Finding 567006 (2024-006)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-06-25
Audit: 359878
Organization: Elder Grove School (MT)

AI Summary

  • Core Issue: The district failed to verify that program participants were not suspended or debarred from federal awards.
  • Impacted Requirements: This noncompliance violates federal procurement regulations outlined in 2 CFR part 180.
  • Recommended Follow-Up: Management should create procedures to ensure compliance with procurement standards and verify participant eligibility.

Finding Text

NONCOMPLIANCE WITH PROCUREMENT AND SUSPENSION AND DEBARMENT REQUIREMENTS, DRINKING WATER STATE REVOLVING FUND, ASSISTANCE LISTING No. 66.468 Criteria: The regulations in 2 CFR part 180 restrict making Federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. Condition: The district did not verify that program recipients/participants were not suspended, debarred, or otherwise excluded from participation in the program. Cause: The district does not have procurement policies and procedures in place that allow it to comply with procurement standards outlined in the Uniform Guidance. Effect: Non-compliance with program terms and conditions. Questioned Costs: None Recommendation: Management should develop procedures that will provide reasonable assurance that procurement of goods and services are made in compliance with applicable federal regulations and other procurement requirements specific to a federal award or subaward, and that no subaward, contract, or agreement for purchase of goods or services is made with any suspended or debarred party. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.

Corrective Action Plan

NONCOMPLIANCE WITH PROCUREMENT AND SUSPENSION AND DEBARMENT REQUIREMENTS, DRINKING WATER STATE REVOLVING FUND, ASSISTANCE LISTING No. 66.468 Name of Contact Person: Board of Trustees Corrective Action: The district appreciates the clarification regarding the required compliance certifications for all required entities receiving federal funds. In this case, the compliance documentation collected by our engineering contractor was not sufficient to satisfy the requirements. On future projects, the district will request this documentation from all required entities. The district will also work with our engineering contractor to update processes to correct the identified deficiency. Proposed Completion Date: Fiscal year 2025

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1143448 2024-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
66.468 Drinking Water State Revolving Fund $487,825
84.425 Education Stabilization Fund $78,977
10.555 National School Lunch Program $77,734
84.010 Title I Grants to Local Educational Agencies $71,233
10.559 Summer Food Service Program for Children $32,880
84.358 Rural Education $26,365
10.553 School Breakfast Program $16,135