FAC Explorer

Finding 20668 (2022-001)

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Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-01-25
Audit: 22972
Organization: Mechanicsburg Area School District (PA)
Auditor: Boyer & Ritter LLC

AI Summary

  • Core Issue: The District failed to follow proper procurement procedures as required by Uniform Guidance and Pennsylvania Public School Code.
  • Impacted Requirements: Non-compliance with documented procurement procedures and formal methods for purchases exceeding the simplified acquisition threshold.
  • Recommended Follow-Up: Ensure adherence to the procurement policy and document compliance processes moving forward.

Finding Text

Finding 2022-001 - Procurement Criteria: The Uniform Guidance requires that non-federal entities must have and use documented procurement procedures consistent with laws and regulations and the standards for the acquisition of property or services under a federal award or subaward in accordance with 2 CFR 200.318. Additionally, the non-federal entity is required to follow formal procurement methods when the value of the procurement for property or service under a federal financial assistance award exceeds the simplified acquisition threshold in accordance with 2 CFR 200.320. Furthermore, the District must adhere to the Pennsylvania Public School Code 24 P.S. 1-10, 7-751 and 8-807.1 when procuring goods and services to remain in compliance with commonwealth procurement requirements. Condition: The District did not follow the appropriate procedures to comply with the procurement requirements as established by Uniform Guidance and Pennsylvania Public School Code. Cause and Effect: The District has utilized the same vendor for several years without obtaining annual bids. It did not follow its procurement policy and ultimately did not comply with the standard of the Uniform Guidance and Pennsylvania Public School Code. Questioned Cost: None Context: During testing, it was noted that the District had purchased bakery items from a vendor without following its procurement policy. This was a isolated instance within the scope of the tested population. Identification of Repeat Finding: No Recommendation: We recommend that the District ensure it complies with its written procurement policy. The District should document its process and how it complies with the procurement standards. Views of Responsible Officials: The District will establish processes to ensure that the procurement policy is followed when applicable and necessary.

Corrective Action Plan

CORRECTIVE ACTION PLAN Year Ended June 30, 2022 Mechanicsburg Area School District respectfully submits the following corrective action plan for the year ended June 30, 2022. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule of findings and questioned costs. Finding 2022-001 - Procurement Federal Agency: U.S. Department of Agriculture Pass-through agency: Pennsylvania Department of Education Assistance Listing Number: Child Nutrition Cluster ? 10.553/10.555/10.559 Corrective Action Planned: The District will establish processes to ensure that the procurement policy is followed when applicable and necessary. Anticipated Completion Date: Action has already been taken by the District to resolve the underlying issue of this finding. Contact Person Responsible: Greg Longwell, Director of Business Operations/CFO If there are any questions regarding this plan, please call Greg Longwell, Director of Business Operations / CFO, at 717-506-0869 or email at glongwell@mbgsd.org

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.027 Special Education_grants to States $691,830
84.010 Title I Grants to Local Educational Agencies $504,250
10.553 School Breakfast Program $424,790
10.555 National School Lunch Program $221,693
84.367 Improving Teacher Quality State Grants $95,904
10.559 Summer Food Service Program for Children $90,318
84.365 English Language Acquisition State Grants $48,966
84.424 Student Support and Academic Enrichment Program $35,165
10.555 Covid-19 National School Lunch Program $28,435
32.009 Emergency Connectivity Fund Program $18,907
84.173 Special Education_preschool Grants $4,427
10.649 Covid-19 Pandemic Ebt Administrative Costs $3,063
84.425 Covid-19 Education Stabilization Fund $1,740
93.778 Medical Assistance Program $214