Finding Text
Federal Agency: U.S. Department of Education
Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds
Assistance Listing Numbers: 21.027
Federal Award Identification Number and Year: SLFRP2619, 2023
Pass-Through Agency: Minnesota Department of Education
Award Period: July 1, 2022 – June 30, 2023
Type of Finding: Material Weakness in Internal Control Over Compliance and Material Noncompliance
Criteria: Non-federal entities other than states must follow the procurement standards set out at c CFR sections 200.318 through 200.326. This includes utilizing one of the five allowable procurement methods, including small purchase guidelines for items over the micro-purchase threshold and sealed bids, competitive proposals, or noncompetitive proposals when items exceed the simplified acquisition threshold. In addition, the Uniform Guidance requires that the entity maintain records sufficient to detail the history of the procurement.
Condition: During our testing of the District’s procurements within the State and Local Fiscal Recovery Funds program, it was noted that all three procurements tested did not have sufficient documentation recording the appropriate method and history of the transaction.
Questioned Costs: None
Context: The three procurements which were tested did not retain documentation detailing the procurement process or what quotes were obtained.
Cause: Time pressure led to this requirement not being met.
Effect: The District was not in compliance with the documentation requirements for procurement transactions as detailed in the Uniform Guidance.
Repeat Finding: This is not a repeat finding from the prior year.
Recommendation: We recommend that the District reviews its procedures and controls over procurement for the Coronavirus State and Local Fiscal Recovery Funds program to ensure it is following federal guidance and internal policies over the procurement process and documenting the appropriate method and history of the transaction.
View of Responsible Official: There is no disagreement with the audit finding.