Finding 1182150 (2025-002)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-03-23
Audit: 393508
Auditor: EIDE BAILLY LLP

AI Summary

  • Core Issue: The District failed to provide necessary procurement documents for federal awards, indicating a significant compliance deficiency.
  • Impacted Requirements: This finding violates Title 2, CFR, Part 200.318(a), which mandates proper documentation and adherence to procurement procedures.
  • Recommended Follow-Up: The District must align all federal procurement transactions with its policy and ensure retention of all related documents.

Finding Text

Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education Program Name: Child Nutrition Cluster Federal Financial Assistance Listing: 10,553, 10.555 Award Year: 2024-2025 Fiscal Year Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Significant Deficiency and Non-Compliance Criteria Title 2, Code of Federal Regulations (CFR), Part 200, Subpart D, Section 200.318(a) requires recipients and subrecipients of Federal awards to maintain and use documented procurement procedures that conform to standards identified in Title 2, CFR, Part 200, Subpart D, Section 200.318. This includes the retention of all procurement related documents in connection with federal awards. Condition The District was unable to provide procurement documents, including copies of bid documents and contracts for a sampled covered transaction. Cause The condition appears to have materialized due to the District not adhering to its federal procurement policy. Effect The District did not comply with general procurement standards required by Title 2, CFR Section 200.318(a), and the District policy. Questioned Costs There were no questioned costs identified related to the condition identified above. Context/Sampling Total population of 4 transactions were identified and 3 samples were selected haphazardly. Tested resulted in a 100% exception rate which resulted in the remaining 1 transaction from the population being selected for testing. Additional testing of the remaining 1 transaction also resulted in an exception. Repeat Finding No. Recommendation The District should ensure that all federal procurement transactions are aligned with its procurement policy. As required under the District’s procurement policy, the District should retain all procurement related documents.

Corrective Action Plan

The District will ensure that all federal procurement transactions are aligned with its procurement policy. As required under the District’s procurement policy, the District will retain all procurement related documents. Due to significant turnover in the Food Services Director and Chief Business Officer positions over the past few years, it was identified that certain district policies may not have been fully followed. Going forward, the District will ensure that procurement policies are properly followed.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring

Other Findings in this Audit

  • 1182145 2025-002
    Material Weakness Repeat
  • 1182146 2025-002
    Material Weakness Repeat
  • 1182147 2025-002
    Material Weakness Repeat
  • 1182148 2025-002
    Material Weakness Repeat
  • 1182149 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.041 IMPACT AID $2.06M
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $396,317
84.027 SPECIAL EDUCATION GRANTS TO STATES $384,464
84.425 EDUCATION STABILIZATION FUND $185,547
10.555 NATIONAL SCHOOL LUNCH PROGRAM $83,252
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $51,375
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $50,693
10.665 SCHOOLS AND ROADS - GRANTS TO STATES $43,380
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $33,163
10.558 CHILD AND ADULT CARE FOOD PROGRAM $4,689
10.553 SCHOOL BREAKFAST PROGRAM $1,133