Finding 374497 (2023-003)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-03-08

AI Summary

  • Core Issue: The school did not follow required formal procurement methods for a contract exceeding $250,000, violating 2 CFR Section 200.320.
  • Impacted Requirements: Compliance with federal procurement standards is critical to ensure proper vendor selection and financial accountability.
  • Recommended Follow-Up: Implement formal procurement processes and monitoring to prevent future noncompliance.

Finding Text

Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster FAL Number: 10.553, 10.555 Pass-Through Agency: California Department of Education Pass-Through Number: 13526, 13396, 13755, 15655 Type of Finding: Significant Deficiency in Internal Control over Procurement Lighthouse Community Charter School – 0413 (LCCS) Lighthouse Community Charter High School – 700 (LCCHS) Lodestar: A Lighthouse Community Charter Public School – 1783 (Lodestar) Criteria or specific requirement: Per 2 CFR Section 200.320 formal procurement methods are required for vendor contracts over $250,000. Condition: During testing of procurement, we noted the School did not follow formal procedures methods required under 2 CFR section 200.320 for a contract with a vendor that resulted in payments totaling $521,576 during the fiscal year 2022-2023. Questioned Costs: No questioned costs. Cause: Bids were obtained in 2019, however, a contract for 2022-2023 was signed without going through the formal bidding process due resource constraints and an increase in unduplicated count and enrollment that shifted the School’s focus on support systems for the shift in demographic. Effect: Noncompliance with 2 CFR Section 200.320. Repeat Finding: Not a repeat finding. Recommendation: We recommend the School follow federal procurement methods and establish monitoring procedures to ensure they are completed. Views of responsible officials and Corrective Action Plan: Management of the School has noted the 2 CFR Section 200.320 to ensure that the procurement requirements are met.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring School Nutrition Programs Significant Deficiency

Other Findings in this Audit

  • 374492 2023-001
    Significant Deficiency
  • 374493 2023-003
    Significant Deficiency
  • 374494 2023-001
    Significant Deficiency
  • 374495 2023-003
    Significant Deficiency
  • 374496 2023-003
    Significant Deficiency
  • 950934 2023-001
    Significant Deficiency
  • 950935 2023-003
    Significant Deficiency
  • 950936 2023-001
    Significant Deficiency
  • 950937 2023-003
    Significant Deficiency
  • 950938 2023-003
    Significant Deficiency
  • 950939 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Elementary and Secondary School Emergency Relief III (esser Iii) Fund $750,213
10.555 National School Lunch Program $529,050
84.010 Title I, Part A, Basic Grants: Low-Income and Neglected $439,066
10.553 Breakfast Program Severe Need $265,000
84.027 Idea Basic Local Assistance Entitlement, Part B, Section 611 $222,120
84.287 Title Iv, Part B, 21st Century Community Learning Centers (cclc) - High School Assets $151,724
84.425 Elementary and Secondary School Emergency Relief III (esser Iii) Fund: Learning Loss $135,567
84.425 Expanded Learning Opportunities (elo) Grant Esser II State Reserve $92,239
10.555 Supply Chain Assistance Funds $90,725
10.555 Meal Supplements $69,517
84.010 School Improvement (csi) Funding for Lea's $50,151
84.365 Title Iii, Limited English Proficient Student Program $46,714
84.367 Title Ii, Part A, Teacher Quality $42,660
84.425 Expanded Learning Opportunities (elo) Grant: Esser III State Reserve, Emergency Needs $18,386
84.425 American Rescue Plan Elementary and Secondary School Emergency Relief - Homeless Children and Youth (arp-Hcy) $1,855
84.424 Title Iv, Student Support and Academic Enrichment Grant $853