Finding 1216150 (2025-001)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-05-29

AI Summary

  • Core Issue: The Dale County Board of Education did not follow required bidding procedures for a public works contract exceeding $100,000.
  • Impacted Requirements: The Board violated both the Uniform Guidance and Alabama's Public Works Law by using a purchasing cooperative without proper bidding.
  • Recommended Follow-Up: Review and update procurement procedures to ensure compliance with federal and state laws for future contracts.

Finding Text

The U. S. Code of Federal Regulations Title 2, Part 200.318, of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) states that non-Federal entities must have and use their 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 within that section. The Code of Alabama 1975, Title 39, commonly referred to as the “Public Works Law”, contains various legal requirements related to public works projects. Public works projects include the construction, installation, repair, renovation or maintenance of public buildings to be paid, in whole or in part, with public funds. Contracts that exceed $100,000.00, materials and labor combined, are required to be competitively bid as provided by the Code of Alabama 1975, Section 39-2-2. Additionally, Title 39 does not provide city and county boards of education authority to use a purchasing cooperative for public works contracts. The Dale County Board of Education (the “Board”) entered into a public works contract for the purchase and installation of intercom and mass notification systems in the amount of $686,804.00, of which $500,000.00 in federal funds were expended during the fiscal year. However, the Board utilized a purchasing cooperative for the purchase and installation of the intercom and mass notification systems. The Board did not ensure public works contracts were bid in accordance with the Uniform Guidance and the Public Works Law. As a result, the Board failed to comply with the requirements of the Uniform Guidance and the Public Works Law.

Corrective Action Plan

Views of Responsible Officials of the Auditee: The Board agreed with the finding. The Board will bid all future federally funded public works contracts in compliance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) 2 CFR 200.318 and the Code of Alabama 1975, Title 39.

Categories

Procurement, Suspension & Debarment

Programs in Audit

ALN Program Name Expenditures
10.553 SCHOOL BREAKFAST PROGRAM $955,800
84.027 SPECIAL EDUCATION GRANTS TO STATES $915,333
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $849,113
16.071 SCHOOL VIOLENCE PREVENTION PROGRAM $500,000
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $182,821
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $145,703
10.555 NATIONAL SCHOOL LUNCH PROGRAM $81,129
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $73,019
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $52,004
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $14,712
10.560 STATE ADMINISTRATIVE EXPENSES FOR CHILD NUTRITION $6,476
96.001 SOCIAL SECURITY DISABILITY INSURANCE $880