Finding Text
Finding #2024-007; Education Stabilization Fund – CFDA No. 84.425; Year Ended June 30, 2024
CONDITION:
In 2023-24, the District failed to obtain required bids for certain goods/services purchased, but rather only obtained quotes.
CRITERIA:
Internal controls should be in place to ensure that proper procurement policies are followed adhering to both federal and state requirements. (See Finding #2024-004 in the Compliance section.)
CAUSE:
The cause of the lack of controls is primarily due to a lack of segregation of duties, as noted in Finding #2024-002 in Section II – Internal Control Over Financial Reporting. Ultimately, with limited staff in the business office and one of those members being new, the necessary monitoring and review procedures over procurement are lacking.
EFFECT:
The effect is that the internal controls over grant expenditures are not functioning as designed, resulting in noncompliance with procurement policies and requirements.
RECOMMENDATION:
We recommend that procurement procedures be modified and internal controls followed to ensure that bids or quotes are obtained for goods/supplies and services, as required. Management and any staff involved in the purchasing process should be cognizant of the federal and state thresholds for bids and quotes, including the District’s own policy. Effective controls should include at least a two-person monitoring of purchases.
MANAGEMENT RESPONSE:
Management agrees with the recommendations. The procedures surrounding purchases will be modified and internal controls followed to ensure that bids or quotes are obtained for goods/supplies and services, as required. Management and any staff involved in the purchasing process will be informed of the federal and state thresholds for bids and quotes, including the District’s own policy. Controls will include a two-person monitoring of purchases.