Finding Text
Finding 2022-001. 84.425D COVID-19 ? Elementary & Secondary School Emergency Relief Fund ARP III; 84.027 Special Education ? Grants to States and 84.173 Special Education ? Preschool Grants; and 84.010 Title I Grants to Local Educational Agencies - Cost Principles (Contract Provisions for Non-Federal Entity Contracts Under Federal Awards). Criteria: Appendix II to 2 CFR 200 ? Contract Provisions for Non-Federal Entity Contracts Under Federal Awards requires that all contracts in excess of $10,000 must address termination for cause and for convenience by the non-Federal entity, including the manner by which it will be affected and the basis for settlement. Condition: Our testing of nonpayroll expenditures showed contractual service agreements for educational consulting services and special education therapy and consulting services that did not contain language that addresses termination for cause and for convenience by the school district, including the manner by which it will be affected and the basis for settlement. Cause: The school district did not realize that the contract element was required. Effect: The contracts did not comply with all contract provisions outlined in Appendix II to 2 CFR 200. Questioned Costs: None Perspective: We identified five (5) vendors providing services under Federal awards whose contracts did not contain the contract provisions regarding termination for cause and for convenience. Recommendation: The district should familiarize itself with the requirements of Appendix II to Part 200 ? Contract Provisions for Non-Federal Entity Contracts Under Federal Awards and provide a thorough review of each contract in excess of $10,000 before approving the contract, checking for appropriate provision wording. Views of Responsible Officials: The views of district administration are outlined in the Auditee?s Correction Plan.