Finding Text
Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Controls over Compliance. Federal program(s) U.S. Department of Education - Child Nutrition Cluster (10.553, 10.555, and 10.559); Passed through the Michigan Department of Education; All project numbers. Criteria. The Uniform Guidance requires non-federal entities must have and use documented procurement procedures as required under 2 CFR 200.320. For purchases in excess of the micro-purchase threshold, nonfederal entities must at minimum obtain price or rate quotations from an adequate number of qualified sources as determined appropriate by the non-Federal entity and must be able to document the price or rate quotations obtained as part of this process. Condition. Of the five vendors tested for compliance with procurement requirements, the District could not provide documentation of compliance with procurement standards for one of the vendors tested. While the District appears to have made an informal effort to ensure that costs were reasonable by contacting its group purchasing vendor, the District did not issue or document price and/or rate quotations as required. Cause. The District does not have the proper internal controls in place to ensure that all procurement contracts awarded to vendors have complied with federal requirements for allowable procurement methods. Effect. The District could not properly document compliance with federal requirements for informal procurement methods as required under Uniform Guidance. Questioned Costs. None. Recommendation. We recommend that the District reviews its policies and procedures to ensure that applicable procurement requirements are followed and documented when the District enters into new contracts or procurement arrangements with vendors for goods and/or services on federal programs. View of Responsible Officials. District officials will review its internal procedures to ensure future compliance with and appropriate document of procurement requirements vendor relationships. Responsible Official. Business Manager. Estimated Completion Date. June 30, 2025.