Finding 1073110 (2024-001)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2024-09-12

AI Summary

  • Core Issue: The District did not obtain required price or rate quotations from multiple sources for a $147,612 procurement, violating small purchase procedures.
  • Impacted Requirements: Non-compliance with section 200.320 of the CFR and the District's own procurement policy regarding small purchases.
  • Recommended Follow-Up: Ensure the Food Service Director obtains multiple quotes annually by June 1st and maintains documentation to demonstrate compliance with procurement procedures.

Finding Text

Per section 200.320 in Subpart D of the code of federal regulations (CFR) the non-federal entity is responsible for complying with small purchase procedures for procurement. The acquisition of property or services, the aggregate dollar amount of which is higher than the micro-purchase threshold ($50,000) but does not exceed the simplified acquisition threshold ($250,000). If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate by the non-Federal entity. The District procured $147,612 in goods from a food service vendor (Martin Bros. Distributing Company Inc.) and did not have documented support that price or rate quotations were obtained from multiple sources in accordance with the small purchase guidelines.No reportable questioned costs were identified. The District's Board policy for procurement for small purchase procedures states that if small purchase procedures are used that the District obtain price or rate quotations from and adequate number of qualified sources as determined by the District. During our audit procedures we were unable to obtain supporting documentation for multiple price or rate quotations for the goods procured from the food service vendor during the year. The District did not follow appropriate procurement policy procedures for purchases made under the small purchase procedures within the food service program. The District did not obtain multiple rate or price quotations during the year. We recommend that the District follow the procedures for the procurement of goods that meet the small purchase procedures as defined by the Uniform Guidance rules. The District should maintain documentation to show that they complied with these requirements. The District will follow the procedures for the procurement of goods that meet the small purchase procedures as defined by the Uniform Guidance rules. The District will maintain documentation to show that they complied with these requirements. By June 1st of each school year, the Food Service Director will obtain multiple quotes of the food needed to supply breakfast and lunch to all students to ensure that he is obtaining the lowest prices possible for the school district.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 496668 2024-001
    Material Weakness
  • 496669 2024-001
    Material Weakness
  • 496670 2024-001
    Material Weakness
  • 496671 2024-001
    Material Weakness
  • 496672 2024-001
    Material Weakness
  • 496673 2024-001
    Material Weakness
  • 496674 2024-001
    Material Weakness
  • 1073111 2024-001
    Material Weakness
  • 1073112 2024-001
    Material Weakness
  • 1073113 2024-001
    Material Weakness
  • 1073114 2024-001
    Material Weakness
  • 1073115 2024-001
    Material Weakness
  • 1073116 2024-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $487,062
84.027 Special Education_grants to States $267,705
10.553 School Breakfast Program $111,604
84.367 Improving Teacher Quality State Grants $61,626
84.425 Education Stabilization Fund $51,206
84.424 Student Support and Academic Enrichment Program $43,805
93.778 Medical Assistance Program $41,487
10.560 State Administrative Expenses for Child Nutrition $28,395
84.173 Special Education_preschool Grants $17,001
10.555 National School Lunch Program $10,171
10.649 Pandemic Ebt Administrative Costs $653