Finding Text
2025-007: U.S. Department of Agriculture Passed through State of Nevada Department of Agriculture Child Nutrition Cluster School Breakfast Program, 10.553 National School Lunch Program, 10.555 Fresh Fruit and Vegetable Program, 10.582 U.S. Department of Treasury Passed through State of Nevada Department of Education and the State of Nevada Department of Agriculture COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 Procurement, Suspension and Debarment Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing numbers 10.582, and 21.027 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires entities use their own documented procurement procedures, provided they reflect State, Local, and Federal laws and regulations. In addition, procurements must be carried out in a manner consistent with free and open competition and contain the applicable provisions described in Appendix II to Part 200 for contracts under federal awards. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding obtaining rate quotations or maintaining sole source vendor documentation, if applicable. In addition, contracts were missing required provisions per Appendix II to Part 200 for contracts under federal awards. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or maintaining sole source vendor documentation, if applicable, or including required contract provisions. Effect: Noncompetitive purchases may be deemed improper. Contractors may not be aware of required terms and conditions. Questioned Costs: None Context/Sampling: Fresh Fruit and Vegetable, 10.582 There were only two vendors that had purchases over the micro-purchase threshold over $10,000. We tested both vendors and noted the vendor documentation maintained did not have the documented rate quotations or single source vendor documentation. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of four procurement transactions out of 20 was selected for testing, including one contract subject to Appendix II to Part 200. The one contract was missing certain required provisions from Appendix II to Part 200. Repeat Finding from Prior Year(s): Yes, prior year finding 2024-004 Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations or maintaining single source vendor documentation and including required contract provisions. Views of Responsible Officials: Management agrees with the finding.