Finding 366519 (2023-001)

-
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-02-07
Audit: 289340
Auditor: Forvis LLP

AI Summary

  • Core Issue: The School did not follow its own procurement policy for purchases between $10,000 and $100,000.
  • Impacted Requirements: Compliance with procurement standards outlined in 2 CFR sections 200.318 to 200.326 was not met.
  • Recommended Follow-Up: Ensure the purchasing and grant management departments monitor all purchases to align with procurement policies.

Finding Text

Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10555 Federal Award Program Year: July 1, 2022 – July 30, 2023 Pass-Through Agency: Arizona Department of Education Pass-Through Number: 07-84-09-001 Type of Finding: Other matter Compliance Requirement: Procurement and Suspension and Debarment Criteria: Non-federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. Condition: The School’s policy governing procurement requirements for the purchase of goods or services when the aggregate dollar amount is greater than $10,000 but less than $100,000 was not followed. Questionable Costs: None reportable Context: Two vendors with purchases over $10,000 and under $100,000 were selected for testing and no price/rate quotes were obtained for one of the vendors. Effect: Purchases of goods or services were made that may not have been obtained in the most effective manner or in compliance with Uniform Guidance. Cause: The School did not adequately monitor purchases from its vendors to ensure compliance with it policies. Identification as a Repeat Finding: Not a repeat finding Recommendation: All purchases should be monitored by the purchasing and grant management departments to ensure that the purchases are in compliance with the School’s procurement policies.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Actions: Our management team has acknowledged the finding and is committed to ensuring that we adhere to the $10,000 threshold. To facilitate this, we will conduct a review of all vendor invoices to identify any instances where adjustments may be necessary. We will also assign a dedicated team member to review purchases on a monthly basis. This proactive measure will enable us to stay vigilant and address any potential deviations from the established threshold promptly. Moreover, if during our monthly reviews we identify that we are approaching the $10,000 threshold, we will take the initiative to seek additional quotes if necessary. Contact person responsible for corrective action: Brittany Fuentes, Director Completion date: January 4, 2024

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $3.92M
10.553 School Breakfast Program $1.22M
84.425 Education Stabilization Fund $450,659
84.010 Title I Grants to Local Educational Agencies $62,665
84.027 Special Education_grants to States $30,691
84.424 Student Support and Academic Enrichment Program $15,784
84.367 Improving Teacher Quality State Grants $9,828