Finding 1095685 (2024-004)

Significant Deficiency Repeat Finding
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-01-14
Audit: 337882
Organization: Elko County School District (NV)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: Elko County School District failed to follow proper procurement processes for federal grants, leading to significant deficiencies in internal controls.
  • Impacted Requirements: Noncompliance with Title 2 U.S. Code of Federal Regulations Part 200, which mandates documented procurement procedures and adherence to competitive bidding.
  • Recommended Follow-Up: Implement internal control policies to ensure compliance with procurement processes, including maintaining documentation for rate quotations and required contract provisions.

Finding Text

2024-004: U.S. Department of Agriculture Passed through State of Nevada Department of Agriculture Child Nutrition Cluster School Breakfast Program, 10.553 National School Lunch Program, 10.555 Fresh Fruit and Vegetable Program, 10.582 U.S. Department of Treasury Passed through State of Nevada Department of Education and the State of Nevada Department of Agriculture COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 Procurement, Suspension and Debarment Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing numbers 10.553, 10.555, 10.582, and 21.027 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires entities use their own documented procurement procedures, provided they reflect State, Local, and Federal laws and regulations. In addition, procurements must be carried out in a manner consistent with free and open competition and contain the applicable provisions described in Appendix II to Part 200 for contracts under federal awards. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding obtaining rate quotations or maintaining sole source vendor documentation, if applicable. In addition, contracts were missing required provisions per Appendix II to Part 200 for contracts under federal awards. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or maintaining sole source vendor documentation, if applicable, or including required contract provisions. Effect: Noncompetitive purchases may be deemed improper. Contractors may not be aware of required terms and conditions. Questioned Costs: None Context/Sampling: Child Nutrition Cluster, 10.553, 10.555 and 10.582 A nonstatistical sample of three procurement transactions out of nine was selected for testing for purchases over the micro-purchase threshold over $10,000. We noted three vendors where the vendor documentation maintained did not have the documented rate quotations or single source vendor documentation. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of five procurement transactions out of 18 was selected for testing, including one contract subject to Appendix II to Part 200. The one contract was missing certain required provisions from Appendix II to Part 200. Repeat Finding from Prior Year(s): Yes Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations or maintaining single source vendor documentation and including required contract provisions. Views of Responsible Officials: Management agrees with the finding.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 519239 2024-003
    Significant Deficiency
  • 519240 2024-005
    Significant Deficiency
  • 519241 2024-005
    Significant Deficiency
  • 519242 2024-004
    Significant Deficiency Repeat
  • 519243 2024-004
    Significant Deficiency Repeat
  • 519244 2024-004
    Significant Deficiency Repeat
  • 519245 2024-004
    Significant Deficiency Repeat
  • 519246 2024-004
    Significant Deficiency Repeat
  • 519247 2024-004
    Significant Deficiency Repeat
  • 519248 2024-004
    Significant Deficiency Repeat
  • 1095681 2024-003
    Significant Deficiency
  • 1095682 2024-005
    Significant Deficiency
  • 1095683 2024-005
    Significant Deficiency
  • 1095684 2024-004
    Significant Deficiency Repeat
  • 1095686 2024-004
    Significant Deficiency Repeat
  • 1095687 2024-004
    Significant Deficiency Repeat
  • 1095688 2024-004
    Significant Deficiency Repeat
  • 1095689 2024-004
    Significant Deficiency Repeat
  • 1095690 2024-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.041 Impact Aid $3.04M
84.027 Special Education Grants to States $2.29M
17.259 Wioa Youth Activities $1.05M
21.027 Coronavirus State and Local Fiscal Recovery Funds $938,024
10.553 School Breakfast Program $445,691
16.710 Public Safety Partnership and Community Policing Grants $368,981
10.555 National School Lunch Program $299,395
84.287 Twenty-First Century Community Learning Centers $275,865
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $193,221
10.579 Child Nutrition Discretionary Grants Limited Availability $165,171
10.582 Fresh Fruit and Vegetable Program $131,189
84.060 Indian Education Grants to Local Educational Agencies $112,555
84.369 Grants for State Assessments and Related Activities $90,091
84.173 Special Education Preschool Grants $89,905
84.424 Student Support and Academic Enrichment Program $69,863
84.365 English Language Acquisition State Grants $29,370
84.048 Career and Technical Education -- Basic Grants to States $28,934
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $24,783
84.425 Education Stabilization Fund $14,755
93.575 Child Care and Development Block Grant $14,500
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $10,675
84.011 Migrant Education State Grant Program $3,861
84.010 Title I Grants to Local Educational Agencies $3,082