Finding 1169604 (2024-007)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2026-01-19
Audit: 382583
Organization: Guam Department of Education (GU)

AI Summary

  • Core Issue: GDOE lacks documented procurement procedures that comply with federal requirements, specifically 2 CFR 200.318(a) and 2 CFR 200.324(a).
  • Impacted Requirements: Failure to perform and retain cost or price analyses for procurement transactions above the simplified acquisition threshold.
  • Recommended Follow-Up: GDOE should update its procurement policies to include all necessary provisions from the Compliance Supplement.

Finding Text

Finding No.: 2024-007 Federal Agency: U.S. Department of Education AL Program: 84.027 Special Education Grants to States Federal Award No.: H027A220013, H027A230013 Area: Procurement and Suspension and Debarment Questioned Costs: $0 Criteria: 2 CFR 200.318(a) states the recipient or subrecipient must maintain and use documented procedures for procurement transactions under a Federal award or subaward, including for acquisition of property or services. These documented procurement procedures must be consistent with State, local, and tribal laws and regulations and the standards identified in §§ 200.317 through 200.327. Accordingly, documented procedures must ensure consistency to standards in 2 CFR 200.324(a) which articulates that the recipient or subrecipient must perform a cost or price analysis for every procurement transaction, including contract modifications, in excess of the simplified acquisition threshold. Condition: GDOE does not have procurement policies that meet the requirements of 2 CFR 200.318(a) and 2 CFR 200.324(a). Specifically, GDOE lacks documented procedures to ensure compliance with procurement transactions under a Federal award or subaward, requiring the performance and retention of cost price analysis for procurement transactions above the simplified acquisition threshold. Cause: GDOE lacks adequate internal control over periodic review of procurement policies, specifically, ensuring all required key provisions from the Compliance Supplement are included in the procurement policies. Effect: GDOE is in noncompliance with applicable procurement and suspension and debarment requirements. No questioned cost is presented because our procedures did not identify procurement of goods or services that would have required a cost price analysis in the current fiscal year. Recommendation: GDOE should revisit its procurement policies and ensure all required provisions stated in the Compliance Supplement are covered.

Corrective Action Plan

Views of Auditee and Corrective Actions: GDOE disagrees with the finding. Auditors cited the lack of procurement policies that meet 2 CFR 200.324(a), but did not find any evidence that GDOE did not comply with procurement regulations.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring

Other Findings in this Audit

  • 1169595 2024-003
    Material Weakness Repeat
  • 1169596 2024-003
    Material Weakness Repeat
  • 1169597 2024-004
    Material Weakness Repeat
  • 1169598 2024-004
    Material Weakness Repeat
  • 1169599 2024-005
    Material Weakness Repeat
  • 1169600 2024-005
    Material Weakness Repeat
  • 1169601 2024-006
    Material Weakness Repeat
  • 1169602 2024-006
    Material Weakness Repeat
  • 1169603 2024-007
    Material Weakness Repeat
  • 1169605 2024-008
    Material Weakness Repeat
  • 1169606 2024-009
    Material Weakness Repeat
  • 1169607 2024-010
    Material Weakness Repeat
  • 1169608 2024-010
    Material Weakness Repeat
  • 1169609 2024-011
    Material Weakness Repeat
  • 1169610 2024-011
    Material Weakness Repeat
  • 1169611 2024-012
    Material Weakness Repeat
  • 1169612 2024-012
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 EDUCATION STABILIZATION FUND $105.41M
84.403 CONSOLIDATED GRANT TO THE OUTLYING AREAS $30.00M
84.181 SPECIAL EDUCATION-GRANTS FOR INFANTS AND FAMILIES $1.66M
10.558 CHILD AND ADULT CARE FOOD PROGRAM $648,102
84.027 SPECIAL EDUCATION GRANTS TO STATES $561,018
10.560 STATE ADMINISTRATIVE EXPENSES FOR CHILD NUTRITION $383,408
93.600 HEAD START $356,080
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $331,968
93.092 AFFORDABLE CARE ACT (ACA) PERSONAL RESPONSIBILITY EDUCATION PROGRAM $232,589
12.U01 ARMY JROTC $220,601
12.U02 AIR FORCE JROTC $190,116
84.371 COMPREHENSIVE LITERACY DEVELOPMENT $173,631
84.372 STATEWIDE LONGITUDINAL DATA SYSTEMS $167,485
84.323 SPECIAL EDUCATION - STATE PERSONNEL DEVELOPMENT $157,292
10.541 CHILD NUTRITION-TECHNOLOGY INNOVATION GRANT $148,409
10.555 NATIONAL SCHOOL LUNCH PROGRAM $125,219
10.579 CHILD NUTRITION DISCRETIONARY GRANTS LIMITED AVAILABILITY $79,076
12.U03 MARINE JROTC $42,462
10.574 TEAM NUTRITION GRANTS $26,237
15.875 ECONOMIC, SOCIAL, AND POLITICAL DEVELOPMENT OF THE TERRITORIES $19,840
10.645 FARM TO SCHOOL STATE FORMULA GRANT $14,242
10.568 EMERGENCY FOOD ASSISTANCE PROGRAM (ADMINISTRATIVE COSTS) $3,986