Finding Text
Finding 2022-004 ? Procurement. (ALN 84.425D ESSER I, ALN 84.425D ESSER II, ALN 84.425U ARP ESSER III, ALN 84.010 Title I grants to local educational agencies and ALN 84.367 Supporting effective instruction state grants) 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 purchase orders issued for contractual services for educational consulting services. Written contracts containing 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, were not entered into. The district considered the purchase orders to be contracts for the services; however, there was no wording on the purchase orders that addressed termination for cause or convenience. CAUSE: The school district did not realize that written contract elements were required for contracts in excess of $10,000 and further did not realize that specific termination language should be included in the written contracts. EFFECT: The district did not comply with the provisions outlined in Appendix II to 2 CFR 200. QUESTIONED COSTS: None 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. VIEWS OF RESPONSIBLE OFFICIALS: See the school district?s response in the auditee?s corrective action plan in this report.