Finding 583225 (2023-005)

- Repeat Finding
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2023-12-28
Audit: 8708
Organization: Kairos Academies (MO)

AI Summary

  • Core Issue: The School lacks procedures to check if vendors are debarred or suspended before awarding contracts over $25,000.
  • Impacted Requirements: This violates Uniform Guidance, which mandates that procurement processes ensure entities are eligible for covered transactions.
  • Recommended Follow-Up: Update procurement policies to include checks for debarment and suspension, ensuring compliance with regulations.

Finding Text

Criteria: Uniform Guidance requires procurement procedures to be in place to ensure entities that are entered into on covered transactions are not debarred, suspended or otherwise excluded from participating in covered transactions. Covered transactions include contracts for goods or services awarded under a non-procurement transaction (grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified by Uniform Guidance. Condition: Debarment and suspension review procedures or related controls are not in place. Cause: The School’s procurement policies and procedures do not address review for debarment or suspension. Effect: Contracts for goods or services could be awarded to entities that are debarred, suspended or otherwise excluded from participating in covered transactions. Recommendation: We recommend the School’s procurement procedures and procedures be reviewed and updated to include review of entities for debarment and suspension prior to entering into covered transactions. Management Response: Management agrees with the auditor. Management is currently reviewing the monitor compliance/procurement policies and has purchased software that will allow the School to properly create requisitions/purchase orders. The School has also adopted formal approval procedures in accordance with the School's policy and the Uniform Guidance.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 6781 2023-003
    Material Weakness Repeat
  • 6782 2023-004
    - Repeat
  • 6783 2023-005
    - Repeat
  • 583223 2023-003
    Material Weakness Repeat
  • 583224 2023-004
    - Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $1.33M
84.282 Charter Schools $262,162
84.215 Fund for the Improvement of Education $68,496
10.555 National School Lunch Program $33,099
84.027 Special Education_grants to States $20,747
84.010 Title I Grants to Local Educational Agencies $6,611
10.553 School Breakfast Program $1,699