Finding Text
SPECIAL EDUCATION CLUSTER – PROCUREMENT U.S. Department of Education Special Education Cluster Assistance Listing Number: 84.027 & 84.173 Passed Through Minnesota Department of Education Pass Through Number: H027A220087 Award Period: July 1, 2023 – June 30, 2024 Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance (Modified Opinion) Criteria or specific requirement: Non-federal entities other than states must follow the procurement standards set out at CFR section 200.318 through 200.326. This includes utilizing one of the five allowable procurement methods, including small purchase guidelines for items over the micro-purchase threshold and sealed bids, competitive proposals, or noncompetitive proposals when items exceed the simplified acquisition threshold. In addition, the Uniform Guidance requires the entity maintain records sufficient to detail the history of the procurement. Condition: During our testing of the District’s procurements within the Special Education program, it was noted not all procurements followed the appropriate method and history of the transaction was not sufficiently documented. Context: Five selections over the $3,500 micropurchase threshold were selected for testing. Federal regulations require that purchases above this threshold follow documented procurement procedures, including evidence of open competition and retention of contract documentation. The District did not provide documentation of an open and competitive process for four of these purchases and did not maintain the executed contract for one purchase. Questioned costs: None Cause: Time pressure led to this requirement being missed. Effect: Lack of proper documentation could lead to using vendors for small purchase acquisition without ensuring comparable pricing from other vendors and justifying costs. Repeat finding: Yes – 2023-006. Recommendation: We recommend that the District ensure quotes are obtained for all procurements that are above the micro-purchase threshold, and that this process is documented along with their assessments of cost analysis performed. Views of responsible officials: There is no disagreement with the finding.