Finding Text
Type of Finding: Material Weakness in Internal Control Over Compliance and Compliance Finding Criteria: Uniform guidance requires that the District ensure that purchases over the micro-purchase threshold, $10,000 per District policy, go through the appropriate procurement procedures. This includes properly considering alternative vendors to see if the District is paying a reasonable price for the item or service and documenting that decision making process. This could be done through quotes, whether formal or informal, or reviewing alternative services online and documenting some applicable prices. This helps to ensure open and fair competition for the federal spending is maintained each year. Condition: In our testing sample for the Child Nutrition Cluster, we noted three instances where the district did not properly document their cost analysis or decision-making process for going with the vendor they utilized. Context: It was noted that for two contracts the district did not retain documentation of quotes received. It was also noted that for a contract with undetermined period terms that the district did not retain documentation of a cost / benefit analysis that would explain why the district did not receive bids or quotes for it during the year. This was a statistically valid sample. Questioned Costs: $337,023 Cause: The District used two of the vendors to supplement goods provided by the district?s main food service vendor. The other vendor the district has an ongoing contract with undefined period terms and was unaware of the procurement requirement for this procurement. Effect: The District was not in compliance with the Uniform Guidance requirements around procurement. Repeat Finding: No Recommendation: We recommend the District review its procurement policies and procedures to ensure that the all procurements are sufficiently documented such that an outside party with knowledge of the requirements would clearly see the methods of procurement utilized and the rationale behind such methods. View of Responsible Official: There is no disagreement with the audit finding.