Finding 1136286 (2024-001)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-05-07

AI Summary

  • Core Issue: The school district did not obtain necessary price quotes for a service vendor exceeding $10,000, violating competitive purchasing requirements.
  • Impacted Requirements: Compliance with federal guidelines for procurement, specifically the need for competitive quotes for expenditures over $10,000.
  • Recommended Follow-Up: Ensure the district collects adequate vendor quotes for all future purchases between $10,000 and $250,000 to maintain compliance.

Finding Text

PROGRAM ALN: 84.027A & 84.173A PROGRAM TITLE: SPECIAL EDUCATION - GRANTS TO STATES (SPECIAL EDUCATION CLUSTER); PASSED THROUGH THE MISSISSIPPI DEPARTMENT OF EDUCATION; COMPLIANCE REQUIREMENT: PROCUREMENT, SUSPENSION, DEBARMENT CONDITION: THE SCHOOL DISTRICT FAILED TO ACQUIRE DOCUMENTATION (PRICE QUOTES) TO DEMONSTRATE THAT COMPETITIVE PURCHASING REQUIREMENTS WERE MET FOR ONE INSTANCE OR PROGRAM EXPENDITURES FROM A SERVICE VENDOR THAT EXCEEDED $10,000. CRITERIA: THE FEDERAL OFFICE OF MANAGEMENT AND BUDGET SETS FORTH UNIFORM GUIDANCE FOR THE ADMINISTRATION OF FEDERAL GRANT AWARDS. THE DISTRICT IS CHARGED WITH THE RESPONSIBILITY OF DESIGNING AND IMPLEMENTING A SET OF INTERNAL CONTROLS TO ENSURE COMPLIANCE WITH COMPETITIVE PURCHASING REQUIREMENTS OF THE GRANT AWARD. FOR ALL PURCHASES OF GOODS AND SERVICES EXCEEDING THE MICRO-PURCHASE THRESHOLD AMOUNT OF $10,000, THE DISTRICT MUST SHOW THAT COMPETITIVENESS WAS INTRODUCED INTO THE PURCHASING PROCESS THROUGH QUOTES OR FORMAL BID PROCESS. PRICE AND RATE QUOTATIONS MUST BE OBTAINED FROM AN ADEQUATE NUMBER OF QUALIFIED SOURCES FOR PURCHASES FALLING WITHIN THIS RANGE. THE DISCRETION OF DETERMINING THE ADEQUATE NUMBER OF QUALIFIED SOURCES IS LEFT TO THE NONFEDERAL ENTITY. CAUSE OF CONDITION: THE CAUSE OF THIS CONDITIONS APPEARS TO BE OVERSIGHT BY MANAGEMENT. POTENTIAL EFFECT OF CONDITION: THIS CONDITION COULD RESULT IN NONCOMPLIANCE WITH FEDERAL PROGRAM GUIDELINES AND POSSIBLE QUESTIONED COST TO THE PROGRAM. QUESTIONED COST: NONE PREVALENCE OF THE CONDITION: THIS APPEARS TO BE AN ISOLDATED MATTER. REPEAT FINDING: THIS IS NOT A REPEAT FINDING. RECOMMENDATION: IT IS RECOMMENDED THAT THE SCHOOL DISTRICT ACQUIRE AN ADEQUATE NUMBER OF VENDOR QUOTES WHEN THE PROGRAM EXPENDITURES ARE BETWEEN $10,000 AND $250,000. VIEW OF RESPONSIBLE OFFICIAL(S): IN AGREEMENT. SEE THE SCHOOL DISTRICT RESPONSE IN THE CORRECTIVE ACTION PLAN IN THIS REPORT.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 559843 2024-001
    Significant Deficiency
  • 559844 2024-001
    Significant Deficiency
  • 1136285 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $1.02M
84.010 Title I Grants to Local Educational Agencies $661,155
84.027 Special Education Grants to States $610,765
10.553 School Breakfast Program $281,605
84.358 Rural Education $55,331
84.173 Special Education Preschool Grants $17,751
84.424 Student Support and Academic Enrichment Program $16,461
84.425 Education Stabilization Fund $11,199
93.778 Medical Assistance Program $9,395
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $7,810