Finding Text
Federal Grants Management - Procurement Policy Assistance Listing Numbers: Child Nutrition Cluster, 10.553 School Breakfast Program, 10.555 National School Lunch Program, and 10.559 Summer Food Service Program for Children Type of Finding: Significant deficiency in internal control over compliance. Condition: During our testing of procurement transactions of the program we noted that the selection of a vendor for food supplies was not supported by an adequate number of quotes (at least 2) to ensure the District is prudent with the monies used towards the program. Additionally, our testing of internal controls over compliance identified the following weakness in internal control: there is not proper identification of what purchases require quotes or bids. Criteria or specific requirement: 2 CFR 2..320 Methods of Procurement state that if the small purchases method is used, price or rate quotations must be obtained from an adequate number of qualified sources (at least 2). Cause: The District did not follow Federal Funds Procurement Policy. Effect: Obtaining price quotes from an adequate number of vendors allows the District to use federal funds in the most fiscally responsible way. The lack of price quotes may cause the District to over pay for supplies or services. Recommendation: We recommend the District follow their purchasing policy related to small purchases which includes obtaining price quotes from an adequate number of vendors (at least two) and maintaining this documentation. Questioned Costs: None Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding.