Finding 1140663 (2023-007)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2025-06-09
Audit: 358330
Organization: City of Danbury (CT)
Auditor: Rsm US LLP

AI Summary

  • Core Issue: The City did not follow its own procurement policies, failing to obtain the required number of quotes for purchases.
  • Impacted Requirements: Noncompliance with 2 CFR procurement standards, specifically regarding bid processes for micro and small purchases.
  • Recommended Follow-Up: Implement controls to ensure compliance with procurement policies and update thresholds to align with federal standards.

Finding Text

Finding 2023-007: Significant Deficiency, Procurement and Noncompliance Finding – Procurement – Internal Control over Procurement Assistance Listing Program Title and Number: Special Education Cluster (IDEA) 84.027 Federal Agency: Department of Education Pass-through Entity: N/A Award year: 2022 and 2023 Criteria or specific requirement: The City must follow procurement standards set out at 2 CFR sections 200.318 through 200.326. There are three types of procurement methods described in this section: informal procurement methods (for micro-purchases and simplified acquisitions); formal procurement methods (through sealed bids or proposals); and noncompetitive procurement methods. For any of these methods, the recipient or subrecipient must maintain and use documented procurement procedures, consistent with the standards of this section and §§ 200.317, 200.318, and 200.319. Condition: SPED/Grant Administration did not adhere to the Danbury Public Schools “Bids and Purchases-Competitive” procurement policies, that were compliant with Federal Part 3 compliance guidelines. The DPS had a procurement policy in place that was consistent with the standards of the aforementioned compliance sections; however, the City did not follow their own procurement policy requiring two quotes for a micro-purchase expenditure, three quotes for a small purchase expenditure and advertising for bids publicly for the large >$5,000 purchase expenditures. They only obtained one quote for each expenditure for micro and small purchases, and they did not use a public bid process for expenditures over $5,000. Cause: While the City has a formal policy around required bids, the thresholds had not been updated in several years and there was a lack of controls that ensured the City DPS procurement policy was being adhered to in order to be compliant with the compliance standards. Effect: Possible effects on the performance is centered around potentially not awarding the purchase to the lowest qualified bidder. Prevalence: Systemic in nature. Questioned Cost: None Repeat Finding: No Recommendation: We recommend that the City implement controls that require review of each expenditure to ensure the City obtained the adequate number of bids for each expenditure. Additionally, we recommend that the City update their procurement thresholds to be more consistent with the compliance thresholds. Views of Responsible Officials: Management agrees with the finding.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 564158 2023-002
    Material Weakness Repeat
  • 564159 2023-002
    Material Weakness Repeat
  • 564160 2023-002
    Material Weakness Repeat
  • 564161 2023-002
    Material Weakness Repeat
  • 564162 2023-002
    Material Weakness Repeat
  • 564163 2023-002
    Material Weakness Repeat
  • 564164 2023-002
    Material Weakness Repeat
  • 564165 2023-002
    Material Weakness Repeat
  • 564166 2023-002
    Material Weakness Repeat
  • 564167 2023-002
    Material Weakness Repeat
  • 564168 2023-002
    Material Weakness Repeat
  • 564169 2023-002
    Material Weakness Repeat
  • 564170 2023-002
    Material Weakness Repeat
  • 564171 2023-002
    Material Weakness Repeat
  • 564172 2023-002
    Material Weakness Repeat
