Finding 1214706 (2025-001)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-05-15

AI Summary

  • Core Issue: The Baldwin County Board of Education did not follow its own procurement policies when contracting for grease trap services, violating federal and state requirements.
  • Impacted Requirements: Non-compliance with U.S. federal regulations and Alabama state law regarding competitive bidding for contracts over $40,000.
  • Recommended Follow-Up: Review and reinforce procurement procedures to ensure adherence to both federal and state laws for future contracts.

Finding Text

Title 2 U.S. Code of Federal Regulations, Part 200.318, of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-Federal entities to have and use its own documented procurement procedures which reflect State and local laws and regulations provided that the procurements conform to applicable Federal law and the standards identified under the Uniform Guidance. Board policy 3.10 provides that the Baldwin County Board of Education will comply with all requirments for the receipt of federal funds. Further, the Code of Alabama 1975, Section 16-13B-1(a), requires all expenditures of funds of whatever nature for labor, services, work, or for the purchase of materials, equipment, supplies, or other personal property involving $40,000.00 or more, made by or on behalf of any city or county board of educaiton to be made under contractual agreement entered into by free and open competitive bidding, on sealed bids, to the lowest responsible bidder. The Baldwin County Board of Education (the "Board") entered into a contract in fiscal year 2025 for grease trap services totaling $73,170.75 that were paid with Child Nutrition Cluster funds. The Board failed to follow its established policies regarding compliance with the requirments for receipt of federal funds. As a result, the Board did not comply with the Code of Albama 1975, Section 16-13B-1(a) or Uniform Guidance procurement requirments for these purchases.

Corrective Action Plan

The Chief School Financial Officer (CSFO) will review the Baldwin County Board of Educaiton's policies and procedures relating to the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) 2 CFR 200.318 and the code of Alabama 1975, Section 16-13B-1(a) with the Purchasing and Procurement Department and Child Nutrition Program Department to ensure compliance iwth the mentioned legal references. A sign-in sheet and agenda will be maintained to document the meeting. In addition to the meeting, a bid for grease trap services was advertised on January 28, 2026, and was awarded on February 19, 2026, ensuring the Baldwin County Board of Education is following state and federal procurement laws and regulations. Also, to mitigate future noncompliance procurement issues, the Chid Nutrition Program Department will monitor monthly vendor activity comparing actual and projected expenditures to purchasing thresholds pertinent to applicable state and federal laws and regulations.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1214703 2025-001
    Material Weakness Repeat
  • 1214704 2025-001
    Material Weakness Repeat
  • 1214705 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $9.01M
84.027 SPECIAL EDUCATION GRANTS TO STATES $7.58M
10.553 SCHOOL BREAKFAST PROGRAM $3.39M
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $1.52M
10.555 NATIONAL SCHOOL LUNCH PROGRAM $863,382
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $542,224
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $445,625
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $276,102
12.U01 Air Force ROTC $259,857
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $227,503
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $160,976
84.126 REHABILITATION SERVICES VOCATIONAL REHABILITATION GRANTS TO STATES $122,672
12.U02 Navy ROTC $86,915
84.196 EDUCATION FOR HOMELESS CHILDREN AND YOUTH $74,582
10.560 STATE ADMINISTRATIVE EXPENSES FOR CHILD NUTRITION $26,267
96.001 SOCIAL SECURITY DISABILITY INSURANCE $4,736