Finding 596341 (2022-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-06
Audit: 18254
Organization: Waltonville Cusd 1 (IL)

AI Summary

  • Core Issue: The District spent $89,100 on playground equipment without proper competitive bidding or exemption documentation.
  • Impacted Requirements: This violates both District policy and federal procurement guidelines for purchases over $25,000.
  • Recommended Follow-Up: The District should update its procurement policy and educate staff on compliance with federal guidelines for future purchases.

Finding Text

Criteria - District policy requires formal bidding procurement for expenditures in excess of $25,000 in compliance with 105 ILCS 5/10-20.21, unless specifically exempted. Uniform Guidance 2 CFR 200.320 also requires competitive procurement for purchases exceeding the micro-purchase threshold. Condition - We reviewed the District's purchase of playground equipment and installation in the amount of $89,100 under the ESSER III grant award. The District was unable to provide documentation supporting competitive procurement or explicit approval of exemption from competitive procurement procedures. Context - Although the District was unable to provide documentation supporting competitive procurement for the playground equipment, the December 16, 2021 Board of Education meeting minutes indicate explicit approval of the procurement in advance of work performed and payment made. Additionally, the Board of Education meeting minutes indicate performance of competitive bids for other District purchases. Effect - The District purchased $89,100 of playground equipment and installation from one vendor without obtaining bids or quotes; therefore the District cannot be sure it received teh best possible price for the equipment and installation under the ESSER program. Cause - The District has not historically used federal grant awards to fund procurements in excess of federal micro-purchase thresholds and was not aware of the competitive procurement requirements for federal awrds under uniform guidance. Recommendation - We recommend the District review their procurement policy and Uniform Guidance procurement requirements to ensure compliance with future purchases in excess of $25,000.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 19898 2022-001
    Material Weakness
  • 19899 2022-001
    Material Weakness
  • 19900 2022-001
    Material Weakness
  • 19901 2022-001
    Material Weakness
  • 596340 2022-001
    Material Weakness
  • 596342 2022-001
    Material Weakness
  • 596343 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.027 Special Education_grants to States $141,433
10.553 School Breakfast Program $41,577
84.010 Title I Grants to Local Educational Agencies $35,198
10.555 National School Lunch Program $12,121
93.778 Medical Assistance Program $8,063
84.048 Career and Technical Education -- Basic Grants to States $6,156
84.367 Improving Teacher Quality State Grants $1,721
84.173 Special Education_preschool Grants $1,591
84.425 Education Stabilization Fund $648