School District contracted with two vendors for Special Education services, the Knox County Educational Service Center (ESC) and Bloom Pediatric Therapy; of which the School District expended $177,668 and $11,130 respectively, which were paid from the Special Education Cluster grant and subject to Federal procurement laws. Under 2 CFR ?200.320, the School District should have competitively bid the services needed or obtained price quotes from qualified sources, as further defined in the School District?s procurement policy, unless validly exempt. The School District?s Federal Procurement Policy #6325 provided guidelines for services provided by the ESC to be considered noncompetitive providing upon approval from ODE. However, the School District did not file the ESC agreement with ODE or attempt to obtain any approval from ODE on the agreement until April 2022, the last three months of the fiscal year, despite the agreement was already in effect. Therefore, all payments to the ESC prior to April 1, 2022 were not in compliance with 2 CFR ? 200.320, Ohio Rev. Code ? 3313.843(J) and the District?s procurement policy #6325. Furthermore, the School District?s contract with Bloom Pediatric Therapy would have met the requirements of a small purchase and required the School District to gather, review and document quotations for services from an adequate number of qualified sources. The School District did not maintain any documentation evidencing quotes were obtained and considered as required by 2 CFR ? 200.320. The School District also did not have the proper internal controls in place to verify that all entities, with whom the School District had entered into covered transactions, had not been suspended or debarred. During testing of procurement for the Special Education IDEA program, we noted the School District expended more than $25,000 to the Knox County ESC and there was no evidence the School District checked the SAM exclusions, collected a certification from the ESC, or added a clause or condition to the covered transaction with the vendor. Due to the deficient internal control structure, the required verification was not completed for the only covered transaction in the Special Education IDEA program during fiscal year 2022. Failing to have the appropriate controls in place over procurement procedures may result in vendors who are suspended or debarred receiving federal funds or the School District paying excess costs for services. As a result, we have qualified our opinion over the School District?s Special Education Cluster (IDEA) federal program. Prior to contracting with vendors whom will be paid with federal funds, the School District should establish internal control procedures to help ensure the School District?s procurement policies and procedures are in compliance with 2 CFR ? 200.320 and should verify vendors are not suspended or debarred by checking the SAM exclusions, collecting a certification from the vendor, or adding a clause or condition to the covered transaction with the vendor.
Ohio Rev. Code ?? 3313.843 and 3313.845 allows traditional schools to contract with Educational Service Centers (ESCs) to provide services as outlined in the agreement between the two parties. Ohio Rev. Code ? 3313.843(C) requires these agreements to be filed with the Ohio Department of Education by the first day of July of the school year for which the agreement is in effect. 2 CFR ? 3474.1 gives regulatory effect to the Department of Education for 2 CFR ? 200.320 which outlines the methods of procurement to be followed by state subrecipient non-Federal entities when expending certain types Federal funds, including those received through Grant Agreements. Ohio Rev. Code ? 3313.843(J) clarifies that a school district may apply for approval from the ODE, and therefore be in compliance with federal law, to use a noncompetitive purchasing method to procure personnel-based services from an ESC if certain conditions are present. Pursuant to Ohio Revised Code 3313.843(J), ODE created a form that allows schools to request that ODE authorize a noncompetitive proposal for their ESC Services. Request for Approval For A Noncompetitive Proposal When Procuring Personnel-based Services From A High-Performing Educational Service Center Under Ohio Revised Code 3313.843(J), Ohio Department of Education. Furthermore, 2 CFR ? 3485 gives regulatory effect to the Department of Education for 2 CFR 180.305 states that Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred or whose principals are suspended or debarred, unless the Federal agency responsible for the transaction grants an exception under 2 CFR ? 180.135. 2 CFR ? 180.200 identifies that ?covered transactions? include nonprocurement or procurement transactions at the primary tier, between a Federal agency and a person; or at the lower tier, between a participant in a covered transaction and another person. Procurement contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) are covered transactions if the contracts are expected to equal or exceed $25,000 or meet certain other specified criteria outlined in 2 CFR ? 180.220. All nonprocurement transactions (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless listed in the exemptions in 2 CFR ? 180.215. When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity is not suspended or debarred or otherwise excluded. This verification may be accomplished by checking SAM exclusions (https://sam.gov ); collecting a certification from the entity, or adding a clause or condition to the covered transactions with that entity. School District Federal Procurement Policy #6325 indicates for noncompetitive purchases through an ESC, the Treasurer/CFO will submit an application and any required documentation to ODE on the designated form requesting approval for use of a noncompetitive purchasing method for personnel services. Purchases will not be made until the application is approved and notice of approval will be maintained by the Treasurer/CFO. Additionally, Policy #6325 indicates for the acquisition of services higher than $10,000 but under $50,000, such is considered a small purchase. Small purchase procedures require that price or rate quotations shall be obtained from an adequate number of qualified sources. Policy # 6325, also states for contracts over $25,000, the School District shall confirm that the vendor is not debarred or suspended by either checking the Federal government's System for Award Management, which maintains a list of such debarred or suspended vendors at www.sam.gov; collecting a certification from the vendor; or adding a clause or condition to the covered transaction with that vendor. In fiscal year 2022, the School District contracted with two vendors for Special Education services, the Knox County Educational Service Center (ESC) and Bloom Pediatric Therapy; of which the School District expended $177,668 and $11,130 respectively, which were paid from the Special Education Cluster grant and subject to Federal procurement laws. Under 2 CFR ?200.320, the School District should have competitively bid the services needed or obtained price quotes from qualified sources, as further defined in the School District?s procurement policy, unless validly exempt. The School District?s Federal Procurement Policy #6325 provided guidelines for services provided by the ESC to be considered noncompetitive providing upon approval from ODE. However, the School District did not file the ESC agreement with ODE or attempt to obtain any approval from ODE on the agreement until April 2022, the last three months of the fiscal year, despite the agreement was already in effect. Therefore, all payments to the ESC prior to April 1, 2022 were not in compliance with 2 CFR ? 200.320, Ohio Rev. Code ? 3313.843(J) and the District?s procurement policy #6325. Furthermore, the School District?s contract with Bloom Pediatric Therapy would have met the requirements of a small purchase and required the School District to gather, review and document quotations for services from an adequate number of qualified sources. The School District did not maintain any documentation evidencing quotes were obtained and considered as required by 2 CFR ? 200.320. The School District also did not have the proper internal controls in place to verify that all entities, with whom the School District had entered into covered transactions, had not been suspended or debarred. During testing of procurement for the Special Education IDEA program, we noted the School District expended more than $25,000 to the Knox County ESC and there was no evidence the School District checked the SAM exclusions, collected a certification from the ESC, or added a clause or condition to the covered transaction with the vendor. Due to the deficient internal control structure, the required verification was not completed for the only covered transaction in the Special Education IDEA program during fiscal year 2022. Failing to have the appropriate controls in place over procurement procedures may result in vendors who are suspended or debarred receiving federal funds or the School District paying excess costs for services. As a result, we have qualified our opinion over the School District?s Special Education Cluster (IDEA) federal program. Prior to contracting with vendors whom will be paid with federal funds, the School District should establish internal control procedures to help ensure the School District?s procurement policies and procedures are in compliance with 2 CFR ? 200.320 and should verify vendors are not suspended or debarred by checking the SAM exclusions, collecting a certification from the vendor, or adding a clause or condition to the covered transaction with the vendor.