Audit 90372

FY End
2022-06-30
Total Expended
$18.73M
Findings
6
Programs
8
Organization: Epic Blended Charter Schools (OK)
Year: 2022 Accepted: 2022-10-25

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
84342 2022-004 Material Weakness Yes I
84343 2022-004 Material Weakness Yes I
84344 2022-004 Material Weakness Yes I
660784 2022-004 Material Weakness Yes I
660785 2022-004 Material Weakness Yes I
660786 2022-004 Material Weakness Yes I

Contacts

Name Title Type
JNEHM8TCQM15 Jeanise Wynn Auditee
4057494550 Jake Winkler Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditure reported on the SEFA are reported on the basis of the financial reporting provisions of Oklahoma State Department of Education which is a basis of accounting other than accounting principles generally accepted in the United States of America, to comply with the requirements of Oklahoma State Department Education. Such expenditure are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Epic One-on-One has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-004 ? Proper procurement for contracts Criteria: From the Uniform Guidance sections 200.31-200.326, there are five general procurement standards that cover the purchase of property, supplies and services under the Uniform Guidance: 1. The organization must maintain written policies and procedures for procurement covering the methods available under these regulations. 2. Costs must be reasonable and necessary 3. Must provide for full and open competition 4. The organization must maintain written standards of conduct covering internal and external conflicts of interest 5. The organization must maintain documentation addressing cost and price analysis and vendor selections where applicable based on the method of procurement used. Condition: Prior to January 1, 2022, management did not have a formal bid policy in place for contracts that required formal bids that were consistent with requirements outlined by the Uniform Guidance. Cause and Effect: As a result, Epic lacked the appropriate procedures from July 1, 2021 through December 31, 2021 and did not follow the specified process where an open competition occurred, a price analysis was performed, and there was no bid process was followed. Recommendation: We recommend that management implements the formal procurement policy that meets the requirements outlined by the Uniform Guidance throughout the entirety of the fiscal year. Additionally, we recommend purchase order (PO) approvals are decentralized, allowing for budget owners to be the first line of defense for obtaining the necessary quotes when requesting to contract with a vendor and that these quotes are attached to the PO for final approvals. Management Response: We understand the causes and findings as outlined above. Epic will continue to follow the policy put in place in January 2022, which is consistent with requirements outlined by the Uniformed Guidance.
Finding 2022-004 ? Proper procurement for contracts Criteria: From the Uniform Guidance sections 200.31-200.326, there are five general procurement standards that cover the purchase of property, supplies and services under the Uniform Guidance: 1. The organization must maintain written policies and procedures for procurement covering the methods available under these regulations. 2. Costs must be reasonable and necessary 3. Must provide for full and open competition 4. The organization must maintain written standards of conduct covering internal and external conflicts of interest 5. The organization must maintain documentation addressing cost and price analysis and vendor selections where applicable based on the method of procurement used. Condition: Prior to January 1, 2022, management did not have a formal bid policy in place for contracts that required formal bids that were consistent with requirements outlined by the Uniform Guidance. Cause and Effect: As a result, Epic lacked the appropriate procedures from July 1, 2021 through December 31, 2021 and did not follow the specified process where an open competition occurred, a price analysis was performed, and there was no bid process was followed. Recommendation: We recommend that management implements the formal procurement policy that meets the requirements outlined by the Uniform Guidance throughout the entirety of the fiscal year. Additionally, we recommend purchase order (PO) approvals are decentralized, allowing for budget owners to be the first line of defense for obtaining the necessary quotes when requesting to contract with a vendor and that these quotes are attached to the PO for final approvals. Management Response: We understand the causes and findings as outlined above. Epic will continue to follow the policy put in place in January 2022, which is consistent with requirements outlined by the Uniformed Guidance.
Finding 2022-004 ? Proper procurement for contracts Criteria: From the Uniform Guidance sections 200.31-200.326, there are five general procurement standards that cover the purchase of property, supplies and services under the Uniform Guidance: 1. The organization must maintain written policies and procedures for procurement covering the methods available under these regulations. 2. Costs must be reasonable and necessary 3. Must provide for full and open competition 4. The organization must maintain written standards of conduct covering internal and external conflicts of interest 5. The organization must maintain documentation addressing cost and price analysis and vendor selections where applicable based on the method of procurement used. Condition: Prior to January 1, 2022, management did not have a formal bid policy in place for contracts that required formal bids that were consistent with requirements outlined by the Uniform Guidance. Cause and Effect: As a result, Epic lacked the appropriate procedures from July 1, 2021 through December 31, 2021 and did not follow the specified process where an open competition occurred, a price analysis was performed, and there was no bid process was followed. Recommendation: We recommend that management implements the formal procurement policy that meets the requirements outlined by the Uniform Guidance throughout the entirety of the fiscal year. Additionally, we recommend purchase order (PO) approvals are decentralized, allowing for budget owners to be the first line of defense for obtaining the necessary quotes when requesting to contract with a vendor and that these quotes are attached to the PO for final approvals. Management Response: We understand the causes and findings as outlined above. Epic will continue to follow the policy put in place in January 2022, which is consistent with requirements outlined by the Uniformed Guidance.
