Finding Text
2022 ? 002 Federal Agency: US Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Numbers: 10.553 & 10.555 Federal Award Identification Number and Year: S425V210045 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number: 212MN061N1199 Award Period: Fiscal Year Ended June 30, 2022 Type of Finding: - Material Weakness in Internal Control over Compliance - Material Noncompliance (Modified Opinion) Criteria or specific requirement: The Uniform Guidance requires the School to have a written procurement policy per ?200.319. This policy should detail the method of procurement the School follows, including the School's micro-purchase threshold. Condition: The School has a written procurement policy, but it did not detail a micro-purchase threshold. Questioned costs: None Context: The School has a written procurement policy, but it did not detail its micro-purchase threshold. But it did note that it required bids for any contract over $25,000. Cause: The School was not aware that this requirement was missing from its current policy. Effect: The School is not in compliance with this policy requirement. This could result in the related procedures for procurements in amounts below their policy's requirement to obtain bids for contracts over $25,000 not being clear to School staff, which could result in improper contracts being paid with federal funds. The School could also possibly award a contract to a vendor that would charge more than other responsible bidders. Repeat Finding: No Recommendation: We recommend that the School review its procurement policy for compliance with the Uniform Guidance and add a micro-purchase threshold to its procurement policy. Views of responsible officials: There is no disagreement with the audit finding.