Finding 366524 (2023-001)

- Repeat Finding
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-02-08
Audit: 289363

AI Summary

  • Core Issue: The District failed to follow proper procurement procedures as required by federal and state regulations.
  • Impacted Requirements: Non-compliance with Uniform Guidance (2 CFR 200.318 and 200.320) and Pennsylvania Public School Code.
  • Recommended Follow-up: The District should adhere to its procurement policy and document compliance processes to avoid future issues.

Finding Text

Finding 2023-001 - Procurement Federal Agency: U.S. Department of Agriculture Pass-through Agency: Pennsylvania Department of Education Assistance Listing Number: Child Nutrition Cluster – 10.553/10.555 Criteria: The Uniform Guidance requires that non-federal entities must have and use documented procurement procedures consistent with laws and regulations and the standards for the acquisition of property or services under a federal award or subaward in accordance with 2 CFR 200.318. Additionally, the non-federal entity is required to follow formal procurement methods when the value of the procurement for property or service under a federal financial assistance award exceeds the simplified acquisition threshold in accordance with 2 CFR 200.320. Furthermore, the District must adhere to the Pennsylvania Public School Code 24 P.S. 1-10, 7-751 and 8-807.1 when procuring goods and services to remain in compliance with commonwealth procurement requirements. Condition: The District did not follow the appropriate procedures to comply with the procurement requirements as established by Uniform Guidance and Pennsylvania Public School Code. Cause and Effect: The District has utilized the same vendor for several years without obtaining annual bids. It did not follow its procurement policy and ultimately did not comply with the standard of the Uniform Guidance and Pennsylvania Public School Code. Questioned Cost: None Context: During testing, it was noted that the District had purchased bakery items from a vendor without following its procurement policy. This was an isolated instance within the scope of the tested population. Identification of Repeat Finding: Yes Recommendation: We recommend that the District ensure it complies with its written procurement policy. The District should document its process and how it complies with the procurement standards. Views of Responsible Officials: The finding was initially identified during the conduct of the audit of the fiscal year ended June 30, 2022, which occurred in October 2022. The District was not able to remedy this finding for the fiscal year ended June 30, 2023 as the contract that the District had with the vendor was for multiple years. The District will establish processes to ensure that the procurement policy is followed when applicable and necessary.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $497,408
10.553 School Breakfast Program $338,819
10.555 National School Lunch Program $247,163
84.027 Special Education_grants to States $161,463
84.367 Improving Teacher Quality State Grants $79,893
84.425 Education Stabilization Fund $65,593
84.365 English Language Acquisition State Grants $47,568
84.424 Student Support and Academic Enrichment Program $32,856
84.173 Special Education_preschool Grants $4,883
10.649 Pandemic Ebt Administrative Costs $628
93.778 Medical Assistance Program $489