Finding Text
Finding 2024-004, Significant deficiency
Identification of federal program: US DEPARTMENT OF AGRICULTURE passed through the Indiana Department of Education Child Nutrition Cluster 10.553 & 10.555
Criteria : According to 2CFR 200.318(i) the recipient or subrecipient must maintain records sufficient to detail the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price.
Condition : The School did not maintain records for a food vendor that met the simplified acquisition threshold for the year.
Cause : The Schools procurement policies do not address the frequency of which vendors should be evaluated. In addition, the policies also do not address records retention.
Potential effect: The procurement may not have been proper under the grant requirements.
Questioned costs: None.
Context: A total sample of four (4) of ten (10) purchases related to a certain food provider were selected as a part of procurement and suspension and debarment compliance requirement testing for the Child Nutrition Cluster.
Recommendation : We recommend that the School follow federal procurement guidelines for each of the different purchase thresholds for each vendor. We further recommend that the School retain any documentation created related to the procurement selection and vetting process.
Views of Responsible Officials: See attached Corrective Action Plan.