Finding 34643 (2022-001)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-02-13
Audit: 29881
Organization: Morris County Usd 417 (KS)

AI Summary

  • Issue: The District failed to comply with K.S.A. 72-1151 by not obtaining competitive bids for purchases over $20,000.
  • Impact: This noncompliance occurred due to the Superintendent's unilateral approval of purchases without following required procedures, indicating a lack of oversight.
  • Recommendation: Ensure all purchases over $20,000 are approved by the governing body and adhere to all applicable bidding statutes.

Finding Text

Criteria: In accordance with Government Auditing Standards, the District is required to comply with laws and regulations related to the District's operations. The District did not comply with K.S.A. 72-1151 which requires competitive bids for purchases exceeding $20,000. Condition: Purchases were made during the year ended June 30, 2022 that exceeded the $20,000 threshold; however the bid requirements in K.S.A. 72-1151 were not followed. Cause: The Superintendent was solely responsible for approving these purchases and did not follow the prescribed bid procedures. We feel that management override is the cause of the noncompliance, coupled with a lack of oversight by the governing body. Effect: Purchases were made that were not in compliance with the bid requirements in the statutes. Recommendation: The District should follow all applicable statutes, and the governing body should be approving all purchases in advance and ensuring that all required processes are being followed.

Corrective Action Plan

The Board will require approval for such expenditures made in short succession and for the bid process to be followed as required by law when the ultimate result of the transaction is a purchase of goods or services of an amount exceeding $20,000.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $665,293
10.555 National School Lunch Program $477,991
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $171,390
84.010 Title I Grants to Local Educational Agencies $157,096
10.553 School Breakfast Program $113,317
10.559 Summer Food Service Program for Children $60,422
93.558 Temporary Assistance for Needy Families $30,000
84.367 Improving Teacher Quality State Grants $20,852
84.424 Student Support and Academic Enrichment Program $15,915
10.649 Pandemic Ebt Administrative Costs $614
93.079 Cooperative Agreements to Promote Adolescent Health Through School-Based Hiv/std Prevention and School-Based Surveillance $267