Finding 1218731 (2025-005)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2025
Accepted
2026-06-25

AI Summary

  • Core Issue: The Perry County Board of Education did not follow required procurement methods for federal funds, specifically failing to obtain necessary quotations for services over $10,000.
  • Impacted Requirements: Non-compliance with Uniform Guidance, Part 200.320, which mandates formal procurement processes for purchases exceeding $250,000 and obtaining quotes for those between $10,000 and $250,000.
  • Recommended Follow-Up: Implement controls to ensure compliance with procurement requirements and maintain proper documentation for all contracts related to federal funds.

Finding Text

Title 2 U. S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance), specifies the requirements regarding procurement of property or services under Federal awards and requires the non-federal entity to have and use documented methods of procurement. The Uniform Guidance, Part 200.320, requires formal procurement methods, including sealed bids or proposals, to be used for purchases of property or services that exceed the simplified acquisition threshold, currently $250,000. Additionally, the Uniform Guidance, Part 200.320, requires nonfederal entities to obtain quotations from an adequate number of qualified sources for the purchases of property or services that exceed the micro-purchase threshold ($10,000) but are below the simplified acquisition threshold ($250,000). The Perry County Board of Education (the “Board”) expended $92,166.66 from Title I Grants to Education Agencies for professional development services without obtaining quotations. Additionally, the Board was unable to provide all executed contracts for professional development services for review. The Board did not have controls in place to ensure compliance with the Uniform Guidance, Part 200.320, as it relates to procurement. As a result, the Board did not comply with the Uniform Guidance, Part 200.320, to ensure quotations were obtained for purchases with federal funds or to maintain the appropriate documentation for professional development contracts.

Corrective Action Plan

All purchases over the prescirbed thresholds will be pulled and reviewed before a commitment to purchase or enter into a contract with an agency. If the purchase is deemed necessary, quotes or bids will be prepared and issued. Based on the result of the bids or quotes, the purchase will either be approved or not purchased or contract will be issued.

Categories

Procurement, Suspension & Debarment

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $1.30M
84.027 SPECIAL EDUCATION_GRANTS TO STATES $334,505
84.287 TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS $281,015
10.553 SCHOOL BREAKFAST PROGRAM $272,186
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $193,617
84.367 IMPROVING TEACHER QUALITY STATE GRANTS $95,660
16.710 PUBLIC SAFETY PARTNERSHIP AND COMMUNITY POLICING GRANTS $63,850
10.555 NATIONAL SCHOOL LUNCH PROGRAM $49,467
84.358 RURAL EDUCATION $33,402
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $26,278
84.173 SPECIAL EDUCATION_PRESCHOOL GRANTS $9,777
10.560 STATE ADMINISTRATIVE EXPENSES FOR CHILD NUTRITION $2,912
96.001 SOCIAL SECURITY_DISABILITY INSURANCE $160