Finding 1132256 (2024-001)

Material Weakness
Requirement
I
Questioned Costs
$1
Year
2024
Accepted
2025-04-24

AI Summary

  • Core Issue: The Board did not follow required procurement procedures for federal funding, specifically for $388,464.54 spent on virtual therapy services.
  • Impacted Requirements: Non-compliance with Section 200.320(b) of the Uniform Guidance and Board Policy 3.09.3(g) regarding formal procurement methods.
  • Recommended Follow-Up: Review and implement proper procurement procedures to ensure compliance with federal regulations and internal policies moving forward.

Finding Text

Title 2 U. S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance), specifically the compliance requirements regarding procurement, require the Board to use specific methods of procurement when using federal award funding. Section 200.320(b) of the Uniform Guidance requires formal procurement methods to be used when the value of the procurement transaction under a Federal Award exceeds the simplified acquisition threshold ($250,000.00) of the recipient or subrecipient. These formal procurement methods are competitive, require public notice and can be completed utilizing one of three methods provided by the Uniform Guidance. Further, Board Policy 3.09.3(g) requires the Board to procure goods and services as prescribed in the Uniform Guidance. During fiscal year 2024, the Walker County Board of Education expended $388,464.54 of Special Education Cluster funds for virtual therapy (teletherapy) services without the use of appropriate procurement procedures as provided by the Uniform Guidance. The Board failed to follow Uniform Guidance and its established policy to ensure appropriate procurement procedures are followed when using federal award funding. As a result, the Board is not in compliance with the applicable procurement requirements.

Categories

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

Other Findings in this Audit

  • 555814 2024-001
    Material Weakness
  • 555815 2024-001
    Material Weakness
  • 1132257 2024-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $7.83M
84.010 Title I Grants to Local Educational Agencies $2.82M
84.027 Special Education Grants to States $2.21M
10.553 School Breakfast Program $1.19M
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $531,593
84.287 Twenty-First Century Community Learning Centers $356,096
84.424 Student Support and Academic Enrichment Program $256,234
10.555 National School Lunch Program $187,897
84.048 Career and Technical Education -- Basic Grants to States $174,951
84.173 Special Education Preschool Grants $99,000
10.558 Child and Adult Care Food Program $74,973
84.196 Education for Homeless Children and Youth $47,765
84.126 Rehabilitation Services Vocational Rehabilitation Grants to States $36,548
84.365 English Language Acquisition State Grants $21,657
96.001 Social Security Disability Insurance $1,780