Finding 540556 (2024-002)

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

AI Summary

  • Core Issue: The District failed to solicit bids from at least three qualified vendors for milk purchases exceeding $25,000, violating procurement requirements.
  • Impacted Requirements: The Small Purchase Procurement Method mandates competitive bidding for contracts between $25,000 and $250,000.
  • Recommended Follow-Up: Ensure ongoing compliance by consistently soliciting bids from qualified vendors for all future perishable food purchases.

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 $25,000 but not more than $250,000 must solicit bids from a minimum of three qualified vendors. Condition The District did not solicit bids from qualified vendors for the purchase 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 a competitive bidding process. Cause Due to previous experience with limited bidder participation, the District did not solicit competing bids from qualifying vendors. Recommendation The District should solicit bids from qualifying vendors for milk purchases as required under the Small Purchase Procurement Method. Management's response There is no disagreement. Management has implemented the recommended internal control changes by soliciting bids from multiple vendors for milk products to be purchased for the 2024-25 school year.

Corrective Action Plan

Condition: The District did not solicit bids from qualified vendors for the purchase of milk products. Plan: The District will solicit bids from qualifying vendors for the purchase of milk products beginning with the 2024-25 school year. Management Response: There is no disagreement. Management has implemented the recommended internal control changes by soliciting bids from multiple vendors for milk products to be purchased for the 2024-25 school year.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 540557 2024-002
    Significant Deficiency Repeat
  • 540558 2024-002
    Significant Deficiency Repeat
  • 540559 2024-002
    Significant Deficiency Repeat
  • 540560 2024-002
    Significant Deficiency Repeat
  • 540561 2024-002
    Significant Deficiency Repeat
  • 540562 2024-002
    Significant Deficiency Repeat
  • 1116998 2024-002
    Significant Deficiency Repeat
  • 1116999 2024-002
    Significant Deficiency Repeat
  • 1117000 2024-002
    Significant Deficiency Repeat
  • 1117001 2024-002
    Significant Deficiency Repeat
  • 1117002 2024-002
    Significant Deficiency Repeat
  • 1117003 2024-002
    Significant Deficiency Repeat
  • 1117004 2024-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $154,927
84.425 Covid-19 Education Stabilization Fund $92,131
10.559 Summer Food Service Program for Children $38,164
10.553 School Breakfast Program $31,012
84.425 Education Stabilization Fund $29,844
93.778 Medical Assistance Program $20,428
10.560 Covid-19 State Administrative Expenses for Child Nutrition $20,347
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $16,778
10.555 National School Lunch Program $13,337
84.173 Special Education Preschool Grants $10,989
84.027 Special Education Grants to States $4,403
84.173 Covid-19 Special Education Preschool Grants $3,824
10.185 Local Food for Schools Cooperative Agreement Program $1,850
84.424 Student Support and Academic Enrichment Program $1,615
10.649 Covid-19 Pandemic Ebt Administrative Costs $653