Finding 45562 (2022-004)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-01-15
Audit: 48008
Organization: Suring Public School District (WI)

AI Summary

  • Core Issue: The District failed to maintain adequate procurement records for the food service contract, raising concerns about compliance with federal procurement standards.
  • Impacted Requirements: The procurement process did not meet the criteria set by Uniform Guidance, specifically regarding documentation for contractor selection and award cost.
  • Recommended Follow-Up: The District should enhance its policies to ensure proper documentation and retention of procurement records, including cost analysis and selection criteria.

Finding Text

Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10.555 and 10.559 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-425670-DPI-SB-SEVERE-546, 2022-425670-DPI-NSL-547, 2022-425670-DPI-SK_NSLAE-561, 2022-425670-DPI-SFSP-561 Award Period: 07/01/2021 ? 06/30/2022 Type of Finding: ? Material Weakness in Internal Control Over Compliance Compliance Requirement: Procurement. Criteria or Specific Requirement: Uniform Guidance establishes methods of procurement (?200.320) related to federal programs which must be complied 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 contractor selection and the basis for award cost. Condition: The District procured its food service contractor through competitive proposals during the 2021-22 fiscal year; however, the District was unable to provide us with the original bid documents or other supporting documentation used to identify who the District requested proposals from and what criteria was used to award the contract. Questioned Costs: None. Context: During our testing, it was noted that the District was not able to provide support that the District followed appropriate procurement methods for the awarding of the food service contract for the current year. Cause: The District experienced staff turnover in which current District employees were unable to locate any information regarding the bidding process including cost/price analysis as stated by Uniform Guidance. Effect: Without adequate procurement records, federal and state agencies could potentially question if the contract was awarded with competition since only one bid was received by the District. Repeat Finding: No 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. Views of Responsible Officials: Management agrees with this finding.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 45561 2022-004
    Material Weakness
  • 45563 2022-004
    Material Weakness
  • 45564 2022-004
    Material Weakness
  • 45565 2022-004
    Material Weakness
  • 45566 2022-005
    Significant Deficiency
  • 45567 2022-005
    Significant Deficiency
  • 45568 2022-005
    Significant Deficiency
  • 45569 2022-005
    Significant Deficiency
  • 622003 2022-004
    Material Weakness
  • 622004 2022-004
    Material Weakness
  • 622005 2022-004
    Material Weakness
  • 622006 2022-004
    Material Weakness
  • 622007 2022-004
    Material Weakness
  • 622008 2022-005
    Significant Deficiency
  • 622009 2022-005
    Significant Deficiency
  • 622010 2022-005
    Significant Deficiency
  • 622011 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $143,218
84.287 Twenty-First Century Community Learning Centers $82,537
84.425 Education Stabilization Fund $76,348
93.778 Medical Assistance Program $67,253
10.553 School Breakfast Program $43,659
84.358 Rural Education $32,328
84.367 Improving Teacher Quality State Grants $23,525
84.027 Special Education_grants to States $20,796
10.555 National School Lunch Program $17,758
84.424 Student Support and Academic Enrichment Program $11,327
10.559 Summer Food Service Program for Children $4,736
84.048 Career and Technical Education -- Basic Grants to States $2,173
84.173 Special Education_preschool Grants $1,782