Finding 50700 (2022-012)

Significant Deficiency Repeat Finding
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-01-17
Audit: 42964
Organization: Bevill State Community College (AL)

AI Summary

  • Core Issue: The College failed to follow federal procurement rules by not obtaining required price quotes for a purchase above the small purchase threshold.
  • Impacted Requirements: Noncompliance with 2 CFR 200.320, which mandates proper procurement methods for federal awards.
  • Recommended Follow-Up: Strengthen procurement policies to ensure all purchases over the micro-purchase threshold are compliant with federal standards.

Finding Text

Finding 2022-012 ? Procurement (Significant Deficiency and Noncompliance) (Repeat finding) Information on the Federal Program: U.S. Department of Education, CFDA No. 84.425, COVID-19 Education Stabilization Fund ? Higher Education Emergency Relief Fund Criteria: 2 CFR 200.320 establishes the methods of procurement to be followed for non-federal entities when acquiring goods and services with federal awards. Aggregate purchases higher than the micro-purchase threshold must use the small purchase procedures which require price quotes be obtained from an adequate number of qualified sources. Condition: We selected a sample of six vendors to test for proper procurement procedures. Of those six, one vendor was not properly procured. Cause: The College did not obtain price quotes for a purchase which met the small purchase threshold. Effect: The College was not in compliance with federal procurement standards. Questioned Costs: None reported Recommendation: We recommend the College strengthen its policies and procedures surrounding the procurement process to ensure all purchases higher than the micro-purchase threshold are properly procured. Views of Responsible Officials: See Management?s View and Corrective Action Plan included at the end of the report.

Corrective Action Plan

Finding 2022-012 ? Procurement (Significant Deficiency and Noncompliance) (Repeat finding) Information on the Federal Program: U.S. Department of Education, CFDA No. 84.425, COVID-19 Education Stabilization Fund ? Higher Education Emergency Relief Fund Criteria: 2 CFR 200.320 establishes the methods of procurement to be followed for non-federal entities when acquiring goods and services with federal awards. Aggregate purchases higher than the micro-purchase threshold must use the small purchase procedures which require price quotes be obtained from an adequate number of qualified sources. Condition: We selected a sample of six vendors to test for proper procurement procedures. Of those six, one vendor was not properly procured. Management?s View: Management was made aware of this during the end of the prior year audit. These purchases had already been made by that time. Management has implemented a corrective action plan to ensure that policies and procedures are followed. Corrective Action Plan: Management has informed department heads regarding the need to obtain multiple quotes for purchases higher than the micro-purchase threshold and below the bid threshold. Management is in process of updating Policies and Procedures to include this requirement for Procurement. Going forward, requisitions submitted requiring multiple quotes will not be approved without a minimum of three (3) quotes provided by the requester. This will take effect immediately as the policies are formally updated. Anticipated Completion Date: September 30, 2023

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 50697 2022-011
    Significant Deficiency
  • 50698 2022-011
    Significant Deficiency
  • 50699 2022-011
    Significant Deficiency
  • 50701 2022-013
    Significant Deficiency
  • 627139 2022-011
    Significant Deficiency
  • 627140 2022-011
    Significant Deficiency
  • 627141 2022-011
    Significant Deficiency
  • 627142 2022-012
    Significant Deficiency Repeat
  • 627143 2022-013
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $7.20M
84.063 Federal Pell Grant Program $5.78M
84.047 Trio_upward Bound $1.63M
84.042 Trio_student Support Services $1.13M
84.044 Trio_talent Search $668,581
84.048 Career and Technical Education -- Basic Grants to States $311,511
84.002 Adult Education - Basic Grants to States $310,698
17.259 Wia Youth Activities $278,227
84.066 Trio_educational Opportunity Centers $257,611
17.600 Mine Health and Safety Grants $210,375
84.007 Federal Supplemental Educational Opportunity Grants $199,929
17.258 Wia Adult Program $97,601
23.002 Appalachian Area Development $41,017
17.278 Wia Dislocated Worker Formula Grants $25,135
84.033 Federal Work-Study Program $24,323
17.278 Covid-19 Wia Dislocated Worker Formula Grants $3,387