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.