FAC Explorer

Finding 43331 (2022-004)

Significant Deficiency Repeat Finding
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-03-28
Audit: 45973
Organization: Sioux Falls School District 49-5 (SD)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The School District failed to document sufficient quotes for a software purchase funded by HEERF, violating procurement requirements.
  • Impacted Requirements: This non-compliance relates to 2 CFR section 200.318, which outlines necessary procurement processes.
  • Recommended Follow-Up: Ensure all large purchases go through the purchase order process to comply with procurement policies and avoid repeat findings.

Finding Text

2022-004 Department of Education Education Stabilization Fund: Higher Education Emergency Relief Find (HEERF) Federal Financial Assistance Listing 84.425F Institutional Portion Award Number P425F202657, Award Years 2020 and 2021 Procurement, Suspension and Debarment Significant Deficiency in Internal Controls over Compliance and Non-Compliance Criteria: 2 CFR section 200.318, sets forth the criteria for procurement requirements. Condition: For one vendor paid with HEERF funding, the the School District did not maintain documentation to support they obtained sufficient quotes for purchase of software. Cause: Purchases are not consistently going through the procurement process per the School District?s procurement policy or Uniform Guidance when large purchases are made through the School District?s voucher process rather than the purchase order process. Effect: As a result, the School District is not in compliance with 2 CRF section 200.318 procurement requirements. Questioned Costs: None. Context/Sampling: One of the 3 tested vendors did not have necessary documentation to support whether proper procurement policies were followed. The population for vendors meeting requirements for procurement was 7. Repeat Finding from Prior Year(s): Yes, Finding 2021-004. Recommendation: We recommend that all large purchases are vetted through the School District?s purchase order process to ensure proper procurement, suspension, and debarment policies are adequately followed for covered transations. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Identifying Number: 2022-004: U.S. Department of Education: Education Stabilization Fund: Institutional Portion ? 84.425F (HEERF) Finding: For one vendor paid with HEERF funding, the District did not maintain documentation to support they obtained sufficient quotes for purchase of software. Corrective Action Taken or Planned: STC will utilize and vet purchases in excess of $25,000 through the District?s purchase order process. Utilization of this process will ensure that quotes are obtained prior to purchase commitments. Contact person: Rich Kluin, Vice President ? Finance and Operations, Southeast Technical College Status of finding ? The corrective action will be implemented on April 1, 2023.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 43324 2022-003
    Significant Deficiency Repeat
  • 43325 2022-003
    Significant Deficiency Repeat
  • 43326 2022-003
    Significant Deficiency Repeat
  • 43327 2022-003
    Significant Deficiency Repeat
  • 43328 2022-002
    Material Weakness Repeat
  • 43329 2022-002
    Material Weakness Repeat
  • 43330 2022-003
    Significant Deficiency Repeat
  • 619766 2022-003
    Significant Deficiency Repeat
  • 619767 2022-003
    Significant Deficiency Repeat
  • 619768 2022-003
    Significant Deficiency Repeat
  • 619769 2022-003
    Significant Deficiency Repeat
  • 619770 2022-002
    Material Weakness Repeat
  • 619771 2022-002
    Material Weakness Repeat
  • 619772 2022-003
    Significant Deficiency Repeat
  • 619773 2022-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $12.50M
84.268 Federal Direct Student Loans $7.91M
84.010 Title I Grants to Local Educational Agencies $6.10M
93.600 Head Start $3.24M
84.063 Federal Pell Grant Program $3.17M
10.553 School Breakfast Program $2.69M
84.425 Covid19 Education Stabilization Fund $2.52M
32.009 Emergency Connectivity Fund Program $1.67M
84.027 Special Education_grants to States $1.48M
93.575 Child Care and Development Block Grant $1.40M
84.367 Improving Teacher Quality State Grants $1.18M
84.048 Career and Technical Education -- Basic Grants to States $1.08M
10.582 Fresh Fruit and Vegetable Program $509,324
84.011 Migrant Education_state Grant Program $492,277
84.424 Student Support and Academic Enrichment Program $478,847
84.365 English Language Acquisition State Grants $408,014
84.060 Indian Education_grants to Local Educational Agencies $357,049
10.559 Summer Food Service Program for Children $239,153
84.002 Adult Education - Basic Grants to States $218,368
84.196 Education for Homeless Children and Youth $159,916
84.425 Covid-19 Education Stabilization Fund $149,270
84.007 Federal Supplemental Educational Opportunity Grants $97,220
45.310 Grants to States $96,935
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $87,376
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $57,654
84.033 Federal Work-Study Program $50,482
93.576 Refugee and Entrant Assistance_discretionary Grants $47,603
84.173 Special Education_preschool Grants $30,731
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $24,750
12.404 National Guard Challenge Program $19,742
15.130 Indian Education_assistance to Schools $12,785
10.558 Child and Adult Care Food Program $11,595
84.377 School Improvement Grants $5,430
93.982 Mental Health Disaster Assistance and Emergency Mental Health $4,000
64.028 Post-9/11 Veterans Educational Assistance $2,784
45.025 Promotion of the Arts_partnership Agreements $1,402
84.181 Special Education-Grants for Infants and Families $474