Finding Text
Federal Program Affected
Federal Agency: U.S. Department of Agriculture
Pass-Through Entity: California Department of Education (CDE)
Program Name: Child Nutrition Cluster
Assistance Listing Number: 10.553, 10.555
Compliance Requirement: I (Procurement)
Criteria or Specific Requirements
Per Title 2, U.S. Code of Federal Regulations, Subtitle A, Chapter II, Part 200, Subpart D, Section
200.320(a)(2), the non-Federal entity must have and use documented procedures, for informal
procurement methods when the value of the procurement for property or services under a
Federal award does not exceed the simplified acquisition threshold (SAT). Small purchases up to
$250,000 require small purchase procedures to be used, which involves price or rate quotations
must be obtained from an adequate number of qualified sources.
Condition
The District did not have sufficient controls in place to ensure that small purchase procedures
are followed in accordance with federal requirements. The District was unable to provide price
or rate quotations for 1 of the 3 vendors tested.
Questioned Costs
There were no questioned costs associated with the identified condition.
Context
The condition was identified through inquiry with District personnel and through review of
available supporting documentation. A nonstatistical sample of 3 vendors out of 7 vendors were
selected for procurement testing.
Effect
The District has not complied with the requirements identified in Title 2, U.S. Code of Federal
Regulations, Subtitle A, Chapter II, Part 200, Subpart D, Section 200.320(a)(2).
Cause
The condition identified appears to have materialized due to the Districts lack of adherence to
the established procedures to ensure compliance.
Repeat Finding
No.
Recommendation
The District should review the established procurement policies with the staff and provide
necessary training.