Finding 8198 (2023-001)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-01-10
Audit: 10776
Organization: Kuna School District (ID)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The District failed to get Board approval for a $419,154 procurement from Shamrock Foods, violating its own policies for purchases over $50,000.
  • Impacted Requirements: This finding highlights a material weakness in internal controls related to compliance with procurement policies.
  • Recommended Follow-Up: Implement an additional control layer to ensure all procurements over $50,000 are submitted to the Board for approval.

Finding Text

Federal Agency Name: U.S. Department of Agriculture (USDA) Assistance Listing # (10.555,10.559,10.553) Federal Award Number: 20221N890347 Program Name: Child Nutrition Program Cluster Compliance Requirement: Procurement Type of Finding: Material Weakness in internal control over compliance Criteria: The District’s own procurement polices require Board approval for procurements greater than $50,000. Condition: The procurement of Shamrock Foods during August of 2022 was not presented to and approved by the Board as required by the District’s procurement policies. Total purchases were $419,154 during fiscal year 2023. Cause: A change in personnel with authority and responsibility over the program resulted in the results of the procurement not being presented to the Board. Effect: Noncompliance with Board procurement policies. Questioned Costs: None reported. Context/Sampling: Nonstatistical sampling was used. Sample size of 4 vendors with purchases greater than $50,000 out of 4 vendors were selected for testing, which accounted for $924,717 of $999,191 of nonpayroll federal program expenditures. Repeat Finding form Prior Year: No Recommendation: We recommend the District add an additional new layer of control to ensure all procurements greater than $50,000 are submitted to the Board for approval. Views of Responsible Officials: Management concurs with the finding as stated.

Corrective Action Plan

Date 09/22/2023 Finding 2023-001 Federal Agency Name: U.S. Department of Agriculture (USDA) Program Name: Child Nutrition Program Cluster Assistance Listing # (10.553,10.555,10.559) Finding Summary The procurement of Shamrock Foods during August of 2022 was not presented to and approved by the Board as required by the District’s procurement policies. Total purchases were $419,154 during fiscal year 2023. Response from Kuna School District The districts followed the RFP bid process as outlined in CRF 200 and the Idaho Code. Shamrock Foods was the only company that responded to the RFP, and they are known as the sole vendor in the area with this capability. The Kuna School District acknowledges that the final internal step, a second presentation to the board, did not occur. In reviewing the process, the district identified the cause as a change in personnel with authority over the program. In response, the School District has added a new layer of control. Now, when different departments engage in procurement, they will go through the business department. Afterward, they must submit all approved contracts to the business department, along with a detailed completed checklist of the entire procurement process. Additionally, it will be mandatory to include all supporting documents with the contract. Anticipated Completion Date: September -October 2023: additional procurement training. Effective November 2023, it will be mandatory to include all supporting documents with the contract. The contact person responsible for implementation of the corrective action plan: Elmira Feather, CFO.

Categories

Procurement, Suspension & Debarment Material Weakness School Nutrition Programs

Other Findings in this Audit

  • 8199 2023-001
    Material Weakness
  • 8200 2023-001
    Material Weakness
  • 8201 2023-001
    Material Weakness
  • 584640 2023-001
    Material Weakness
  • 584641 2023-001
    Material Weakness
  • 584642 2023-001
    Material Weakness
  • 584643 2023-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Covid-19 Education Stabilization Fund $2.97M
84.027 Special Education Grants to States $891,132
10.559 Summer Food Service Program $790,199
84.010 Title I Grants to Local Education Agencies $662,723
21.027 Coronavirus State and Local Fiscal Recovery Funds $660,601
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $296,714
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases $177,994
10.553 School Breakfast Program $173,882
84.011 Migrant Education State Grant Program $162,172
10.555 National School Lunch Program $137,939
84.367 Supporting Effective Instruction State Grants $114,271
93.575 Child Care Development Block Grant $83,324
84.424 Student Support and Academic Enrichment Program $76,424
84.027 Covid-19 Arp Special Education Preschool Grants $70,102
93.959 Substance Abuse and Mental Health Services $68,170
97.036 Disaster Grants-Public Assistance (presidentially Declared Disasters) $65,933
84.048 Career and Technical Education - Basic Grants to States (perkins Iv) $63,559
84.365 English Language Acquisition State Grants $28,803
84.173 Special Education Preschool Grants $26,889
84.323 Special Education - State Personnel Development $13,460
84.425 Covid-19 Arp Education Stabilization Fund $6,089