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.