Finding 585190 (2023-001)

2023-001: Procurement – Elementary and Secondary School Emergency Relief (ESSER) – AL# 84.425D, 84.425U Condition: During our review of ESSER expenditures, we noted a bid bond was not obtained as part of the bidding process related to their HVAC project for Frederick Douglas Elementary School. The total contract is $6.35 million. Criteria: Per §200.326(a) of the Uniform Guidance, bid bonds must be obtained for construction contracts over the Simplified Acquisition Threshold of $250,000. Cause: The Schools’ current procurement policy does not include all of the Uniform Guidance requirements. Effect: The Schools did not obtain all of the necessary bonding documentation when going out to bid for the HVAC contract. Questioned Cost Amount: N/A Perspective Information: One finding related to the one contract tested. Context: The individuals overseeing the project were not aware of this procurement requirement. Recommendation: We recommend updating the Federal procurement policy to adhere to current Uniform Guidance requirements. Additionally, we recommend that management and purchasing agents remain familiar with procurement guidelines. Views of Responsible Officials and Planned Corrective Action: Management of Winchester Public Schools will update their current procurement policy to be in compliance with federal requirements under §200 of the Uniform Guidance.