Finding 8539 (2023-004)

Significant Deficiency Repeat Finding
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-01-15
Audit: 11536
Organization: School District of Sevastopol (WI)

AI Summary

  • Core Issue: The District failed to obtain required price or rate quotations from qualified vendors for 2 out of 3 procurement transactions.
  • Impacted Requirement: This non-compliance violates 2 CFR 200.320, which mandates adequate vendor quotations for small purchases.
  • Recommended Follow-Up: The District should review and improve its procurement policies to ensure compliance with federal guidelines.

Finding Text

Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2023-155130-SB-546; 2023-155130-NSL-547 Award Period: 07/01/2022 – 06/30/2023 Compliance Requirement Affected: Procurement Type of Finding Significant deficiency in internal control over compliance Criteria 2 CFR 200.320 Methods of Procurement state that if the small purchases method is used, price or rate quotations must be obtained from an adequate number of qualified sources (at least 2) and that the procurement is vendor aggregate, not single item. Proposals must be solicited from an adequate number of qualified offerors. Condition During our testing of procurement transactions of the program we noted that 2 of 3 vendors selected were not supported by any price or rate quotations to ensure the District is prudent with the monies used towards the program. Questioned Costs None. Context The District's procurement did not conform to Uniform Guidance for 2 of 3 vendors tested in our sample. Cause The District did not follow Federal Funds Procurement policy. Effect Obtaining price or rate quotations from an adequate number of vendors allows the District to use federal funds in the most fiscally responsible way. The lack of quotes and proposals may cause the District to over pay for supplies or services. Repeat Finding Yes – 2022-005Recommendation We recommend the District review procurement policies and establish a procurement process in order to ensure this policy is being followed. Views of Responsible Officials There is no disagreement with the audit finding.

Corrective Action Plan

District will review procurement policies and provide additional training and education to ensure the minimum requirements of 2 CFR 200 and the procurement policies established are being followed.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 8537 2023-003
    Material Weakness Repeat
  • 8538 2023-003
    Material Weakness Repeat
  • 8540 2023-004
    Significant Deficiency Repeat
  • 8541 2023-005
    Significant Deficiency
  • 8542 2023-005
    Significant Deficiency
  • 584979 2023-003
    Material Weakness Repeat
  • 584980 2023-003
    Material Weakness Repeat
  • 584981 2023-004
    Significant Deficiency Repeat
  • 584982 2023-004
    Significant Deficiency Repeat
  • 584983 2023-005
    Significant Deficiency
  • 584984 2023-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $243,216
84.027 Special Education_grants to States $147,310
10.555 National School Lunch Program $146,752
84.010 Title I Grants to Local Educational Agencies $69,277
93.778 Medical Assistance Program $53,337
84.358 Rural Education $43,468
10.553 School Breakfast Program $15,013
84.367 Improving Teacher Quality State Grants $13,001
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $12,035
84.424 Student Support and Academic Enrichment Program $10,000
84.173 Special Education_preschool Grants $7,334
10.559 Summer Food Service Program for Children $6,152
84.048 Career and Technical Education -- Basic Grants to States $3,800
84.060 Indian Education_grants to Local Educational Agencies $847