Finding 584811 (2022-004)

Material Weakness
Requirement
I
Questioned Costs
$1
Year
2022
Accepted
2024-01-12

AI Summary

  • Core Issue: The School failed to maintain proper procurement documentation for federal program expenditures, violating federal guidelines.
  • Impacted Requirements: Non-compliance with CFR 200.318 and 2 CFR 200.320 regarding procurement procedures and documentation.
  • Recommended Follow-Up: Implement procurement policies that align with federal standards and ensure all procurement decisions are documented.

Finding Text

Identification of federal program: US DEPARTMENT OF EDUCATION, passed through the Indiana Department of Education, Charter Schools Program 84.282A Criteria : In accordance with CFR 200.318(i), the non-federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. In addition, in accordance with CFR 200.318(a) the non- federal entity must have and use documented procurement procedures consistent with federal procurement standards. Condition: Expenditures tested that met the small purchase threshold (purchases with a cost between $10,000 and $250,000) did not have documentation detailing the history of procurement. Cause : The School does not have procurement policies that follow federal guidelines, specifically 2 CFR 200.320 Methods of procurement to be followed. Effect : Property and equipment additions made using federal funds during the year did not have appropriate a support showing procurement policies were followed. Questioned costs: $83,864 Context: Two out of two purchases tested for procurement did not follow federal procurement methods. Recommendation : We recommend that the School institute procurement policies whereby acquisitions follow appropriate procurement steps as required by 2 CRF 200.350 and documentation of procurement decisions is maintained. View of responsible officials : See attached corrective action plan

Categories

Questioned Costs Procurement, Suspension & Debarment

Other Findings in this Audit

  • 8368 2022-003
    Material Weakness
  • 8369 2022-004
    Material Weakness
  • 8370 2022-005
    Significant Deficiency
  • 584810 2022-003
    Material Weakness
  • 584812 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.282 Charter Schools $635,116
84.425 Education Stabilization Fund $76,464
10.555 National School Lunch Program $69,545