Finding Text
Procurement
Federal Agency: U.S. Department of Agriculture
Federal Program Name: Child Nutrition Cluster
Assistance Listing Number – 10.553, 10.555, 10.556, 10.559
Federal Award Identification Number and Year: Year 2024
Award Period: 7/1/23-6/30/24
Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters
Criteria or Specific Requirement: Uniform Guidance requires non-Federal entities receiving Federal awards to establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include maintaining adequate documentation to demonstrate the execution of procurement procedures.
Condition: During Auditor testing over procurement, we noted the District did not follow its established procedures for two procurement sample items. This sample items were over the micro-purchase threshold and required procedures for the small purchase method. The District did not appropriately maintain documentation when entering into these procurements.
Context: The error was noted in 2 of 2 items tested.
Questioned Costs: None
Cause: The condition is due to staff turnover.
Repeat Finding: None
Effect: Failure to appropriately complete procurement procedures can result in the use of nonqualified vendors.
Recommendation: We recommend the District follows their established procurement policies.
Views of Responsible Officials: The District agrees with this finding.