Finding Text
Federal Agency: U.S. Department of Agriculture
Federal Program Name: Child Nutrition Cluster
Assistance Listing Number: 10.553/10.555/10.559
Federal Award Identification Number and Year: Not Provided
Pass-Through Agency: Maryland State Department of Education
Pass-Through Number: Not Available
Award Period: 7/1/2023 – 6/30/2024
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or Specific Requirement:
Control: According to the Carroll County Board of Education's procurement policy, any contract valued at over $25,000 must obtain board approval. This ensures compliance with internal controls and procurement regulations as specified in their policy manual and 2 CFR section 200.303(a), which requires non-Federal entities to establish and maintain effective internal control over Federal awards.
Condition/Context:
For one of seven vendors selected for testing, the Carroll County Board of Education failed to obtain board approval for a contract valued at over $25,000, as required by their procurement policy.
Questioned Costs: None Noted.
Cause:
The Board did not adhere to its established procedures for obtaining necessary approvals for this contract exceeding $25,000 because the initial purchase was intended to be below the approval threshold. However, the total value of the contract was not fully considered.
Effect:
Failure to comply with the board approval requirement may result in unauthorized procurement activities and potential mismanagement of federal funds.
Repeat Finding: No
Recommendation:
We recommend that the Carroll County Board of Education enhance its internal control procedures to ensure adherence to its procurement policy. This includes establishing a clear and consistently enforced process whereby all contracts over $25,000 are submitted for board approval prior to execution.
Views of responsible officials:
There is no disagreement with the finding.