Finding 1162120 (2024-008)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2024
Accepted
2025-11-07

AI Summary

  • Core Issue: The Dallas County Board of Education failed to follow procurement rules for federal funds, specifically not obtaining required sealed bids or quotations for purchases over $10,000.
  • Impacted Requirements: Non-compliance with Uniform Guidance, Section 200.320, which mandates formal procurement methods for purchases exceeding $250,000 and adequate quotations for those between $10,000 and $250,000.
  • Recommended Follow-Up: Implement stronger controls to ensure compliance with procurement requirements and maintain proper documentation for all contracts related to federal funds.

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), specifies the compliance requirements regarding procurement of property or services under Federal awards and requires the non-federal entity to have and use documented methods of procuresment. The Uniform Guidance, Section 200.320, requires formal procurement methods, including sealed bids or proposals, to be used for purchases of property or services that exceed the simplified acquisition threshold, currenty $250,000.00. Additionally, the Uniform Guidance, Part 200.320, requires non-federal entities to obtain quotations from an adequate number of qualified sources for the purchases or property or services that exceed the micro-purchase threshold ($10,000) but are below the simplified acquisition threshold ($250,000). The Dallas County Board of Education expended $7,066,370.58 from the Education Stabilization Fund for professional development services without obtaining sealed bids or proposals. Additionally, they were unable to provide all executed contracts for professional development services for review. The Board also expended $90,043.43 from the Education Stabilization Fund for equipment without obtaining quotations. The Board did not have controls in place to ensure compliance with the Uniform Guidance, Part 200.320, as it relates to procurement. As a result, the Board did not comply with the Uniform Guidance Part 200.320, to ensure sealed bids or quotations were obtained for purchases with federal funds or to maintain the appropriate documentation for professional development contracts. This finding was previously reported as Finding 2023-005.

Corrective Action Plan

Federal Programs will obtain quotes from multiple sources on any purchases concerning professional development for federal funds. If these quotes exceed the simplified acquisition threshold, the Board will go through the bid process to ensure that funds are expended according to Uniform Guidance, Part 200.320.

Categories

Procurement, Suspension & Debarment

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $3.93M
84.027 SPECIAL EDUCATION GRANTS TO STATES $978,128
10.553 SCHOOL BREAKFAST PROGRAM $595,583
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $250,456
10.555 NATIONAL SCHOOL LUNCH PROGRAM $130,249
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $92,560
12.000 ARMY - ROTC $75,075
84.196 EDUCATION FOR HOMELESS CHILDREN AND YOUTH $74,002
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $67,679
84.358 RURAL EDUCATION $63,486
84.425 EDUCATION STABILIZATION FUND $50,040
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $36,861
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $19,786
96.001 SOCIAL SECURITY DISABILITY INSURANCE $1,060