Finding 2022-004 ? Proper procurement for contracts Criteria: From the Uniform Guidance sections 200.31-200.326, there are five general procurement standards that cover the purchase of property, supplies and services under the Uniform Guidance: 1. The organization must maintain written policies and procedures for procurement covering the methods available under these regulations. 2. Costs must be reasonable and necessary 3. Must provide for full and open competition 4. The organization must maintain written standards of conduct covering internal and external conflicts of interest 5. The organization must maintain documentation addressing cost and price analysis and vendor selections where applicable based on the method of procurement used. Condition: Prior to January 1, 2022, management did not have a formal bid policy in place for contracts that required formal bids that were consistent with requirements outlined by the Uniform Guidance. Cause and Effect: As a result, Epic lacked the appropriate procedures from July 1, 2021 through December 31, 2021 and did not follow the specified process where an open competition occurred, a price analysis was performed, and there was no bid process was followed. Recommendation: We recommend that management implements the formal procurement policy that meets the requirements outlined by the Uniform Guidance throughout the entirety of the fiscal year. Additionally, we recommend purchase order (PO) approvals are decentralized, allowing for budget owners to be the first line of defense for obtaining the necessary quotes when requesting to contract with a vendor and that these quotes are attached to the PO for final approvals. Management Response: We understand the causes and findings as outlined above. Epic will continue to follow the policy put in place in January 2022, which is consistent with requirements outlined by the Uniformed Guidance.
Finding 2022-004 ? Proper procurement for contracts Criteria: From the Uniform Guidance sections 200.31-200.326, there are five general procurement standards that cover the purchase of property, supplies and services under the Uniform Guidance: 1. The organization must maintain written policies and procedures for procurement covering the methods available under these regulations. 2. Costs must be reasonable and necessary 3. Must provide for full and open competition 4. The organization must maintain written standards of conduct covering internal and external conflicts of interest 5. The organization must maintain documentation addressing cost and price analysis and vendor selections where applicable based on the method of procurement used. Condition: Prior to January 1, 2022, management did not have a formal bid policy in place for contracts that required formal bids that were consistent with requirements outlined by the Uniform Guidance. Cause and Effect: As a result, Epic lacked the appropriate procedures from July 1, 2021 through December 31, 2021 and did not follow the specified process where an open competition occurred, a price analysis was performed, and there was no bid process was followed. Recommendation: We recommend that management implements the formal procurement policy that meets the requirements outlined by the Uniform Guidance throughout the entirety of the fiscal year. Additionally, we recommend purchase order (PO) approvals are decentralized, allowing for budget owners to be the first line of defense for obtaining the necessary quotes when requesting to contract with a vendor and that these quotes are attached to the PO for final approvals. Management Response: We understand the causes and findings as outlined above. Epic will continue to follow the policy put in place in January 2022, which is consistent with requirements outlined by the Uniformed Guidance.
Finding 2022-004 ? Proper procurement for contracts Criteria: From the Uniform Guidance sections 200.31-200.326, there are five general procurement standards that cover the purchase of property, supplies and services under the Uniform Guidance: 1. The organization must maintain written policies and procedures for procurement covering the methods available under these regulations. 2. Costs must be reasonable and necessary 3. Must provide for full and open competition 4. The organization must maintain written standards of conduct covering internal and external conflicts of interest 5. The organization must maintain documentation addressing cost and price analysis and vendor selections where applicable based on the method of procurement used. Condition: Prior to January 1, 2022, management did not have a formal bid policy in place for contracts that required formal bids that were consistent with requirements outlined by the Uniform Guidance. Cause and Effect: As a result, Epic lacked the appropriate procedures from July 1, 2021 through December 31, 2021 and did not follow the specified process where an open competition occurred, a price analysis was performed, and there was no bid process was followed. Recommendation: We recommend that management implements the formal procurement policy that meets the requirements outlined by the Uniform Guidance throughout the entirety of the fiscal year. Additionally, we recommend purchase order (PO) approvals are decentralized, allowing for budget owners to be the first line of defense for obtaining the necessary quotes when requesting to contract with a vendor and that these quotes are attached to the PO for final approvals. Management Response: We understand the causes and findings as outlined above. Epic will continue to follow the policy put in place in January 2022, which is consistent with requirements outlined by the Uniformed Guidance.