  • 564173 2023-002
    Material Weakness Repeat
  • 564174 2023-002
    Material Weakness Repeat
  • 564175 2023-002
    Material Weakness Repeat
  • 564176 2023-002
    Material Weakness Repeat
  • 564177 2023-002
    Material Weakness Repeat
  • 564178 2023-002
    Material Weakness Repeat
  • 564179 2023-002
    Material Weakness Repeat
  • 564180 2023-002
    Material Weakness Repeat
  • 564181 2023-002
    Material Weakness Repeat
  • 564182 2023-002
    Material Weakness Repeat
  • 564183 2023-002
    Material Weakness Repeat
  • 564184 2023-002
    Material Weakness Repeat
  • 564185 2023-002
    Material Weakness Repeat
  • 564186 2023-002
    Material Weakness Repeat
  • 564187 2023-002
    Material Weakness Repeat
  • 564188 2023-002
    Material Weakness Repeat
  • 564189 2023-002
    Material Weakness Repeat
  • 564190 2023-002
    Material Weakness Repeat
  • 564191 2023-002
    Material Weakness Repeat
  • 564192 2023-002
    Material Weakness Repeat
  • 564193 2023-002
    Material Weakness Repeat
  • 564194 2023-002
    Material Weakness Repeat
  • 564195 2023-002
    Material Weakness Repeat
  • 564196 2023-002
    Material Weakness Repeat
  • 564197 2023-002
    Material Weakness Repeat
  • 564198 2023-002
    Material Weakness Repeat
  • 564199 2023-002
    Material Weakness Repeat
  • 564200 2023-002
    Material Weakness Repeat
  • 564201 2023-002
    Material Weakness Repeat
  • 564202 2023-002
    Material Weakness Repeat
  • 564203 2023-002
    Material Weakness Repeat
  • 564204 2023-002
    Material Weakness Repeat
  • 564205 2023-002
    Material Weakness Repeat
  • 564206 2023-002
    Material Weakness Repeat
  • 564207 2023-002
    Material Weakness Repeat
  • 564208 2023-002
    Material Weakness Repeat
  • 564209 2023-002
    Material Weakness Repeat
  • 564210 2023-002
    Material Weakness Repeat
  • 564211 2023-002
    Material Weakness Repeat
  • 564212 2023-002
    Material Weakness Repeat
  • 564213 2023-002
    Material Weakness Repeat
  • 564214 2023-002
    Material Weakness Repeat
  • 564215 2023-002
    Material Weakness Repeat
  • 564216 2023-006
    Significant Deficiency Repeat
  • 564217 2023-006
    Significant Deficiency Repeat
  • 564218 2023-006
    Significant Deficiency Repeat
  • 564219 2023-006
    Significant Deficiency Repeat
  • 564220 2023-007
    Significant Deficiency
  • 564221 2023-007
    Significant Deficiency
  • 564222 2023-007
    Significant Deficiency
  • 564223 2023-007
    Significant Deficiency
  • 1140600 2023-002
    Material Weakness Repeat
  • 1140601 2023-002
    Material Weakness Repeat
  • 1140602 2023-002
    Material Weakness Repeat
  • 1140603 2023-002
    Material Weakness Repeat
  • 1140604 2023-002
    Material Weakness Repeat
  • 1140605 2023-002
    Material Weakness Repeat
  • 1140606 2023-002
    Material Weakness Repeat
  • 1140607 2023-002
    Material Weakness Repeat
  • 1140608 2023-002
    Material Weakness Repeat
  • 1140609 2023-002
    Material Weakness Repeat
  • 1140610 2023-002
    Material Weakness Repeat
  • 1140611 2023-002
    Material Weakness Repeat
  • 1140612 2023-002
    Material Weakness Repeat
  • 1140613 2023-002
    Material Weakness Repeat
  • 1140614 2023-002
    Material Weakness Repeat
  • 1140615 2023-002
    Material Weakness Repeat
  • 1140616 2023-002
    Material Weakness Repeat
  • 1140617 2023-002
    Material Weakness Repeat
  • 1140618 2023-002
    Material Weakness Repeat
  • 1140619 2023-002
    Material Weakness Repeat
  • 1140620 2023-002
    Material Weakness Repeat
  • 1140621 2023-002
    Material Weakness Repeat
  • 1140622 2023-002
    Material Weakness Repeat
  • 1140623 2023-002
    Material Weakness Repeat
  • 1140624 2023-002
    Material Weakness Repeat
  • 1140625 2023-002
    Material Weakness Repeat
  • 1140626 2023-002
    Material Weakness Repeat
