FAC Explorer

Finding 35091 (2022-005)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-02-02
Audit: 24809
Organization: School District of Sevastopol (WI)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The District failed to obtain required price or rate quotations for all vendors in procurement transactions, violating compliance standards.
  • Impacted Requirements: Non-compliance with 2 CFR 200.320, which mandates obtaining quotes from multiple qualified sources for small purchases.
  • Recommended Follow-Up: Update the purchasing policy to clarify that small purchase procurement must apply to aggregate purchases, not just single items.

Finding Text

2022-005 Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-155130-SB-546; 2022-155130-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Compliance Requirement Affected: Procurement Type of Finding Significant deficiency in internal control over compliance Condition During our testing of procurement transactions of the program we noted that 4 of 4 vendors selected were not supported by any price or rate quotations to ensure the District is prudent with the monies used towards the program. Criteria 2 CFR 200.320 Methods of Procurement state that if the small purchases method is used, price or rate quotations must be obtained from an adequate number of qualified sources (at least 2) and that the procurement is vendor aggregate, not single item. Proposals must be solicited from an adequate number of qualified offerors. Context The District's procurement did not conform to Uniform Guidance for 4 of 4 vendors tested in our sample. Cause The District did not follow Federal Funds Procurement policy. Effect Obtaining price or rate quotations from an adequate number of vendors allows the District to use federal funds in the most fiscally responsible way. The lack of quotes and proposals may cause the District to over pay for supplies or services. Repeat Finding No Section III ? Federal and State Award Findings and Questioned Costs (Continued) 2022-005 (Continued) Recommendation We recommend the District update their purchasing policy related to small purchases to not refer to single items as small purchase procurement is required to be followed on aggregate purchases by one vendor. Views of Responsible Officials There is no disagreement with the audit finding.

Corrective Action Plan

2022-005 Procurement Federal Assistance Listing Number: 10.CNC District will update their procurement policy for small purchases and proposals with aggregate expenditures over $10,000 by obtaining price quotes from a minimum of two vendors. Responsible Official: Karl Volkmann, Business Manager Anticipated Completion Date: June 30, 2023

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 35089 2022-003
    Material Weakness Repeat
  • 35090 2022-004
    Material Weakness
  • 35092 2022-003
    Material Weakness Repeat
  • 35093 2022-004
    Material Weakness
  • 35094 2022-005
    Significant Deficiency
  • 35095 2022-003
    Material Weakness Repeat
  • 35096 2022-004
    Material Weakness
  • 35097 2022-005
    Significant Deficiency
  • 611531 2022-003
    Material Weakness Repeat
  • 611532 2022-004
    Material Weakness
  • 611533 2022-005
    Significant Deficiency
  • 611534 2022-003
    Material Weakness Repeat
  • 611535 2022-004
    Material Weakness
  • 611536 2022-005
    Significant Deficiency
  • 611537 2022-003
    Material Weakness Repeat
  • 611538 2022-004
    Material Weakness
  • 611539 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $102,273
93.778 Medical Assistance Program $58,841
84.010 Title I Grants to Local Educational Agencies $56,106
10.553 School Breakfast Program $43,501
84.358 Rural Education $40,368
84.027 Special Education_grants to States $26,626
84.367 Improving Teacher Quality State Grants $21,676
10.555 National School Lunch Program $20,866
84.424 Student Support and Academic Enrichment Program $14,036
84.048 Career and Technical Education -- Basic Grants to States $3,059
84.173 Special Education_preschool Grants $3,018
84.060 Indian Education_grants to Local Educational Agencies $670