Finding Text
1. Finding Number: 2022-002 2. This Finding is: Repeat from Prior Year. Year originally reported was 2021. 3. Federal Program Name and Year: Child Nutrition Cluster- 2022 & 2021 4. Project No.: 4210, 4220, Commodity Credit & Fresh Fruits and Vegetables 5. CFDA No.: 10.553 & 10.555 6. Passed Through: Illinois State Board of Education & U.S. Department of Defense 7. Federal Agency: United States Department of Agriculture 8. Criteria or specific requirement (including statutory, regulatory, or other citation) The District is required to follow the federal procurement standards for all purchases made in the Child Nutrition Cluster. 9. Condition The District's vast majority of purchases in the Child Nutrition Cluster were subject to Federal Small Purchase procurement standards and these standards were not followed. The District only solicited bids from two vendors for the food purchased for the Child Nutrition Cluster and only solicited a bid from one vendor for milk purchased for the Child Nutrition Cluster. In addition, the District did not perform any bidding procedures for multiple vendors that were paid amounts exceeding the micro purchase threshold. 10. Questioned Costs None 11. Context This condition was present for the entire year ended June 30, 2022 and affected a material portion of purchases made for the Child Nutrition Cluster during the year ended June 30, 2022. 12. Effect The District was not in compliance with Federal Small Purchase procurement standards in the Child Nutrition Cluster. 13. Cause Until March 2022, the District believed they were in compliance with federal procurement standards because they were located in a rural area and there are a limited number of available vendors. 14. Recommendation The District should solicit bids from a minimum of three vendors for all supplies and food used in the Child Nutrition Cluster regardless of if the vendor is local or a traditional supplier of the supplies or food. 15. Management's response Management implemented the auditor's recommendation in August 2022 for the fiscal year ended June 30, 2023