Finding Text
2025-001: Procurement Noncompliance - Child Nutrition Cluster Condition: During fiscal year 2025, the District did not consistently follow federal procurement requirements under 2 CFR 200.320 and 7 CFR Part 210. Specifically: Aggregate and individual purchases exceeded the $3,500 micro-purchase threshold without use of small purchase or formal procurement procedures. Formal procurement of a prime food vendor did not follow required procedures, including issuance of a written solicitation, public advertisement, cost/price analysis, and documentation of contract terms. Cause: Inadequate oversight of procurement thresholds and incomplete understanding of federal formal procurement requirements. Effect: Noncompliance with federal procurement requirements, increasing the risk of unallowable costs and reduced transparency in vendor selection. Recommendation: The District should continue to implement and monitor updated procurement procedures, including use of centralized tracking, pre-approval of purchases, and adherence to formal solicitation processes. Management Response: The District agrees with the finding. Corrective action was initiated in April 2025, including adoption of revised procurement procedures, implementation of a centralized tracking system, and initiation of a formal bid process for recurring food purchases.