Finding 44403 (2022-002)

Significant Deficiency Repeat Finding
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2022-12-20

AI Summary

  • Core Issue: The District failed to maintain essential procurement documentation for its food service contractor, including the signed contract and Board approval.
  • Impacted Requirements: Compliance with Uniform Guidance (200.320) mandates proper procurement methods and documentation, especially when only one bid is received.
  • Recommended Follow-Up: The District should enhance its procurement policies to ensure all necessary records are kept, including cost analysis and contractor selection criteria, to meet compliance standards.

Finding Text

Federal Grants Management Procurement Policy Assistance Listing Number: 10.CNC (10.553, 10.555) Compliance Requirement Procurement Condition The District procured its food service contractor through competitive proposals during the 2020-21 fiscal year; however, the District was unable to provide us with the original signed contract, Board of Education approval, or any other supporting documentation used to identify who the District requested proposals from and what criteria was used to award the contract. Criteria Uniform Guidance establishes methods of procurement (200.320) related to federal programs which must be compiled with by the District. Since the anticipated contract exceeded the Simplified Acquisition Threshold, procurement by competitive proposal was required and procurement records should include, at a minimum, the basis for contractors selection and the basis for award cost. Cause The District received only one bid during the competitive proposal process which it accepted. The District did not realize that despite receiving only one proposal, documentation supporting the competitive process and the decision to accept the proposal should be retained in accordance with Uniform Guidance. Effect Without adequate procurement records, federal and state agencies could potentially question if the contract was awarded without competition since only one bid was received by the District Questioned Costs None Recommendation We recommend the District review present policies and procedures, including the retention of sufficient support related to procurements to ensure it complies with the methods of procurement (200.320) standards in Uniform Guidance. Procurement records should include some form of cost or price analysis, along with the basis of for the contractor selected, especially in situations when the District receives only one bid. Repeat Finding Yes Views of Responsible Officials There is no disagreement with the audit finding.

Corrective Action Plan

The District understands the need to properly document procurement efforts in accordance with Uniform Guidance and State Single Audit Guidelines. In the future, the District will retain their documentation to support their procurement efforts for federal and state grants.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 44404 2022-002
    Significant Deficiency Repeat
  • 44405 2022-002
    Significant Deficiency Repeat
  • 44406 2022-003
    Significant Deficiency
  • 620845 2022-002
    Significant Deficiency Repeat
  • 620846 2022-002
    Significant Deficiency Repeat
  • 620847 2022-002
    Significant Deficiency Repeat
  • 620848 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.027 Special Education_grants to States $479,699
32.009 Emergency Connectivity Fund Program $325,890
10.553 School Breakfast Program $275,689
93.778 Medical Assistance Program $255,050
84.010 Title I Grants to Local Educational Agencies $204,199
10.555 National School Lunch Program $68,989
84.173 Special Education_preschool Grants $51,205
84.367 Improving Teacher Quality State Grants $47,955
84.425 Education Stabilization Fund $42,695
84.048 Career and Technical Education -- Basic Grants to States $12,299
84.424 Student Support and Academic Enrichment Program $10,481