Finding Text
Finding Type. Immaterial Noncompliance / Significant Deficiency in Internal Control over Compliance (Procurement, Suspension and Debarment). Federal Programs. Child Nutrition Cluster; U.S. Department of Agriculture; ALN 10.553, and 10.555. Criteria. A recipient of federal awards is required to obtain quotes or bids from an adequate number of qualified sources as determined by the District's purchasing policies/procedures for federal awards. Condition. The District indicated that they have no documentation of quotes being obtained for purchases over the micropurchase threshold but less than the small purchase threshold (greater than $5,000 but less than $30,512). Cause. This condition was caused by management oversight in knowing the federal compliance requirements of the grant, and maintaining appropriate supporting documentation to evidence compliance. Effect. As a result of this condition, the District was exposed to the risk that disbursements of federal awards were not subject to full and open competition. Questioned Costs. No costs have been questioned as a result of this finding. Recommendation. We recommend that for purchases over the micropurchase threshold but less than the small purchase threshold (greater than $5,000 but less than $30,512) the District obtain and retain price or rate quotations from an adequate number of qualified sources. For purchases over the small purchases threshold ($30,512), we recommend sealed bids are obtained and retained. View of Responsible Officials. The District agrees with the finding and has prepared a corrective action plan.