Finding Text
2024 - 007: Procurement
Federal Agency: U.S. Department of Education
Federal Program Title: Special Education Cluster
ALN: 84.027 and 84.173
Federal Award Identification Numbers and Year: H027A230087 & H173A230086, 2024
Pass-Through Agency: Minnesota Department of Education
Pass-Through Numbers: H027A230087 & H173A230086
Award Period: July 1, 2023 – June 30, 2024
Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matters
Criteria or Specific Requirement: The District should have controls in place to ensure compliance per the requirements of 2 CFR §200.303. 2 CFR section 200.318(i) requires the District to maintain records sufficient to detail the history of procurement. These records should include, but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price.
Condition: The District did not perform the required control over procurement procedures over covered transactions in the special education program in 2024.
Questioned Costs: $19,317
Context: Of the covered transactions tested, it was noted that the District did not perform the required control over procurement on 3 of 3 items tested for the special education program.
Cause: District did not retain the proper documentation for the procurement method utilized.
Effect: Without proper controls in place, there is a higher likelihood that District could not be in compliance with federal procurement requirements.
Repeat Finding: No
Recommendation: We recommend the District ensures it retains all documentation for procurement methods used such as retaining all quotes/bids received, as well as formally documenting rationale for all procurement decisions made.
View of Responsible Official: There is no disagreement with the audit finding.