Finding Text
Federal Program: Charter School Program CFDA No.: 84.282 Federal Agency: U.S. Department of Education Pass-Through Entity: N/A Award No.: As listed on the Schedule of Expenditures of Federal Awards Award Period: Various Compliance Requirement: Activities allowed, allowable cost principles, procurement and suspension and debarment Criteria: Uniform Guidance requires expenditures to be supported by appropriately approved purchase orders and price and rate quotes from two qualified sources for small purchases between $10,000 and $249,999. In addition, written policies require approval for purchase of supplies or services by the School?s CFO and additional approval by the Finance Committee in items in excess of $25,000. Condition: Purchase orders are not being prepared and price and rate quotes are not consistently being obtained, evaluated or approved. Cause: The School has written policies and procedures regarding procurement; however, these policies and procedures were not consistently followed. Effect: Lack of effect controls over procurement could lead to unauthorized purchase and the purchase could be disallowed by the federal awarding agency Recommendation: We recommend procedures be established to monitor compliance with the School?s procurement policies to ensure purchase are properly supported with purchase orders and formally approval of purchase is being document in accordance with the School?s policy. In addition, we recommend procedures be established to monitor compliance with Uniform Guidance related to all levels of purchases including but not limited to obtaining and analyzing price and rate quotes for all small purchases. Management Response: The current management team was not employed with the School during this audit period but agrees with the auditors findings and recommendations. Management of the School will develop an internal control manual for Federal grants to monitor compliance with the School?s procurement policies to ensure purchases are properly supported with purchase orders, appropriate number of proposals in an approved format, and formally approval of purchase is being documented in accordance with the School?s policy. In addition, management of the School will establish procedures to monitor compliance with Uniform Guidance related to all levels of purchases including but not limited to obtaining and analyzing price and rate quotes for all small purchases.