Finding Text
Type of Finding: Material weakness in internal control over compliance
Other matters
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): 1-204-000
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 1 of 9 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: 1 of 9 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.