Finding 28648 (2022-001)

Material Weakness
Requirement
I
Questioned Costs
$1
Year
2022
Accepted
2023-02-05

AI Summary

  • Core Issue: The District failed to document the procurement process for purchases over $10,000, violating Uniform Guidance requirements.
  • Impacted Requirements: Documentation of cost analysis and vendor selection must be maintained to ensure fair competition and compliance.
  • Recommended Follow-Up: Review and enhance procurement policies to ensure all decisions are clearly documented and compliant with regulations.

Finding Text

Type of Finding: Material Weakness in Internal Control Over Compliance and Compliance Finding Criteria: Uniform guidance requires that the District ensure that purchases over the micro-purchase threshold, $10,000 per District policy, go through the appropriate procurement procedures. This includes properly considering alternative vendors to see if the District is paying a reasonable price for the item or service and documenting that decision making process. This could be done through quotes, whether formal or informal, or reviewing alternative services online and documenting some applicable prices. This helps to ensure open and fair competition for the federal spending is maintained each year. Condition: In our testing sample for the Child Nutrition Cluster, we noted three instances where the district did not properly document their cost analysis or decision-making process for going with the vendor they utilized. Context: It was noted that for two contracts the district did not retain documentation of quotes received. It was also noted that for a contract with undetermined period terms that the district did not retain documentation of a cost / benefit analysis that would explain why the district did not receive bids or quotes for it during the year. This was a statistically valid sample. Questioned Costs: $337,023 Cause: The District used two of the vendors to supplement goods provided by the district?s main food service vendor. The other vendor the district has an ongoing contract with undefined period terms and was unaware of the procurement requirement for this procurement. Effect: The District was not in compliance with the Uniform Guidance requirements around procurement. Repeat Finding: No Recommendation: We recommend the District review its procurement policies and procedures to ensure that the all procurements are sufficiently documented such that an outside party with knowledge of the requirements would clearly see the methods of procurement utilized and the rationale behind such methods. View of Responsible Official: There is no disagreement with the audit finding.

Categories

Questioned Costs Procurement, Suspension & Debarment

Other Findings in this Audit

  • 28646 2022-001
    Material Weakness
  • 28647 2022-002
    Material Weakness
  • 28649 2022-002
    Material Weakness
  • 28650 2022-001
    Material Weakness
  • 28651 2022-002
    Material Weakness
  • 28652 2022-001
    Material Weakness
  • 28653 2022-002
    Material Weakness
  • 28654 2022-001
    Material Weakness
  • 28655 2022-002
    Material Weakness
  • 28656 2022-001
    Material Weakness
  • 28657 2022-002
    Material Weakness
  • 28658 2022-003
    Significant Deficiency
  • 28659 2022-003
    Significant Deficiency
  • 28660 2022-003
    Significant Deficiency
  • 28661 2022-004
    Significant Deficiency
  • 605088 2022-001
    Material Weakness
  • 605089 2022-002
    Material Weakness
  • 605090 2022-001
    Material Weakness
  • 605091 2022-002
    Material Weakness
  • 605092 2022-001
    Material Weakness
  • 605093 2022-002
    Material Weakness
  • 605094 2022-001
    Material Weakness
  • 605095 2022-002
    Material Weakness
  • 605096 2022-001
    Material Weakness
  • 605097 2022-002
    Material Weakness
  • 605098 2022-001
    Material Weakness
  • 605099 2022-002
    Material Weakness
  • 605100 2022-003
    Significant Deficiency
  • 605101 2022-003
    Significant Deficiency
  • 605102 2022-003
    Significant Deficiency
  • 605103 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.027 Special Education_grants to States $6.94M
10.553 School Breakfast Program $2.86M
84.010 Title I Grants to Local Educational Agencies $2.38M
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $1.30M
21.027 Coronavirus State and Local Fiscal Recovery Funds $789,904
10.559 Summer Food Service Program for Children $510,808
84.367 Supporting Effective Instruction $503,264
10.555 National School Lunch Program $475,152
84.048 Career and Technical Education -- Basic Grants to States $345,838
84.424 Student Support and Academic Enrichment Program $312,546
84.365 English Language Acquisition State Grants $297,600
84.173 Special Education_preschool Grants $238,022
84.181 Special Education-Grants for Infants and Families $159,741
84.425 Education Stabilization Fund $89,096
84.002 Adult Education - Basic Grants to States $65,864
84.060 Indian Education_grants to Local Educational Agencies $60,947
21.019 Coronavirus Relief Fund $5,950