Finding 1078585 (2024-003)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2024-10-10

AI Summary

  • Core Issue: There is a material weakness in internal controls over compliance related to procurement methods for the Child Nutrition Cluster program.
  • Impacted Requirements: The District failed to follow appropriate procurement procedures for 3 out of 11 vendors tested, violating 2 CRF section 200.320.
  • Recommended Follow-Up: The District should implement training and controls to ensure compliance with procurement methods to avoid potential cost increases.

Finding Text

Type of Finding: Material weakness in internal control over compliance Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, and 10.556 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-2899-000 Award Period: July 1, 2023 – June 30, 2024 Criteria or Specific Requirement: Per 2 CRF section 200.320, the District should have controls in place to verify that the procurement method used was appropriate based on the dollar amount and conditions. Condition: During procurement testing, it was noted that the procurement by small purchase procedures for obtaining quotes were not followed for 3 of 3 vendors tested for vendors higher than the micro-purchase threshold ($10,000) but did not exceed the simplified acquisition threshold ($250,000). Questioned Costs: None Context: 3 of 11 vendors tested had not followed the proper procurement method per Uniform Grant Guidance (UGG) policy. Cause: Oversight. Effect: Lack of following the proper procurement method could result in paying more to a vendor when a different vendor could have provided a lower quote. This could ultimately result in questioned costs. After review, transactions individually are immaterial. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the District implement procedures and controls to ensure proper procurement method is followed. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the finding. Management will train employees on the UGG policy.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 502134 2024-002
    Significant Deficiency
  • 502135 2024-002
    Significant Deficiency
  • 502136 2024-002
    Significant Deficiency
  • 502137 2024-002
    Significant Deficiency
  • 502138 2024-002
    Significant Deficiency
  • 502139 2024-003
    Material Weakness
  • 502140 2024-003
    Material Weakness
  • 502141 2024-003
    Material Weakness
  • 502142 2024-003
    Material Weakness
  • 502143 2024-003
    Material Weakness
  • 1078576 2024-002
    Significant Deficiency
  • 1078577 2024-002
    Significant Deficiency
  • 1078578 2024-002
    Significant Deficiency
  • 1078579 2024-002
    Significant Deficiency
  • 1078580 2024-002
    Significant Deficiency
  • 1078581 2024-003
    Material Weakness
  • 1078582 2024-003
    Material Weakness
  • 1078583 2024-003
    Material Weakness
  • 1078584 2024-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $237,274
84.010 Title I Grants to Local Educational Agencies $154,936
84.425 Education Stabilization Fund $67,537
10.553 School Breakfast Program $56,755
84.011 Migrant Education_state Grant Program $49,777
21.027 Coronavirus State and Local Fiscal Recovery Funds $43,632
84.027 Special Education_grants to States $34,417
84.367 Improving Teacher Quality State Grants $27,150
84.173 Special Education_preschool Grants $10,200
84.424 Student Support and Academic Enrichment Program $10,154
84.048 Career and Technical Education -- Basic Grants to States $9,313
10.185 First Bite Grant $6,543
10.556 Special Milk Program for Children $1,585
10.169 Pandemic Ebt $653