Finding 502139 (2024-003)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2024-10-10

AI Summary

  • Core Issue: There is a material weakness in internal controls over compliance related to procurement methods for the Child Nutrition Cluster program.
  • Impacted Requirements: The District failed to follow appropriate procurement procedures for 3 out of 11 vendors tested, violating 2 CRF section 200.320.
  • Recommended Follow-Up: The District should implement training and controls to ensure compliance with procurement methods to avoid potential cost increases.

Finding Text

Type of Finding: Material weakness in internal control over compliance Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, and 10.556 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-2899-000 Award Period: July 1, 2023 – June 30, 2024 Criteria or Specific Requirement: Per 2 CRF section 200.320, the District should have controls in place to verify that the procurement method used was appropriate based on the dollar amount and conditions. Condition: During procurement testing, it was noted that the procurement by small purchase procedures for obtaining quotes were not followed for 3 of 3 vendors tested for vendors higher than the micro-purchase threshold ($10,000) but did not exceed the simplified acquisition threshold ($250,000). Questioned Costs: None Context: 3 of 11 vendors tested had not followed the proper procurement method per Uniform Grant Guidance (UGG) policy. Cause: Oversight. Effect: Lack of following the proper procurement method could result in paying more to a vendor when a different vendor could have provided a lower quote. This could ultimately result in questioned costs. After review, transactions individually are immaterial. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the District implement procedures and controls to ensure proper procurement method is followed. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the finding. Management will train employees on the UGG policy.

Corrective Action Plan

Recommendation: We recommend the District implement procedures and controls to ensure correct procurement policy is being followed. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Maintenance Service Supervisor will ensure he is following the UGG procurement policy for entities being paid with federal dollars, instead of Minnesota Legal Compliance guidelines. Name(s) of the contact person(s) responsible for corrective action: Jan Sackreiter, Business Manager. Planned completion date for corrective action plan: June 30, 2025.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 502134 2024-002
    Significant Deficiency
  • 502135 2024-002
    Significant Deficiency
  • 502136 2024-002
    Significant Deficiency
  • 502137 2024-002
    Significant Deficiency
  • 502138 2024-002
    Significant Deficiency
  • 502140 2024-003
    Material Weakness
  • 502141 2024-003
    Material Weakness
  • 502142 2024-003
    Material Weakness
  • 502143 2024-003
    Material Weakness
  • 1078576 2024-002
    Significant Deficiency
  • 1078577 2024-002
    Significant Deficiency
  • 1078578 2024-002
    Significant Deficiency
  • 1078579 2024-002
    Significant Deficiency
  • 1078580 2024-002
    Significant Deficiency
  • 1078581 2024-003
    Material Weakness
  • 1078582 2024-003
    Material Weakness
  • 1078583 2024-003
    Material Weakness
  • 1078584 2024-003
    Material Weakness
  • 1078585 2024-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $237,274
84.010 Title I Grants to Local Educational Agencies $154,936
84.425 Education Stabilization Fund $67,537
10.553 School Breakfast Program $56,755
84.011 Migrant Education_state Grant Program $49,777
21.027 Coronavirus State and Local Fiscal Recovery Funds $43,632
84.027 Special Education_grants to States $34,417
84.367 Improving Teacher Quality State Grants $27,150
84.173 Special Education_preschool Grants $10,200
84.424 Student Support and Academic Enrichment Program $10,154
84.048 Career and Technical Education -- Basic Grants to States $9,313
10.185 First Bite Grant $6,543
10.556 Special Milk Program for Children $1,585
10.169 Pandemic Ebt $653