  • 1140627 2023-002
    Material Weakness Repeat
  • 1140628 2023-002
    Material Weakness Repeat
  • 1140629 2023-002
    Material Weakness Repeat
  • 1140630 2023-002
    Material Weakness Repeat
  • 1140631 2023-002
    Material Weakness Repeat
  • 1140632 2023-002
    Material Weakness Repeat
  • 1140633 2023-002
    Material Weakness Repeat
  • 1140634 2023-002
    Material Weakness Repeat
  • 1140635 2023-002
    Material Weakness Repeat
  • 1140636 2023-002
    Material Weakness Repeat
  • 1140637 2023-002
    Material Weakness Repeat
  • 1140638 2023-002
    Material Weakness Repeat
  • 1140639 2023-002
    Material Weakness Repeat
  • 1140640 2023-002
    Material Weakness Repeat
  • 1140641 2023-002
    Material Weakness Repeat
  • 1140642 2023-002
    Material Weakness Repeat
  • 1140643 2023-002
    Material Weakness Repeat
  • 1140644 2023-002
    Material Weakness Repeat
  • 1140645 2023-002
    Material Weakness Repeat
  • 1140646 2023-002
    Material Weakness Repeat
  • 1140647 2023-002
    Material Weakness Repeat
  • 1140648 2023-002
    Material Weakness Repeat
  • 1140649 2023-002
    Material Weakness Repeat
  • 1140650 2023-002
    Material Weakness Repeat
  • 1140651 2023-002
    Material Weakness Repeat
  • 1140652 2023-002
    Material Weakness Repeat
  • 1140653 2023-002
    Material Weakness Repeat
  • 1140654 2023-002
    Material Weakness Repeat
  • 1140655 2023-002
    Material Weakness Repeat
  • 1140656 2023-002
    Material Weakness Repeat
  • 1140657 2023-002
    Material Weakness Repeat
  • 1140658 2023-006
    Significant Deficiency Repeat
  • 1140659 2023-006
    Significant Deficiency Repeat
  • 1140660 2023-006
    Significant Deficiency Repeat
  • 1140661 2023-006
    Significant Deficiency Repeat
  • 1140662 2023-007
    Significant Deficiency
  • 1140664 2023-007
    Significant Deficiency
  • 1140665 2023-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $4.89M
84.010 Title I Grants to Local Educational Agencies $2.12M
84.027 Special Education Grants to States $1.82M
10.553 School Breakfast Program $1.23M
84.365 English Language Acquisition State Grants $477,880
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $384,273
21.019 Coronavirus Relief Fund $381,275
84.287 Twenty-First Century Community Learning Centers $321,647
10.560 State Administrative Expenses for Child Nutrition $305,888
21.027 Coronavirus State and Local Fiscal Recovery Funds $302,328
84.048 Career and Technical Education -- Basic Grants to States $212,011
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $169,977
84.424 Student Support and Academic Enrichment Program $155,860
14.218 Community Development Block Grants/entitlement Grants $110,974
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $99,261
97.042 Emergency Management Performance Grants $89,336
84.002 Adult Education - Basic Grants to States $77,806
84.173 Special Education Preschool Grants $74,338
16.034 Coronavirus Emergency Supplemental Funding Program $70,532
21.016 Equitable Sharing $48,869
20.600 State and Community Highway Safety $40,137
93.069 Public Health Emergency Preparedness $33,351
20.616 National Priority Safety Programs $30,686
10.649 Pandemic Ebt Administrative Costs $21,337
10.579 Child Nutrition Discretionary Grants Limited Availability $18,124
90.401 Help America Vote Act Requirements Payments $16,687
20.106 Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and Covid-19 Airports Programs $14,531
10.559 Summer Food Service Program for Children $11,221
93.758 Preventive Health and Health Services Block Grant Funded Solely with Prevention and Public Health Funds (pphf) $9,816
10.558 Child and Adult Care Food Program $8,773
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $6,855
16.738 Edward Byrne Memorial Justice Assistance Grant Program $4,290
84.425 Education Stabilization Fund $171