Finding 440 (2022-003)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-10-23
Audit: 979

AI Summary

  • Core Issue: A $9,000 repair for a walk-in cooler was made without obtaining required quotes or school board approval for an emergency purchase.
  • Impacted Requirements: This violates federal procurement rules that mandate quotes for expenditures over $5,000.
  • Recommended Follow-Up: Management should improve procedures to ensure compliance with federal procurement requirements in future transactions.

Finding Text

CRITERIA: Uniform guidance requires that quotes be acquired for expenditures more than $5,000. If the purchase is determined to be an emergency, then the purchase must be approved by the school board. CONDITION: The federal program paid $9,000 for the repair of a walk-in cooler. Management did not acquire additional quotes or declare the matter an emergency purchase with school board approval. CAUSE: Per inquiry of management of the school district, it was their intentions for the matter to be declared an emergency purchase. However, the procedures necessary for that option were not implemented. EFFECT: The effect of this condition could result in noncompliance with the federal procurement requirements. QUESTIONED COSTS: None. PERSPECTIVE: This matter is limited to one transaction and is considered an isolated incident. RECOMMENDATION: It is recommended that management exercise caution and due diligence when subjecting federal expenditures to the federal procurement requirements to ensure compliance with those requirements. VIEWS OF RESPONSIBLE OFFICIAL: See Auditee’s Corrective Action Plan

Corrective Action Plan

Name of contact person responsible for corrective action: Mark Davis, Director of Food Service and Shelly Moore, Purchasing Agent Corrective action planned: Bid purchasing laws will be reviewed with appropriate personnel along with procedures for declaring emergency purchases. Anticipated completion date: July 1, 2023.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 441 2022-004
    Significant Deficiency
  • 576882 2022-003
    Significant Deficiency
  • 576883 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $1.68M
84.027 Special Education_grants to States $772,067
84.010 Title I Grants to Local Educational Agencies $557,082
84.425 Covid-19-Education Stabilization Fund (esser) III $450,699
84.425 Covid-19-Education Stabilization Fund (esser) II $195,814
84.027 Covid-19-Special Education-Grants to State Arp $86,544
84.013 Title I State Agency Program for Neglected and Delinquent Children and Youth $68,032
84.425 Covid-19-Education Stabilization Fund (esser) I $54,372
84.367 Improving Teacher Quality State Grants $49,470
12.U01 Reserve Officers' Training Corps $46,981
84.048 Career and Technical Education -- Basic Grants to States $34,496
84.173 Special Education_preschool Grants $19,903
84.424 Student Support and Academic Enrichment Program $17,995
93.778 Medical Assistance Program $7,767
84.173 Covid-19-Special Education- Preschool Grants Arp $3,899
10.555 Covid-19 - Emergency Operational Cost Reimbursement Program $1,264