Finding 586911 (2023-002)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-01-29
Audit: 14128
Organization: Franklin Parish School Board (LA)
Auditor: Eisneramper LLP

AI Summary

  • Core Issue: The Child Nutrition Program did not follow required bidding processes for purchasing produce, violating Uniform Guidance.
  • Impacted Requirements: Contracts lacked necessary provisions from Appendix II part 200, risking non-compliance with federal procurement standards.
  • Recommended Follow-Up: Implement a formal bidding process and standardize contracts to include required provisions to ensure compliance moving forward.

Finding Text

Criteria: Non-federal entities must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326 (the Uniform Guidance) and use their own documented procurement procedures, which reflect applicable State and local laws and regulations provided that the procurements conform to applicable Federal statutes and the procurement requirements identified in 2 CFR part 200. Internal controls should be designed to ensure compliance with these federal requirements.Additionally, contracts involving federal funds must include certain provisions of Appendix II part 200. Condition: The Child Nutrition Program is administered for the School Board by the CNP department. The Department’s purchase of produce products was not subjected to bidding or other means of competitive solicitation in accordance with the Unform Guidance. Additionally, the contracts with vendors do not include the provisions contained in Appendix II part 200. Universe/ Population: Food purchases subject to the procurement regulations totaled approximately $1,000,000, among 5 vendors, of which 4 contracts totaling $800,000 were subject to audit. Of the 4 audited, 1 contract with purchases totaling $120,000 for the fiscal year was found to be non-compliant. Effect: The School Board may be non-compliant with the Uniform Guidance with respect to this contract for produce products. Cause: A shortage of suppliers in the geographic area may have led to the decision to forego the pricing and/or bidding process. Recommendation: Pricing, bidding or other forms of solicitation allowed by the Uniform Guidance should be conducted by the School Board’s Child Nutrition Department. Contracts should be standardized to include the language and provisions of Appendix II part 200. View of Responsible Official and Corrective Action Plan: The Child Nutrition Supervisor acknowledges the finding regarding the purchase of produce products for SY 2022-23. There is only one regional produce distributor that successfully delivers to the Franklin Parish area with accurate invoices and timely deliveries based on past history. Due to staff changes and re-assignment of essential job functions, the produce bid was overlooked for this this year only. Moving forward, the CNP Supervisor bas established a procurement schedule for developing and revising necessary formal bids in compliance with Federal and State requirements and all CNP central office staff. During SY 2022-23, the Franklin Parish Child Nutrition Program experienced multiple shortages of canned and frozen vegetables and fruits. This made it essential to fill in with fresh produce to meet meal pattern requirements. This created a marked increase in the cost of the fresh produce available to us and increased our reliance on fresh produce.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 10465 2023-001
    Significant Deficiency
  • 10466 2023-002
    Significant Deficiency
  • 10467 2023-002
    Significant Deficiency
  • 10468 2023-002
    Significant Deficiency
  • 10469 2023-002
    Significant Deficiency
  • 10470 2023-001
    Significant Deficiency
  • 586907 2023-001
    Significant Deficiency
  • 586908 2023-002
    Significant Deficiency
  • 586909 2023-002
    Significant Deficiency
  • 586910 2023-002
    Significant Deficiency
  • 586912 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $5.72M
84.010 Title I Grants to Local Educational Agencies $2.28M
93.600 Head Start $1.32M
10.553 School Breakfast Program $428,042
84.371 Striving Readers $266,373
84.367 Improving Teacher Quality State Grants $251,121
10.555 National School Lunch Program $190,033
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $168,863
84.424 Student Support and Academic Enrichment Program $103,749
84.027 Special Education_grants to States $94,285
93.558 Temporary Assistance for Needy Families $56,745
12.U01 Reserve Officer Training Corps $54,076
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $52,621
84.358 Rural Education $39,768
84.048 Career and Technical Education -- Basic Grants to States $31,609
93.575 Child Care and Development Block Grant $11,875
84.173 Special Education_preschool Grants $245