Finding Text
Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development
Federal Program: Child Nutrition Cluster
Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582
Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582)
Award Year: 2023
Type of Finding: Significant deficiency in internal control over compliance and noncompliance
Criteria: The District was unable to provide adequate supporting documentation showing that contractors were selected using an adequate procurement process.
Condition and Context: Procurement standards required by 2 CFR 200.318 were not followed. During our testing of procurement, we determined that management did not conduct an annual cost study or formal procurement process for food and supplies to be used in the food service program.
Cause: Lack of internal control over procurement requirements.
Effect: Failure to follow 2 CRF 200.318 could result in loss of federal funding. Also, the District risks overpaying for food and supplies by not following procurement standards.
Questioned Costs: None noted.
Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance.
Recommendation: We recommend that management complies with all procurement requirements applicable to 2 CFR 200.318 to ensure the District’s compliance with such requirements.
Management Response: Management agrees with this finding, see Corrective Action Plan.