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Finding 2025-001: Federal Award Finding – Procurement (Significant Deficiency) Child Nutrition Cluster (ALN 10.553 / 10.555) Federal Agency: U.S. Department of Agriculture Pass-Through Entity: New York State Education Department Assistance Listing Numbers: 10.553, 10.555 Criteria Title 2 CFR §200.318(a) requires non-federal entities to use documented procurement procedures consistent with state, local, and federal law. The School District’s procurement policy requires competitive bidding for purchases exceeding $20,000. Condition During the fiscal year ended June 30, 2025, the School District made purchases charged to the Child Nutrition Program in excess of $20,000 without obtaining competitive bids as required by the School District’s procurement policy. Cause District personnel did not consistently apply the School District’s written procurement policy when making purchases funded by the Child Nutrition Program. Effect The School District did not comply with federal procurement requirements under 2 CFR §200.318(a). Failure to follow required procurement procedures increases the risk that goods and services are not obtained at the most competitive price and limits assurance that federal funds are expended in accordance with applicable requirements. Questioned Costs None. Based on audit procedures performed, the costs tested appeared reasonable and allowable. Auditor’s Recommendation We recommend the School District strengthen controls over procurement to ensure purchases charged to federal programs comply with the School District’s written procurement policy and federal procurement requirements. This includes training staff responsible for procurement and implementing monitoring procedures to ensure competitive bidding requirements are consistently followed.