Finding Text
Finding 22-07 U.S. Department of Education Passed Through the N.C. Department of Public Instruction Program Name: COVID-19 ? Education Stabilization Fund CFDA #: 84.425 MATERIAL WEAKNESS Compliance ? Allowable Costs/Cost Principles Criteria: Federal Uniform Guidance (2 CFR Section 200.320) describes the methods of procurement to be followed utilizing federal awards.The acquisition of property or services, the aggregate dollar amount of which is higher than the micro-purchase threshold ($10,000) but does not exceed the simplified acquisition threshold ($250,000) is considered a ?small purchase? and requires the district to obtain price or rate quotations from an adequate number of qualified sources as determined appropriate by the Board. Condition: During our audit, we selected a sample of expenditures made from federal Education Stabilization funds. We noted four purchases from these funds ranging from $29,134 to $109,388, all meeting the ?small purchase? threshold, for which management could not provide documentation supporting that price or rate quotations were obtained. Effect: The Board is not in compliance with the aforementioned criteria Cause: Controls were not in place to ensure that the aforementioned program requirement was adhered to. Questioned costs: Undetermined. All expenditures were made for purchases that were otherwise allowable had price or rate quotations been obtained. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Recommendation: We recommend that controls be put in place to ensure that the district complies with Federal Uniform Guidance(2 CFR Section 200.320) procurement methods when expending federal awards. Views of responsible officials and planned corrective actions: The Board of Education agrees with this finding and will implement controls to ensure that the district complies with Federal Uniform Guidance (2 CFR Section 200.320) procurement methods when federal awards.