Finding Text
1. FINDING NUMBER: 2025 - 005 2. THIS FINDING IS: New X Repeat from Prior year Year originally reported? 3 .Federal Program Name and Year: Child Nutrition Cluster 4. Project No.:4210, 4220 5. AL No.: 10.555, 10.553 6. Passed Through: ISBE 7. Federal Agency: U.S. Department of Argriculture 8. Criteria or specific requirement (including statutory, regulatory, or other citation): Section 200.318(i) of Title 2 of the Code of Federal Regulations states that entities must maintain detailed records showing the history of procurement, including rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Section 200.318(b) of Title 2 of the Code of Federal Regulations states that entities must ensure that suppliers are following the terms, conditions, and specifications of their contracts. 9. Condition: The District did not maintain sufficient records to detail the history of procurement. The District did not ensure that vendors complied with all contract terms, conditions, and specifications. This is considered an instance of non-compliance. 10. Questioned Costs: None 11. Context: During testing of procurement under the Child Nutrition Cluster, a sample of vendors was selected for review. We requested supporting documentation to verify the selection of one of the vendors and the District was unable to provide such documentation. 12. Effect:The District is not in compliance with the requirements to have detailed records of the procurement history and to ensure that their vendors and suppliers follow the terms of their contracts. 13. Cause: The District did not maintain or was unable to locate required supporting documentation for procurement procedures when selecting a vendor charged to the Child Nutrition Cluster, indicating weaknesses in record retention and documentation controls. 14. Recommendation: We recommend that the District review its Uniform Guidance policies with all staff to ensure procurement requirements are understood and implement controls to ensure compliance. 15. Management's response: Management agrees with this finding and response is included within the corrective action plan.