Finding Text
Federal Agency Name: U.S. Department of Agriculture (USDA)
Assistance Listing # (10.555,10.559,10.553) Federal Award Number: 20221N890347
Program Name: Child Nutrition Program Cluster
Compliance Requirement: Procurement
Type of Finding: Material Weakness in internal control over compliance
Criteria: The District’s own procurement polices require Board approval for procurements greater than $50,000.
Condition: The procurement of Shamrock Foods during August of 2022 was not presented to and approved by the Board as required by the District’s procurement policies. Total purchases were $419,154 during fiscal year 2023.
Cause: A change in personnel with authority and responsibility over the program resulted in the results of the procurement not being presented to the Board.
Effect: Noncompliance with Board procurement policies.
Questioned Costs: None reported.
Context/Sampling: Nonstatistical sampling was used. Sample size of 4 vendors with purchases greater than $50,000 out of 4 vendors were selected for testing, which accounted for $924,717 of $999,191 of nonpayroll federal program expenditures.
Repeat Finding form Prior Year: No
Recommendation: We recommend the District add an additional new layer of control to ensure all procurements greater than $50,000 are submitted to the Board for approval.
Views of Responsible Officials: Management concurs with the finding as stated.