Finding Text
2024 – 001: Procurement and Suspension and Debarment
Federal Agency: U.S. Department Education
Federal Program Name: Charter School Program
Assistance Listing Number: 84.282
Pass-Through Agency: Indiana Department of Education
Pass-Through Numbers: U282A200017, S282D200002
Award Period: July 1, 2023 – June 30, 2024
Type of Finding:
Material Weakness in Internal Control Over Compliance
Other Matters
Criteria or specific requirement: Per Charter School Program, Subtitle A, Chapter 2 Part 200,
Subpart D, section 200.318 of the Code of Federal Regulations requires Charter Schools to have a
written procurement policy that includes certain requirements as it relates to procuring good and
services using federal dollars. Additionally, 2 CFR 180.995 requires that the Charter School has a
written policy where the Charter School should perform a check to ensure vendors are not debarred.
Condition: During our testing, it was noted that PLA did not follow the written policy in place for
number of quotes and quote cost analysis. PLA did not comply with procurement policy it has in place
as the number of quotes for two (2) of five (5) procured purchases selected did not obtain the number
of quotes required by the policy.
During our testing, it was noted during that there is no written policy that requires PLA to verify that
vendors are suspended or debarred. We noted that PLA did not complete and document its verification
that vendors are not suspended or debarred vendors prior to being utilized. Four (4) of four (4) vendors
selected for testing were utilized during the audit period that did not have this documented. During audit
procedures, these vendors were checked and were not suspended or debarred.
Questioned costs: None
Context: PLA was unaware of the federal requirements for procurement and suspension and
debarment.
Cause: PLA’s procurement policy did not include all federal requirements.
Effect: Procured purchases could be completed not in accordance with PLA and federal requirements.
Vendors could be utilized for federal programs that are suspended and debarred.
Repeat finding: No.
Recommendation: We recommend that PLA review its procurement policy to ensure that a
suspension and debarment formal check and documentation be included to ensure that all federal
requirements are included in its written policies.
Views of responsible officials: There is no disagreement with the audit finding.