Finding 52144 (2022-003)

- Repeat Finding
Requirement
BI
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 53151
Organization: City of Salem School District (NJ)

AI Summary

  • Core Issue: The School District did not follow required formal procurement methods for purchases exceeding the threshold set by New Jersey.
  • Impacted Requirements: Non-compliance with 2 CFR § 200.320, which mandates formal procurement for certain purchases.
  • Recommended Follow-up: Ensure the School District retains documentation proving compliance with procurement methods as outlined in federal regulations.

Finding Text

Information on the Federal Program U.S. Department of Education ? Passed-through New Jersey Department of Education: Education Stabilization Fund (ESF): ESSER ? CARES Emergency Relief Grant Assistance Listing No. 84.425 3/13/2020 ? 9/30/2022 ESSER II Assistance Listing No. 84.425 3/13/2020 ? 9/30/2023 ESSER ? American Rescue Plan Assistance Listing No. 84.425 3/13/2020 ? 9/30/2024 Homeless II ? American Rescue Plan Assistance Listing No. 84.425 4/23/2021 ? 9/30/2023 Criteria or Specific Requirement Per 2 CFR ? 200.320 under Part 200 of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards dictates when the value of procurement for property or services exceed the simplified acquisition threshold or a lower threshold established by a non-Federal entity (State of New Jersey), formal procurement methods are required. Condition The School District did not provide evidence that it was in compliance with formal procurement methods. Questioned Costs Unknown. Context Two (2) purchases made by the School District in excess of the procurement threshold established by a non-Federal entity (State of New Jersey) did not have supporting documentation available to verify compliance with formal procurement methods. Effect or Potential Effect The School District was not in compliance with 2 CFR ? 200.320 under Part 200 of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Cause Unknown. Identification as a Repeat Finding See Finding 2021-004. Recommendation That the School District retain evidence that it complied with formal procurement methods as noted in 2 CFR ? 200.320 under Part 200 of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. View of Responsible Officials and Planned Corrective Action The responsible officials agree with the finding and will address the matter as part of their corrective action plan.

Corrective Action Plan

Finding 2022-003 The School District did not provide evidence that it was in compliance with formal procurement methods. The School District will make every attempt, when possible, to remain in compliance with formal procurement methods. School Business Administrator and Superintendent of Schools 2022-2023 fiscal year

Categories

Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Other Findings in this Audit

  • 48489 2022-002
    Material Weakness Repeat
  • 48490 2022-002
    Material Weakness Repeat
  • 52143 2022-002
    Material Weakness Repeat
  • 624931 2022-002
    Material Weakness Repeat
  • 624932 2022-002
    Material Weakness Repeat
  • 628585 2022-002
    Material Weakness Repeat
  • 628586 2022-003
    - Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $2.35M
84.010 Title I Grants to Local Educational Agencies $995,376
84.027 Special Education_grants to States $422,867
10.553 School Breakfast Program $364,572
10.555 National School Lunch Program $104,467
93.778 Medical Assistance Program $102,149
84.367 Improving Teacher Quality State Grants $76,164
84.424 Student Support and Academic Enrichment Program $62,306
10.582 Fresh Fruit and Vegetable Program $46,509
10.559 Summer Food Service Program for Children $28,090
84.048 Career and Technical Education -- Basic Grants to States $14,261
84.173 Special Education_preschool Grants $14,024
21.019 Coronavirus Relief Fund $7,002
10.649 Pandemic Ebt Administrative Costs $3,135