Finding Text
Finding 2022-004. Procurement and Suspension and Debarment. (ALN 84.027 Special Education Grants to States and ALN 84.027X IDEA, Part B ARP Grant) CRITERIA: Appendix II to 2 CFR 200, Contract Provisions for Non-Federal Entity Contracts under Federal Awards, requires that all contracts in excess of $10,000 must address termination for cause and for convenience by non-federal entities, including the manner by which it will be affected and the basis for settlement. 2 CFR 200.319 requires that all procurement transactions for the acquisition of property or services required under a federal award must be conducted in a manner providing full and open competition. For small purchase procedures above the micro-purchase threshold, price or rate quotations must be obtained from an adequate number of qualified sources. CONDITION: In securing professional services for special populations, we noted that the district failed to obtain price quotations from more than one vendor in two (2) instances. We also noted that in one (1) instance the contract for professional services did not address termination for cause and for convenience. CAUSE: The district did not fully understand the procurement requirements outlined in 2 CFR 200.319. EFFECT: The effect is noncompliance with federal procurement standards. QUESTIONED COSTS: None RECOMMENDATION: We recommend that the district align its procurement practices with the more stringent of state law or 2 CFR 200.319 when purchasing professional services in connection with these federal award programs. VIEWS OF RESPONSIBLE OFFICIALS: See the school district?s response in the auditee?s corrective action plan in this report.