Finding 479591 (2023-001)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
$1
Year
2023
Accepted
2024-07-29
Audit: 316135
Organization: Moniteau School District (PA)

AI Summary

  • Core Issue: The Moniteau School District failed to competitively procure technology equipment, lacking necessary documentation to support the contract process.
  • Impacted Requirements: This violates 24 Pa. Statutes 751 and 2 CFR 200.318(i), which mandate proper bidding and record-keeping for contracts exceeding certain thresholds.
  • Recommended Follow-Up: Update procurement policies to ensure compliance and retain documentation; consult the PA Department of Education for guidance on the questioned cost of $184,219.

Finding Text

CONDITION: The Moniteau School District contracted with a third-party vendor (Smart Solutions Technologies) for technology equipment (Smart Boards and Mobile Carts) for the District which exceeded the threshold for competitive procurement. The District was unable to provide documentation to verify that the third-party procurement contract was competitively procured, such as a bid evaluation and public solicitation. This is a repeat finding (2022-001) from prior fiscal year. CRITERIA: 24 Pa. Statutes 751 of the Public School Code and Section 2 CFR 200.318(i) of the Uniform Guidance prescribes the bidding requirements for equipment, supplies, and work of any nature made by a school district whereby the cost exceeds certain dollar thresholds as adjusted annually for an inflation index. As specified in 2 CFR 200. 318(i) of the Uniform Guidance, the District must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. CAUSE: School District personnel directly responsible for the oversight and execution of this contract, unintentionally assumed that this particular third-party contract did not require the specific bidding requirements as outlined in both 24 Pa. Statutes 751 of the Public School Code and Section 2 CFR 200.318(i) of the Uniform Guidance. EFFECT: The Moniteau School District did not comply with the requirements of 2 CFR 200.318(i) of the Uniform Guidance with regard to maintaining records sufficient to detail the history of procurement for the technology equipment. QUESTIONED COST: $184,219 RECOMMENDATION: I am recommending that the management of the School District review and update as necessary its procurement policies to ensure retention of the appropriate procurement documentation, in all instances, so as to comply with all applicable sections of the Uniform Guidance, in specifically, Section 2 CFR 200.318(i) of the Uniform Guidance. In addition, I am recommending that management contact the PA Department of Education, and explain the circumstances and oversight, and seek direction as to the allowability of this program cost in writing for their permanent files. VIEWS OF RESPONSIBLE OFFICIALS: Management of the School District has reviewed the above noted finding and recommendation and have developed a corresponding ‘Corrective Action Plan’ to address this matter (See Corrective Action Plan).

Corrective Action Plan

CONDITION: The Moniteau School District contracted with a third-party vendor (Smart Solutions Technologies) for technology equipment (Smart Boards and Mobile Carts) for the District which exceeded the threshold for competitive procurement. The District was unable to provide documentation to verify that the third-party procurement contract was competitively procured, such as a bid evaluation and public solicitation. CRITERIA: 24 Pa. Statutes 751 of the Public-School Code and Section 2 CFR 200.318(i) of the Uniform Guidance prescribes the bidding requirements for equipment, supplies, and work of any nature made by a school district whereby the cost exceeds certain dollar thresholds as adjusted annually for an inflation index. As specified in 2 CFR 200. 318(i) of the Uniform Guidance, the District must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. RECOMMENDATION: I am recommending that the management of the School District review and update as necessary its procurement policies to ensure retention of the appropriate procurement documentation, in all instances, so as to comply with all applicable sections of the Uniform Guidance, in specifically, Section 2 CFR 200.318(i) of the Uniform Guidance. In addition, I am recommending that management contact the PA Department of Education, and explain the circumstances and oversight, and seek direction as to the allowability of this program cost in writing for their permanent files. MANAGEMENT’S CORRECTIVE ACTION PLAN: Management will review and update as necessary, it’s current procurement policies and procedures to ensure compliance with all applicable sections of the Uniform Guidance, in specifically, Section 2 CFR 200.318(i) of the Uniform Guidance. The timeframe for completion of this process will be finalized during the District’s 2024-2025 fiscal year and will be revised on an ongoing basis as required by new policy directives from oversight agencies.

Categories

Questioned Costs Procurement, Suspension & Debarment

Other Findings in this Audit

  • 479590 2023-003
    Material Weakness
  • 479592 2023-002
    Material Weakness
  • 479593 2023-002
    Material Weakness
  • 479594 2023-002
    Material Weakness
  • 479595 2023-002
    Material Weakness
  • 1056032 2023-003
    Material Weakness
  • 1056033 2023-001
    Material Weakness Repeat
  • 1056034 2023-002
    Material Weakness
  • 1056035 2023-002
    Material Weakness
  • 1056036 2023-002
    Material Weakness
  • 1056037 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.027 Special Education_grants to States $255,139
10.553 School Breakfast Program $201,502
32.009 Emergency Connectivity Fund Program $66,389
10.555 National School Lunch Program $61,625
84.425 Education Stabilization Fund $11,771
93.778 Medical Assistance Program $4,874
84.173 Special Education_preschool Grants $2,345
10.649 Pandemic Ebt Administrative Costs $628