Finding 60920 (2022-004)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-03-09
Audit: 49382
Organization: Lake Region Special Education (ND)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The District lacks a written procurement policy that meets federal standards outlined in 2 CFR sections 200.318 through 200.326.
  • Impacted Requirements: Non-compliance with procurement standards increases the risk of employees being unaware of contracting requirements.
  • Recommended Follow-Up: Management should create a comprehensive written policy for procurement and ensure proper documentation is maintained.

Finding Text

Department of Education, Passed through North Dakota Department of Public Instruction Federal Financial Assistance Listing/CFDA Number 84.027/84.173 Special Education Cluster Procurement, Suspension, and Debarment Material Weakness in Internal Control over Compliance Criteria ? Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required. Condition ? In our testing of procurement, suspension and debarment it was identified that the District did not have a written policy on procurement that satisfied the requirements of 2 CFR sections 200.318 through 200.326. Cause ? Lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections and controls were not adequately designed to ensure compliance with all of these requirements. Effect ? A lack of documented policies increase the overall risk that employees are not aware of the specific requirements with contracting and awarding contracts to lower tier entities. Questioned Costs ? None reported Context/Sampling ? Overall procurement policy. Repeat Finding from Prior Years ? No Recommendation ? We recommend that management establish a written policy that addresses all of the procurement requirements for federal programs as identified in 2 CFR sections 200.318 through 200.326 and maintain adequate supporting documentation and records to document history and methods of procurement and the procedures performed to comply with these CFR sections. Views of Responsible Officials ? There is no disagreement with the audit finding.

Corrective Action Plan

Finding 2022-004 Finding Summary: Procurement, Suspension, and Debarment Material Weakness in Internal Control over Compliance During the course of the engagement, Eide Bailly identified that the District did not have a procurement policy in compliance with Uniform Guidance. Responsible Individuals: Rhandi Knutson, Director Corrective Action Plan: A procurement policy in compliance with Uniform Guidance will be approved and implemented. Anticipated Completion Date: June 30, 2023

Categories

Procurement, Suspension & Debarment Internal Control / Segregation of Duties

Other Findings in this Audit

  • 60921 2022-004
    Material Weakness
  • 60922 2022-004
    Material Weakness
  • 637362 2022-004
    Material Weakness
  • 637363 2022-004
    Material Weakness
  • 637364 2022-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $80,269
84.027 Special Education_grants to States $57,073
84.173 Special Education_preschool Grants $40,055
84.425 Education Stabilization Fund $9,275