Finding 28923 (2022-003)

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Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-03-02
Audit: 30383
Organization: Regional School Unit No. 10 (ME)

AI Summary

  • Core Issue: Procurement procedures were not followed for projects funded by the Distance Learning and Telemedicine grant.
  • Impacted Requirements: Purchases over $150,000 must use a sealed bid process, not a Request for Proposal (RFP).
  • Recommended Follow-Up: Management should review federal guidelines and internal policies to ensure compliance before future procurement activities.

Finding Text

2022-003 ? U.S. Department of Agriculture, For the Period July 1, 2021 through June 30, 2022, Assistance Listing #10.855 Distance Learning and Telemedicine Statement of Condition: Proper procurement procedures were not followed for applicable projects. Criteria: All purchases made through this grant are required to be made following federal procurement guidelines, which dictate that all purchases over $150,000 for clearly identifiable items are solicited through a sealed bid process. Cause: When performing our compliance testing, we discovered that the RSU solicited the purchase of these goods through a Request for Proposal (RFP) process rather than a sealed bid process. Effect: The school unit could potentially overpay for services or equipment purchased. Recommendation: We recommend that management reviews federal guidelines and internal policies prior to the procurement process to ensure the proper requirements are followed. Questioned Costs: None

Corrective Action Plan

Management Response/Corrective Action Plan: Due to COVID-19 and other factors the Business Manager was not involved with the procurement of goods for the RUS Grant. RSU 10 will be pursuing similar grants, but the Business Manager will be involved in all the steps along the way with the Technology Director. This was a lack of communication, which the Business Manager is working on correcting.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.425 Elementary and Secondary School Emergency Relief 3 - Covid $4.49M
84.425 Elementary and Secondary School Emergency Relief 2 - Covid $2.07M
84.010 Title Ia Disadvantaged $1.34M
10.555 National School Lunch Program $819,919
84.027 Local Entitlement $575,844
10.855 Distance Learning and Telemedicine $390,434
10.553 National School Lunch Program - Breakfast Program $356,940
84.425 Elementary and Secondary School Emergency Relief 1 - Covid $301,298
84.287 21st Century $214,767
10.558 Child and Adult Care Food Program $79,726
10.559 Covid-19 National School Lunch Program - Summer Food Service $77,111
10.555 National School Lunch Program - Donated Commodities $75,246
10.582 Fresh Fruit and Vegetable Program $68,487
84.027 Local Entitlement - Arp - Covid $64,863
84.358 Rural Low Income $45,556
84.425 Elementary and Secondary School Emergency Relief 2 - Learning Loss - Covid $36,108
10.560 State Administrative Expenses for Child Nutrition: Supply Chain Assistance $35,162
84.425 Homeless Children and Youth - Covid $18,316
10.555 National School Lunch Program - Emergency Revenue Assistance $9,617
84.173 Local Entitlement - Preschool Grants - Arp - Covid $4,602
10.649 Pandemic Ebt Administrative Costs: Snap $3,684
84.173 Local Entitlement - Preschool Grants $3,058
10.555 National School Lunch Program - School Food Equipment $2,989
84.425 Cares Governor's Emergency Education Relief Fund - Covid $2,000