Finding 514405 (2024-002)

2024 – 002 Procurement Federal Agency: U.S. Department of Agriculture Federal Program Names: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10.555, & 10.559 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2024-402303-DPI-SB-SEVERE-546, 2024-402303-DPI-NSL-547, 2024- 402303-DPI-SFSP-561 Award Periods: 7/1/23-6/30/24 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or Specific Requirement: 2 CFR 200.320 Methods of Procurement state that if the small purchases method is used, price or rate quotations must be obtained from an adequate number of qualified sources (at least 2). Condition: During our testing of procurement transactions of the program we noted that none of the vendors selected were supported by an adequate number of price or rate quotations to ensure the District is prudent with the monies used towards the program. Context: The District did not obtain an appropriate number of price or rate quotations for 2 of the 2 vendors tested in our sample. Cause: The District did not follow Federal Funds Procurement policy. Effect: Obtaining price or rate quotations from an adequate number of vendors allows the District to use federal funds in the most fiscally responsible way. The lack of price or rate quotations may cause the District to over pay for supplies or services. Questioned Costs: None Repeat Finding: Not a repeat Finding Recommendation: We recommend the District review procurement policies and establish a procurement process in order to ensure this policy is being followed. Views of Responsible Officials: There is no disagreement with this finding and management has developed a plan to correct the finding.