Finding 540543 (2024-001)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-03-29

AI Summary

  • Core Issue: The District failed to solicit quotes from at least three qualified vendors for milk purchases exceeding $10,000, violating procurement requirements.
  • Impacted Requirements: The Small Purchase Procurement Method mandates obtaining multiple bids for contracts between $10,000 and $250,000.
  • Recommended Follow-Up: Ensure the District implements a policy to solicit required quotes for future purchases, starting with the 2025-26 school year.

Finding Text

Criteria or specific requirement (including statutory, regulatory, or other citation): The Small Purchase Procurement Method adopted by ISBE requires that public schools entering into a contract for perishable food items in excess of $10,000 but not more than $250,000 must solicit quotes or bids from a minimum of three qualified vendors. Condition: The District did not solicit quotes or bids from qualified vendors for the purachse of milk products. Questioned costs: None. Context: The District did not implement internal controls to solicit bids from qualifying vendors for the purchase of perishable food items. Effect: The District may pay prices in excess of fair amounts without solicitng multiple different quotes or bids. Cause: The District believed an exception to bidding requirements for contracts for the purchase of perishable foods in the Illinois School Code [105 ILCS 5/10-20.21(a)(iv)] exempted the District from solicitng more than one quote or bid for milk products. Recommendation: The District should solicit quotes or bids from qualifying vendors for milk purchases as required under the Small Purchase Procurement Method. Management's Response: There is no disagreement. The District will implement policies to solicit quotes or bids from qualifying vendors in future years. A contract has already been awarded for the 2024-25 school year, so this internal control will be implemented for the 2025-26 school year.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 540541 2024-001
    Significant Deficiency
  • 540542 2024-001
    Significant Deficiency
  • 540544 2024-001
    Significant Deficiency
  • 540545 2024-001
    Significant Deficiency
  • 540546 2024-001
    Significant Deficiency
  • 1116983 2024-001
    Significant Deficiency
  • 1116984 2024-001
    Significant Deficiency
  • 1116985 2024-001
    Significant Deficiency
  • 1116986 2024-001
    Significant Deficiency
  • 1116987 2024-001
    Significant Deficiency
  • 1116988 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.027 Special Education Grants to States $383,389
84.010 Title I Grants to Local Educational Agencies $156,996
84.425 Cover-19 Education Stabilization Fund $133,211
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $42,281
10.553 School Breakfast Program $28,461
84.173 Special Education Preschool Grants $28,170
93.778 Medical Assistance Program $16,836
10.555 National School Lunch Program $12,657
84.425 Covid-19 Education Stabilization Fund $6,002
84.027 Covid-19 Special Education Grants to States $3,873
10.649 Covid-19 Pandemic Ebt Administrative Costs $3,256