Finding 1172797 (2025-003)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-02-06

AI Summary

  • Core Issue: Procurement practices did not meet federal regulations, leading to unfair competition and inadequate contract management.
  • Impacted Requirements: Violations include lack of equitable distribution of micro-purchases, absence of cost/price analysis, and improper handling of sealed bids.
  • Recommended Follow-Up: Offer training on federal procurement rules, establish procedures for fair purchasing, and enhance contract management controls.

Finding Text

Federal Program and Assistance Listing Number: Child Nutrition Cluster-ALN: 10.553, 10.555. Criteria: Federal regulations require full and open competition in procurement, equitable distribution of micro-purchase, cost/price analysis for formal contracts, and proper contract management (2 CFR 200.318-.326). Condition: Micro-purchases were not equitably distributed, cost/price analyes were not conducted prior to formal contracts, and full and open competition was restricted by unreasonable requirements. Sealed bids were not properly opened or evaluated, and contract management was insufficient. Cause: Lack of understanding of federal procurement requirements and insufficient internal controls over procurement process. Effect: Increased risk of favoritism, unallowable costs, and noncompliance with federal procurement standards. Questioned Costs: None identified. Recommendation: Provide training on federal procurement requirements, implement procedures for equitable distributions and cost/price analysis, and strengthn contract management controls. Views of Responsible Officials: The District will provide training on procurement and micro-purchases.

Corrective Action Plan

Federal regulations required full and open competition in procurement, equitable distribution of micro-purchases, cost/price analysis for formal contract, and proper contract management (2 CFR 200.318-326). Micro-purchases were not equitably distributed, cost/price analyses were not conducted prior to formal contracts, and full and open competition was restricted by unreasonable requirements. Sealed bids were not properly opened or evaluated, and contract management was insufficient. Purchsing staff attended a training during the Summer of 2025 that covered cumulative spend tracking, appropriate procurement methods, and required documentation for the various procurement methods. All documentation, including analyses, quotes, and vendor selection rationale, are uploaded within the purchasing module to ensure appropriate supporting documentation is kept with the purchase. Documentation is reviewd by the purchasing staff at the time each purchase order is requested.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1172789 2025-001
    Material Weakness Repeat
  • 1172790 2025-002
    Material Weakness Repeat
  • 1172791 2025-003
    Material Weakness Repeat
  • 1172792 2025-001
    Material Weakness Repeat
  • 1172793 2025-002
    Material Weakness Repeat
  • 1172794 2025-003
    Material Weakness Repeat
  • 1172795 2025-001
    Material Weakness Repeat
  • 1172796 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $549,376
93.600 HEAD START $372,000
10.553 SCHOOL BREAKFAST PROGRAM $262,478
10.555 NATIONAL SCHOOL LUNCH PROGRAM $137,251
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $67,738
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $52,196
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $45,695
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $41,336
84.027 SPECIAL EDUCATION GRANTS TO STATES $17,969
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $14,935
10.560 STATE ADMINISTRATIVE EXPENSES FOR CHILD NUTRITION $5,118
84.369 GRANTS FOR STATE ASSESSMENTS AND RELATED ACTIVITIES $4,090
84.425 EDUCATION STABILIZATION FUND $3,729