Finding Text
2025-004: Procurement Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Federal Award Identification Number and Year: 252IL058N1099-2024, 252IL058N1199-2024, 252IL058N1099-2025, 252IL058N1199-2025 Pass-Through Agency: Illinois State Board of Education Pass-Through Number(s): 25-4210-00, 25-4220-00, 24-4210-00, 24-4220-00 Award Period: July 1, 2024 – June 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Uniform Grant Guidance (2 CFR 200.303) requires non-federal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal Laws, regulations and program compliance requirements. Effective internal controls should include formal documentation of review and approval by the board for procurements over the small purchases threshold. Condition: Procurement methods for certain purchases made with federal award funds were not adequately documented or approved in accordance with the District’s procurement policy. Questioned Costs: None Context: 3 of the 4 procurements tested. Cause: The District did not follow its established internal control procedures for procurement. Effect: May result in a disallowed cost if grant requirements are not followed. Repeat Finding: No Recommendation: We recommend the District review federal procurement requirements to ensure proper documentation and authorization procedures are followed. The District should consider implementing a federal procurement checklist to support compliance. Views of Responsible Officials: There is no disagreement with the audit finding.