Finding 1214942 (2025-001)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-05-19

AI Summary

  • Core Issue: The District failed to follow federal procurement laws by not competitively bidding or obtaining price quotes for services from Trumbull County ESC.
  • Impacted Requirements: Compliance with 2 CFR §200.320 and the District's procurement policy was not met, risking questioned costs.
  • Recommended Follow-Up: Implement proper internal controls to ensure future compliance, including competitive bidding or obtaining necessary approvals for noncompetitive proposals.

Finding Text

During the fiscal year, the District contracted with Trumbull County Educational Service Center (ESC) to provide purchased services. These services included expenditures of $62,545 which were paid for out of the Special Education fund and subject to the Federal procurement laws. Under 2 CFR §200.320 the District should have competitively bid the services needed or obtained price quotes from qualified sources as further defined in the School’s procurement policy. The District also has the option of procurement by noncompetitive proposal if approved by the grantor agency. The District did not provide a contract, price quotes from qualified sources, or a grantor approved noncompetitive proposal waiver. The District did not have the proper internal controls in place to ensure compliance over procurement. The District should competitively bid for services, obtain written price quotes from an adequate number of sources, or obtain approval for a noncompetitive proposal from the grantor agency. Failing to have the proper controls in place could result in questioned costs.

Corrective Action Plan

1. The District will no longer use federal funds for special education bussing. 2. The district will submit a separate request for approval for a noncompetitive proposal when procuring with an entity using federal funds to the Department of Education and Workforce.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1214941 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $510,041
84.027 SPECIAL EDUCATION GRANTS TO STATES $260,034
10.553 SCHOOL BREAKFAST PROGRAM $124,172
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $62,072
10.555 NATIONAL SCHOOL LUNCH PROGRAM $42,571
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $40,823
84.358 RURAL EDUCATION $40,758
84.425 EDUCATION STABILIZATION FUND $36,706
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $31,248
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $4,781