Finding 619905 (2022-003)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-01-09

AI Summary

  • Core Issue: The District failed to meet federal procurement requirements for food services, violating 2 CFR 200.317 through 200.327.
  • Impacted Requirements: Non-compliance with Uniform Guidance increases the risk of future violations and reflects inadequate internal controls.
  • Recommended Follow-up: Management should implement stronger controls to ensure compliance with all relevant federal regulations.

Finding Text

2022-003 Department of Agriculture, Passed through North Dakota Department of Public Instruction Federal Financial Assistance Listing/CFDA Number 10.553/10.555/10.555C/10.555S/10.559 Child Nutrition Cluster Procurement, Suspension, and Debarment Material Noncompliance and Material Weakness in Internal Control over Compliance Criteria - Uniform Guidance and 2 CFR 200.317 through 200.327 set forth the standards non-federal entities other than states must follow when operating federal programs. Condition - In our testing of procurement, suspension, and debarment, it was identified that the District did not satisfy the requirements of 2 CFR 200.317 through 200.327. The District did not comply with requirements of the grant for procurement of food service related services. Cause - Lack of oversight, awareness, or understanding of all of the specific requirements under Uniform Guidance and applicable CFR sections, and controls were not adequately designed to ensure compliance with all of these requirements. Effect - Lack of noncompliance to federal requirements increases overall risk on non-compliance. Questioned Costs - None reported. Context/Sampling - All food service contracts were selected for testing. Repeat Finding from Prior Years - Yes Recommendation - We recommend that management establish controls to follow all applicable requirements under Uniform Guidance and applicable CFR sections. View of Responsible Officials - There is no disagreement with the audit finding.

Categories

Procurement, Suspension & Debarment Internal Control / Segregation of Duties

Other Findings in this Audit

  • 43460 2022-003
    Material Weakness Repeat
  • 43461 2022-003
    Material Weakness Repeat
  • 43462 2022-003
    Material Weakness Repeat
  • 43463 2022-003
    Material Weakness Repeat
  • 43464 2022-003
    Material Weakness Repeat
  • 619902 2022-003
    Material Weakness Repeat
  • 619903 2022-003
    Material Weakness Repeat
  • 619904 2022-003
    Material Weakness Repeat
  • 619906 2022-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.371 Striving Readers $164,528
10.553 School Breakfast Program $140,331
84.010 Title I Grants to Local Educational Agencies $63,803
84.048 Career and Technical Education -- Basic Grants to States $32,920
84.358 Rural Education $24,880
32.009 Emergency Connectivity Fund Program $21,696
84.367 Improving Teacher Quality State Grants $20,166
84.369 Grants for State Assessments and Related Activities $19,882
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $12,141
84.424 Student Support and Academic Enrichment Program $10,000
10.555 National School Lunch Program $7,130
84.425 Education Stabilization Fund $4,229
10.560 State Administrative Expenses for Child Nutrition $3,965
10.559 Summer Food Service Program for Children $2,824
84.027 Special Education_grants to States $642
10.649 Pandemic Ebt Administrative Costs $614