FINDING 2024-007 (Section III-Federal Award Findings and Questioned Costs)
Finding Subject: Special Education Cluster (IDEA) - Procurement and Suspension and Debarment
Contact Person Responsible for Corrective Action: Dawn Mason, Business Manager, DeKalb Co. Eastern
CSD
Contact Phone Number and Emai...
FINDING 2024-007 (Section III-Federal Award Findings and Questioned Costs)
Finding Subject: Special Education Cluster (IDEA) - Procurement and Suspension and Debarment
Contact Person Responsible for Corrective Action: Dawn Mason, Business Manager, DeKalb Co. Eastern
CSD
Contact Phone Number and Email Address: 260-868-2125; dmason@dkeschools.com
Views of Responsible Officials: We concur with the findings.
Description of Corrective Action Plan:
The expenditures referenced in the finding were expended from the American Rescue Plan Special Education grant
funds which were fully expended during the audit period. All future expenditures triggering procurement and
suspension and debarment requirements will include implementing the following procurement policies.
Reference Procurement Standards 2 CFR 200.318
Districts may not enter into contracts with entities that have been suspended or debarred from participating in
contracts with federal funds. For contracts over $25,000, districts must verify a contractor is not excluded or
disqualified. Contractors must be verified in one of three ways:
1. Checking the System for Award Management (SAM) (www.SAM.gov)
2. Collecting a certificate from that contractor.
3. Adding a clause or condition to the covered transaction with that contractor. (Recommended)
**Proper verification and documentation must be sent to the LEA for audit purposes.
Methods of Procurement
Where specific EDGAR/UG thresholds apply, Districts must meet baseline requirements for procurement. If State or
local rules have more restrictive thresholds, the most restrictive rule must be followed.
Informal Procurement Procedures
1. Micro-purchase (0-$50,000)
Dekalb County Eastern CSD has self-certified micro-purchases for up to $50,000
Micro-purchases may be awarded without soliciting competitive quotes if the district considers the price to
be reasonable. Quotes must be attached to the invoice/checks for proper documentation and retained by
the LEA.
2. Small Purchase ($50,000 – $150,000)
Three quotes are required prior to purchase unless the purchase comes from a “Sole Source” vendor. Small
purchases are required to be ordered under a purchase order unless in an emergency. Additional quotes
must be presented along with the purchase order prior to being approved by the LEA. Per Uniform Guidance:
2 CFR § 200.511(a) – “The auditee is responsible for follow-up and corrective action on all audit findings. . .The auditee must also prepare a corrective
action plan for current year audit findings. . . The corrective action plan and summary schedule of prior audit findings must include findings relating
to the financial statements which are required to be reported in accordance with GAGAS. ”
2 CFR § 200.511(c) – “At the completion of the audit, the auditee must prepare, in a document separate from the auditor's findings described in §
200.516, a corrective action plan to address each audit finding included in the current year auditor's reports. The corrective action plan must provide
the name(s) of the contact person(s) responsible for corrective action, the corrective action planned, and the anticipated completion date. If the
auditee does not agree with the audit findings or believes corrective action is not required, then the corrective action plan must include an explanation
and specific reasons.” Formal Procurement Procedures
1. Sealed Bids (above $150,000)
Bids must be solicited from an adequate number of suppliers, providing them with sufficient response time
prior to the opening of the bids. Proper advertisement and procedures must be followed per IC 5-22 and
corresponding documentation must be presented to the LEA prior to any final approval or purchases being
made.
2. Competitive Proposals (above $150,000)
The Request for Proposal method is used for procurements in which factors other than cost play a
significant role. Per IC 5-22-9, when a purchasing agent makes a written determination that the use of
competitive sealed bidding is either not practicable or not advantageous to the governmental body, the
purchasing agent may award a contract using this procedure instead of competitive sealed bidding. This
provides a formal process for the procurement of goods and/or services for which price is not the sole factor
in the selection of a vendor or vendors. Proper advertisement and procedures must be followed per IC 5-22
and corresponding documentation must be presented to the LEA prior to any final approval or purchases
being made.
Noncompetitive (Sole Source)
All sole source procurements require adequate written justification and must be attached to the corresponding
purchase order or payment.
Anticipated Completion Date:
All expenditures initiated after March 12, 2025