Finding Text
Oak Park Elementary School District 97 06-016-0970-02 SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ending June 30, 2022 SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 1. FINDING NUMBER:14 2022 - 004 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: National School Breakfast Program, National School Lunch Program - PY 2021 and 2022 and Summer Food Service Program - PY 21 4. Project No.: 21-4220-00, 22-4220-00, 21-4210-00, 22-4210-00, 21-4225-00 5. ASL No.: 10.553, 10.555, 10.559 6. Passed Through: Illinois State Board of Education 7. Federal Agency: Department of Agriculture 8. Criteria or specific requirement (including statutory, regulatory, or other citation) Per section 200.320 in Subpart D of the code of federal regulations (CFR) the non-federal entity is responsible for complying with small purchase procedures for procurement. The acquisition of property or services, the aggregate dollar amount of which is higher than the micro-purchase threshold but does not exceed the simplified acquisition threshold. If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate by the non-Federal entity. 9. Condition15 The District procured $125,877 in goods from a vendor and did not comply with their internal procurement policy. 10. Questioned Costs16 No reportable questioned costs were identified. 11. Context17 The District's Board policy for procurement requires that all contracts for the purchase of supplies, materials, or work, or contracts with private carriers for transportation of pupils, involving an expenditure in excess of $25,000, except those specifically exempted by Section 10-20.21 of the School Code, shall be subject to the bid process set forth in Section 10-20.21. The Assistant Superintendent for Finance and Operations or his/her designee shall guarantee due (e.g., sufficient and adequate) advertisement for bids for the sale of those goods and services required by the District. Furthermore the District's procurement policy requires that the Assistant Superintendent of Finance and Operations or his/her designee may enter into contracts for the purchase of goods, services, supplies, materials, or work involving an expenditure between $3,500 and $25,000 without prior Board approval. Prior to making the expenditure between $3,500 and $25,000, the Assistant Superintendent of Finance and Operations shall secure three price quotations or bids. 12. Effect The District did not follow appropriate procurement policy procedures for purchases made within the food service program and funded under the federal award. 13. Cause The District's internal controls over procurement did not properly determine that the procurement of goods from the vendor exceeded $25,000 and was required to be bid out and operate under a formal contract. 14. Recommendation We recommend that the District solicit bids for the goods procured for the vendor in compliance with internal policies and federal award requirements. 15. Management's response18 See corrective action plan. 14 See footnote 11. 15 Include facts that support the deficiency identified on the audit finding (?200.516 (b)(3)). 16 Identify questioned costs as required by ?200.516 (a)(3 - 4). 17 See footnote 12. 18 To the extent practical, indicate when management does not agree with the finding, questioned cost, or both.