Finding 372230 (2023-101)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-03-05
Audit: 293527
Organization: Destiny School, Incorporated (AZ)

AI Summary

  • Answer: Two procurement errors were found in recent purchases.
  • Trend: Lack of vendor review and non-compliance with federal procurement procedures are recurring issues.
  • List: Ensure vendor suspension checks are documented and follow federal guidelines for formal bids in future purchases.

Finding Text

For two purchases tested requiring procurement the following errors were noted: • For 2 of 2 purchases, documentation was not available for review to demonstrate that the vendor had been reviewed for suspension or debarment prior to the purchases being made. • For 1 of 2 purchases made, although the school's internal control policy over procurement was followed, federal procurement procedures, which required formal bids or a request for proposal, were not followed. Only three written quotes were obtained for the acquisition of two buses totaling $296,240.

Corrective Action Plan

The procurement procedure policy has been updated to include thresholds to comply with federal procurement guidelines of grants for purchases in excess of $250,000 and ensuring that vendors were not suspended or debarred prior to purchases being made. These procedures and all other federal guidelines will be strictly adhered to. All documentation supporting procurement will be retained.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 948672 2023-101
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $803,869
84.041 Impact Aid $472,357
84.010 Title I Grants to Local Educational Agencies $154,061
10.553 School Breakfast Program $24,304
84.367 Improving Teacher Quality State Grants $22,773
84.358 Rural Education $22,233
10.555 National School Lunch Program $7,295
84.173 Special Education_preschool Grants $987
84.027 Special Education_grants to States $879